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This was copied of z06 fb group so would like some clarification from those that may actually know ? Also what about the folks that already has sold their edition 1? Any truth to this?



Z06 flippers just got a surprise from GM….

Dear GM Dealership Team,
We are continuing to build momentum as we head into the second half of the year and have started shipments of several of our high demand and limited production products.
This letter serves as a follow-up to my communication from January of this year, where we reiterated your contractual requirements and our policies on selling new vehicles for resale. When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that do not adhere to GM’s standards, the customer experience suffers and GM’s brands are damaged. As a result, on certain high demand enthusiast products, we are limiting the transferability of certain warranties and barring the seller from placing future sold orders or reservations for certain high demand models (as identified by GM) if the vehicle is resold within the first 12 months of ownership. These changes are being implemented to ensure an exemplary customer experience, to ensure our brands remain strong, and to help prioritize ownership by brand enthusiasts and loyal customers. These changes will not impact product recalls in any way.
Currently, the products impacted by these changes include the following: 23MY Cadillac Escalade-V, Chevrolet Corvette Z06, and GMC HUMMER EV (SUT and SUV). Certain warranties will not be transferrable if the original owner resells the vehicle within one year of delivery.
In the coming days, you will receive a message from your respective brands that will outline full details of the warranties and the customer acknowledgement requirements to implement this new process. Thank you in advance for continuing to do your part in ensuring our customers have great experiences when purchasing these truly special products.
If you have any questions or comments, please reach out to your Zone Manager.
Regards,
President GM North America
📷

I tried to edit the post and lost all the comments…🤷‍♂️
 

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What's your take on previous owners that have sold ?
no way this can apply to previous sellers, nothing contractual like it was agreed to. May help in H2 though, by tanking some of those high prices. May not though as it’s just a warranty risk. Will have to see what it impacts and if in some localities it’s legal, could see it getting challenged in spots where warranties/consumer protections are required somewhat - surely some places.
 

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What's your take on previous owners that have sold ?
View attachment 2624

We just received this today also from GM. From what we are being told we will find out soon enough basically what all of this entails and the warranties affected.
I just wonder how this is legal? How does GM police this? If someone has health, financial or other hardship, GM cannot force them to keep a vehicle or be blacklisted. I think this will be more directed at repeat flippers that are obviously trying to profit from the transaction, and not the casual guy who drives the Hummer for a while, and had some life issue forcing a sale.

@BigJonEV @Dark-Fx what do you guys think?
 

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I just wonder how this is legal? How does GM police this? If someone has health, financial or other hardship, GM cannot force them to keep a vehicle or be blacklisted. I think this will be more directed at repeat flippers that are obviously trying to profit from the transaction, and not the casual guy who drives the Hummer for a while, and had some life issue forcing a sale.

@BigJonEV @Dark-Fx what do you guys think?
This email is limited to the scope of a few vehicles. If they sell a vehicle they are free to purchase another, just not one of the "certain high demand enthusiast products" for a period of time.
 

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This email is limited to the scope of a few vehicles. If they sell a vehicle they are free to purchase another, just not one of the "certain high demand enthusiast products" for a period of time.
I think the only problem is a number of folks on here seem interested in those other "enthusiast products" and if folks decide to flip in an attempt to make a quick profit and then order one of those products or reorder a Hummer (as a few have suggested), they may run up against this policy. That said, it does seem that this is prospective since they reference "customer acknowledgment requirements" so GM may be a bit late in implementing this new policy.

At first I was thinking the transferability of warranties was the bigger issue but if buyers are willing to pay $150K+ over MSRP, my guess is that won't likely deter them.
 

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I just wonder how this is legal? How does GM police this? If someone has health, financial or other hardship, GM cannot force them to keep a vehicle or be blacklisted. I think this will be more directed at repeat flippers that are obviously trying to profit from the transaction, and not the casual guy who drives the Hummer for a while, and had some life issue forcing a sale.

@BigJonEV @Dark-Fx what do you guys think?
What I don't understand is the limiting of warranties. To me that is punishing the buyer of a flipped car and not the flipper. The transferability of warranty is from original owner to 2nd owner and if they don't get it how does that stop flipping. The flipper gets their money and moves on.

@Tom E-Tron I believe you are correct on the repeat side of it. We had a guy we had sold several cars to and then ended up on the list. We asked what happened and apparently had done it with several OEMs to the tune of 40-50 flips in the last 2 years. He spread it out so much that not one dealer caught on but GM saw it all. I also don't understand the 1 year timeframe. Our managers trade vehicles every 6 months because that is what is allowed currently unless they plan on changing it for everyone. I do agree with @Nebula1701 it's really only limited to a few very high end GM vehicles. It's not going to affect that many people I would imagine.
 

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What I don't understand is the limiting of warranties. To me that is punishing the buyer of a flipped car and not the flipper. The transferability of warranty is from original owner to 2nd owner and if they don't get it how does that stop flipping. The flipper gets their money and moves on.

@Tom E-Tron I believe you are correct on the repeat side of it. We had a guy we had sold several cars to and then ended up on the list. We asked what happened and apparently had done it with several OEMs to the tune of 40-50 flips in the last 2 years. He spread it out so much that not one dealer caught on but GM saw it all. I also don't understand the 1 year timeframe. Our managers trade vehicles every 6 months because that is what is allowed currently unless they plan on changing it for everyone. I do agree with @Nebula1701 it's really only limited to a few very high end GM vehicles. It's not going to affect that many people I would imagine.
I would think the purpose is to make it harder to sell because buyers will want/expect the warranties to transfer and may be more hesitant to purchase the vehicle if that's not the case.
 

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This wont hold water in court. They either have to make the warranties valid for everyone or noone. you can't clause them because someone sells private property.

Now, they can bar you from getting new ones like these, if their system catches it, but thats about it. Look at how Ford suing Cena turned out...
 

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I would think the purpose is to make it harder to sell because buyers will want/expect the warranties to transfer and may be more hesitant to purchase the vehicle if that's not the case.
I agree to an extent. However, I feel the sellers in this case will be the more educated ones about what is going. It would be like not seeing a Carfax when you buy a car from a small lot only to find out 2 years later it was an accident before you bought it. This will come up when someone who has no idea their warranty is gone goes to get their Hummer fixed.
 

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Just to say it, this also does nothing to police the ADMs being tacked on by dealers which GM previously said concerned them...dealer can still add $100k markup and sell the car with a full warranty intact.
 

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I agree to an extent. However, I feel the sellers in this case will be the more educated ones about what is going. It would be like not seeing a Carfax when you buy a car from a small lot only to find out 2 years later it was an accident before you bought it. This will come up when someone who has no idea their warranty is gone goes to get their Hummer fixed.
Agree, it’s a flawed solution since buyers paying well over MSRP may not care about the warranty while others may care but not know the warranty is nontransferable. I’m surprised GM didn’t just go with a right of first refusal or something of that nature like some dealers have tried.
 

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This wont hold water in court. They either have to make the warranties valid for everyone or noone. you can't clause them because someone sells private property.

Now, they can bar you from getting new ones like these, if their system catches it, but thats about it. Look at how Ford suing Cena turned out...
I believe they are in the clear as long as the car is sold to it's original owner (the flipper) with a warranty. The warranty is then null/void if the vehicle changes hands within the first year. There will also probably be exceptions for things like repossessions, title transfers to the business/spouse/whatever of the original purchaser. Also, the threat of this is probably most of what they're going for. As someone waiting for their reservation to come up and seeing a constant stream of flipped Hummers on auction and listing sites, I think this is great. Maybe more people will start passing on Hummer EVs they don't plan on owning to flip for profit if the flipped car doesn't have a warranty, resulting in those of us that actually WANT the trucks getting ours sooner.

Basically anyone that actually wants a hummer EV should be shrugging at this news. Flippers and speculators are the only people that will get pissed about it.
 

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I just wonder how this is legal? How does GM police this? If someone has health, financial or other hardship, GM cannot force them to keep a vehicle or be blacklisted. I think this will be more directed at repeat flippers that are obviously trying to profit from the transaction, and not the casual guy who drives the Hummer for a while, and had some life issue forcing a sale.

@BigJonEV @Dark-Fx what do you guys think?
GM hasn't cancelled my other reservations yet. I used all the same contact info for them. Two Silverado EVs, Hummer SUV, and Blazer EV on reserve. They would be within their rights to do so, but I'm not buying anything strictly with the intention of flipping it. If I don't like the vehicle as much as the one it is replacing, it's gone. Plan on giving everything a fair shake first.

Making the warranties non-transferable really is only hurting the people buying secondary market. Kinda dumb.
 

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