GM Seeks to Prevent Quick Flips of High Demand Vehicles
General Motors has asked its dealers to help prevent customers from quickly flipping high-demand vehicles and adding high markups.

2023 Cadillac Escalade-V
Cadillac
General Motors has asked its dealers to help prevent customers from quickly flipping high-demand vehicles and adding high markups.
The Detroit automaker wants to ban customers who resell certain high-demand vehicles within 12 months from placing future reservations and orders. GM also plans to limit the transfer of certain warranties.
Steve Carlisle, president of GM North America, outlined the change in a letter sent to dealers. The letter noted that the 2023 Cadillac Escalade-V, Chevrolet Corvette Z06 and GMC Hummer EV pickup and SUV "high demand" models would be the first vehicles affected by the change.
Industrywide, dealers and consumers now charge hefty prices for vehicles amid scarce inventory. GM has urged its dealer network to sell and price vehicles fairly.
"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," Carlisle said in the letter. "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."
GM will send a letter detailing the warranty transfer limitations and customer acknowledgment requirements to dealers this week, the letter said.
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →