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GM's interesting solution to flipping

Bandit216

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I didn't see anything about this on the forum, unless it's buried in a thread, but GM is looking at making their warranties non-transferrable if high demand vehicles are resold within a certain timeline. According to one of the business sites: " GM North America President Steve Carlisle has sent a letter to dealers informing them that the transfer of certain warranties will be voided if the vehicles are resold by the buyer within 12 months of delivery. " Certainly, an interesting approach to flipping. It appears it may apply mainly to non-GM dealer transactions. GM would continue to provide recall support on all vehicles.
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Ken

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that is one way to solve it. Recalls are required by law, warranties are not. We took many cars overseas as part of military assignments and the warranty coverage varied widely in Europe depending on manufacturer if they did anything or not. Oddly enough BMW USA warranty didn't cover squat in Germany, but Honda did honor a few claims.
 

jazzmanmonty

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This is stupid. For example, i bought a car last October. I thought it would be fine for the family and I. But in the past 9 months i've come to realize i need something bigger. So i want to sell it and get a bigger SUV before interest rates sky rocket. I can probably sell at MSRP or slightly higher to private third party.

A. Why should the third party be penalized because I decided on the wrong car and need something different?

B. Why shouldn't i be allowed to profit say $2,000 selling it at "fair market value", or at/ below MSRP without the car being blacklisted, when dealerships get around ADM by selling at cost to a "friend" then putting it back on the lot used for $25k above MSRP so corporate doesn't get mad?

See how one-sided this is becoming?

GM already started trouble by not letting lease's get bought out for an agreed to price at signing. Say your buyout price end of lease was $25K, not anymore! You have to turn it back into a GM dealer, they have to bid on it to get it back and then they'll add a markup to it if you want it.

This is all going in the wrong direction for the consumer.
 

Maquis

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This is stupid. For example, i bought a car last October. I thought it would be fine for the family and I. But in the past 9 months i've come to realize i need something bigger. So i want to sell it and get a bigger SUV before interest rates sky rocket. I can probably sell at MSRP or slightly higher to private third party.

A. Why should the third party be penalized because I decided on the wrong car and need something different?

B. Why shouldn't i be allowed to profit say $2,000 selling it at "fair market value", or at/ below MSRP without the car being blacklisted, when dealerships get around ADM by selling at cost to a "friend" then putting it back on the lot used for $25k above MSRP so corporate doesn't get mad?

See how one-sided this is becoming?

GM already started trouble by not letting lease's get bought out for an agreed to price at signing. Say your buyout price end of lease was $25K, not anymore! You have to turn it back into a GM dealer, they have to bid on it to get it back and then they'll add a markup to it if you want it.

This is all going in the wrong direction for the consumer.
A. I think in this case the selling price will get lowered by the amount it will cost to purchase a comparable warranty. You will pay for “deciding on the wrong car” instead of the buyer.

B. is real and I’m surprised it’s not discussed more on forums like this!
 

Ruination

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Lol if you're paying a 40k mark up I don't think the lack of warranty is going to dissuade you.

Just a way for GM to save some money
 

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Ford Senior Master

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I can see a future where the factory warranty is non transferable. With the push toward Certified PreOwned(which includes warranty) it may make some manufacturers go that direction.
 

shutterbug

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https://www.msn.com/en-us/autos/new...pc=U531&cvid=9b94b0424bc1458fb671cb3c7aa1c728
Based on this article, this is directed at dealers using straw buyers to circumvent ADM restrictions and customers trying to sell the truck that they didn't like.
GM has reiterated the earlier threat and added that it could make vehicle warranties non-transferrable if a dealer helps facilitate a resale of a vehicle like the Hummer EV inside of the first year.
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