Usually when the word “flipping” is used in conjunction with vehicles, it has to do with the effects of a crash. (And if not that, it might be in reference to what one driver might do to another driver who frustrated them.) But with increased demand for electric vehicles and supply chain issues slowing new vehicle production in recent quarters, flipping has taken on a whole new context — with some EV owners making a tidy profit from reselling their EV shortly after buying it.
All of that helps explain why GM is taking steps to make sure Hummer EV buyers don’t immediately flip their pickup or SUV for a profit. As Engadget reports, the automaker has announced a number of steps to crack down on this behavior, including altering how certain warranties are transferred and preventing flippers from placing future orders.
Hummer EVs aren’t the only GM vehicles affected by this. CorvetteBlogger recently published a letter by Steve Carlisle, President of GM North America, to the company’s dealerships. It outlined new policies for the Cadillac Escalade-V, Chevrolet Corvette Z06, and GMC Hummer EV (SUT and SUV) to act as a deterrent from would-be flippers.
“[O]n 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 wrote. He also stated that further details would be forthcoming.
Could this become a model throughout the industry? It’ll be interesting to see how this policy pans out.
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