GM limiting warranty transfers on Hummer EV to prevent flipping

General Motors is cracking down on the possibility of flipping its most sought-after models for a quick profit.

Steve Carlisle, GM President for North America, sent a letter to the GM Dealership Team noting some changes are coming.

The changes will limit the transferability of certain warranties if the vehicle being resold was purchased within the past 12 months.

If a dealer is found to be flipping, that dealer will be banned from “placing future sold orders or reservations for certain high demand models (as identified by GM)”.

As of right now, GM is including the following models in this new rule change:

Carlisle explained the reasoning for these changes in the letter; he noted:

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. 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.

In addition to the dealership measures, GM also is incentivizing customers.

This included a $5,000 reward for customers who keep their eighth-generation Corvette Z06 for a year.

However, there is no word yet if the Hummer EV will get a similar customer incentive.

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