There’s an entire entertainment industry dedicated to car overhaulers who buy rough classic cars for peanuts, put some elbow grease and polish into them, and sell them for big bucks — but that’s not going to fly with General Motors if you try to do it with some of the company’s hottest new vehicles.

According to a letter to dealers in the U.S. unearthed by Corvette Blogger, and warranty information on GM’s U.S. website, GM North America president Steve Carlisle has laid down the law on dealerships and on individuals who intend to buy coveted items like the Corvette Z06, Cadillac Escalade V, or even the GMC Hummer EV for the purpose of turning around and flogging it for profit.

You might think General Motors – or any automaker, for that matter – wouldn’t really care what happens to its offerings once they’ve rolled off the assembly line, but that’s not how it works. Resellers disrupt the market and the automakers don’t like that. It looks bad when legitimate customers can’t get the vehicles they want because someone else has snapped them all up for the sole purpose of making a buck, especially if they’re overseas buyers who drive them right onto the carrier for shipment.

In any case, if the vehicles have any warranty or recall issues, they might not get fixed properly, and a Z06 that’s only running on ZO-six-cylinders doesn’t look good to others who are considering buying one from a legitimate outlet.

General Motors has already offered US$5,000 in points on My Chevy Rewards, a credit-card loyalty program where points can be used to offset the cost of service visits, parts, OnStar subscriptions, or even new vehicles, once a buyer has kept a new Z06 for a year.

gm imposes strict measures on those flipping z06, hummer evs for profit

The 2022 GMC Hummer EV pickup Photo by GMC

But that obviously wasn’t enough, and Carlisle gets tough in this latest letter. If someone buys and flips one of those limited-production Corvettes, Escalades, or Hummers within the first twelve months, he or she won’t be able to order a new vehicle in future.

And beyond that, the vehicle’s warranty won’t follow it — in effect, it can’t be transferred, and so the new owner will have a very expensive car that will be lacking the balance of its warranties on bumper-to-bumper, powertrain, sheet metal, tires, and any accessories added to it. Any recalls will still apply – they’re a federal requirement – but repairs on anything else will be out-of-pocket for that new owner.

TECH NEWS RELATED

BMW Motorrad's R 1250 RT And K 1600 Touring Bikes Storm Into India

The heavyweight tourers raise the bar when it comes to long-distance touring capabilities.

View more: BMW Motorrad's R 1250 RT And K 1600 Touring Bikes Storm Into India

Quick Charge Podcast: August 17, 2022

Listen to a recap of the top stories of the day from Electrek. Quick Charge is available now on Apple Podcasts, Spotify, TuneIn and our RSS feed for Overcast and other podcast players. New episodes of Quick Charge are recorded Monday through Thursday and again on Saturday. Subscribe to our podcast in Apple Podcast or ...

View more: Quick Charge Podcast: August 17, 2022

BYD Atto 3 deliveries commence next week. Where are they going?

The BYD Atto 3 at Indooroopilly. Image: Riz Akhtar First deliveries of the BYD Atto 3 will commence next week, ending six months of anticipation for a growing number of electric vehicle enthusiasts. The Atto 3 went on sale in February, and is currently ranked as Australia’s lowest cost new ...

View more: BYD Atto 3 deliveries commence next week. Where are they going?

Video: Test driving a Polestar 2 in an EV road trip across Australia

An Australian couple tests the hype: How easy is it really to cross the continent in an electric vehicle? They’re both EV novices. Polestar provides a car. Are there really enough charge points for a relaxed month on the road? In this series, EV-curious producer Mick O’Donnell shares his ...

View more: Video: Test driving a Polestar 2 in an EV road trip across Australia

Porsche’s all-new 911 GT3 RS even comes with an F1-inspired DRS system!

If you’re pursuing a doctorate in aerodynamics, we suggest you put down that literature review of yours for a minute, and instead take a gander at the new Porsche 911 GT3 RS – It is just fully loaded with state-of-the-art aero bits. Not only is the “father of all ...

View more: Porsche’s all-new 911 GT3 RS even comes with an F1-inspired DRS system!

Keep Yourself Safe With These Items From Car Accessory Stores

A car is just a mode of transport if you look at its wheels and pedals. To make it yours, you can accessorize your car to suit your needs. However, you should also get accessories that can help you during emergencies. Unlike in the olden days when car accessories were ...

View more: Keep Yourself Safe With These Items From Car Accessory Stores

Skoda extends seven-year warranty offer

Skoda is prolonging its extended warranty deal, allowing new and used vehicle owners to add another two years until the end of the 2022. Introduced as part of Skoda’s service and subscription packs, the deal to extend the standard five-year warranty was due to expire on September 30, but the ...

View more: Skoda extends seven-year warranty offer

BMW to source Tesla-style batteries from EVE

A REPORT published by Reuters this week says China’s EVE Energy Co. will supply BMW with cylindrical-style battery cells for its Neue Klasse (New Class) electric vehicles. The battery cells, which share a similar design to those utilised by Tesla, will be installed in BMW EVs from 2025 onwards, with ...

View more: BMW to source Tesla-style batteries from EVE

Dodge Charger Daytona SRT concept previews an electric muscle car for the future

Here's What The Dodge Charger Daytona SRT EV Concept Sounds Like

A fuel-efficient & safe highway cruiser to replace my 2012 Maruti Dzire

KBB’s Best 2022 Full-Size Truck Is the Most Popular

2023 Mahindra Thar 5 Door SUV Spied Testing – Launch Next Year

Ford Ranger Lightning: all-electric Ranger is likely to happen during T6.2 platform cycle

SpaceX Falcon Heavy rocket could still launch first military mission in 2022

Hyundai reportedly set to launch two low-cost electric cars in Europe

To subsidise, or not to subsidise, electric vehicles – that is the question

Updated MG ZS EV about to arrive at Australian dealers

It gets easier every day! Lessons from an EV road trip from Perth to Sydney

mReview: Fiat 500 - La Dolce Vita

OTHER TECH NEWS

Top Car News Car News