GM threatens dealers, would be flippers, with non-transferrable warranties

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General Motors is pushing back against dealerships looking to mark up high-demand models, including the 2023 Chevrolet Corvette Z06, 2023 Cadillac Escalade-V, and 2022 GMC Hummer EV. GM is threatening to limit the transfer of warranties and withhold future allocations if dealers facilitate the reselling of these models within 12 months of delivery.

The news was first reported Autoblog and confirmed to Motor Authority by GM spokesperson Trevor Thompkins. GM North America president Steve Carlisle sent a letter to dealers Friday announcing the new policy, Thompkins confirmed.

2023 Cadillac Escalade-V

“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,” Carlisle said in the letter.

This is the second time Carlisle has warned dealers not to quickly resell popular new vehicles. He sent another letter in January warning against reselling by dealerships and “unauthorized dealers or other resellers that do not adhere to GM’s standards.” In both letters, Carlisle underscored dealers’ contractual obligation to adhere to GM policies, as well as the damage flipping of vehicles could do to the automakers’ brands.

2023 Chevrolet Corvette Z06

2023 Chevrolet Corvette Z06

The penalties against quick reselling come just as the 2023 Corvette Z06 and Escalade-V are slated to begin production. GM is already delivering Hummer EV pickup trucks, but the new policy also applies to the Hummer EV SUV that’s scheduled to launch for the 2024 model year.

In addition to ratcheting up consequences for dealers that flip cars, GM is also trying to incentivize 2023 Corvette Z06 buyers to keep their cars. It’s offering 500,000 My Chevrolet Rewards points—valued at $5,000—to owners who keep their cars for at least 12 months. The points can be redeemed for parts and accessories or service visits at dealerships.

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