GM took a hard line with folks who buy its most in-demand vehicles only to flip them for thousands over MSRP to a third party: Do so and negate several pretty important warranties. This includes the most powerful Cadillac ever: the Escalade-V. GM announced Friday it was walking back flippers timeline a bit on the grandest Escalade from a 12-month ban to six month.
According to GM Authority, owners of the supercharged 6.2-liter V8 SUV can sell their beast after only six months. It’s not clear why GM has made the change, we’ve reached out for comment and will update when we hear back.
Flippers of GM’s three most high-demand models could see their warranties voided — hopefully deterring both seller and buyer from the transaction. The owner of one of three vehicles — Escalade-V, Corvette Z06 or GMC Hummer—who sells those high-demand car before 12 months of ownership can also get in trouble with The General in other ways. GM sent us this statement in July when it first announced the resale moratorium:
For Corvette Z06 and Escalade-V, if ownership of the vehicle is transferred from the original owner within the first 12 months of delivery, the Bumper-to-Bumper, Powertrain, Sheet Metal, Tire and Accessory coverages will be voided.
For HUMMER EV, if ownership of the vehicle is transferred from the original owner within the first 12 months of delivery, the Bumper-to-Bumper, Electric Vehicle Propulsion, Sheet Metal, Tire and Accessory coverages under GM’s New Vehicle Limited Warranty will be voided. The Battery Warranty Coverage will not be affected for HUMMER EV.
The person who attempts to flip one of these high demand vehicles by selling it during their first year of ownership is prohibited from placing future sold orders for certain high demand products (identified by GM). So there is significant risk to the flipper’s future ability to buy, in addition to providing an incentive for a customer to buy new and receive a warranty rather than buy from a flipper.
The Escalade-V may stand alone in the supercharged luxury SUVs, but it’s not the only model from GM that flippers snatch up. GM put a resale moratorium on owners for the first year of ownership for the Corvette Z06 or GMC Hummer EV. We found one flipper trying to sell a new Hummer for $310,000 — three times the MSRP. For that you could get a fancy Cadillac Lyriq or a made-to-order coachbuilt Cadillac Celestiq, either coming with the satisfaction of correcting everyone who tries to pronounce your luxury EV’s name.