The scarcity of several models has fueled the rumor mill in recent years, and manufacturers seem to want to curb that phenomenon. GM has warned its dealers and customers that they could be penalized if they resell quickly and at high prices certain cars that appear to be in high demand. Among the lots, 2023 Cadillac Escalade-V, Chevrolet Corvette Z06 and GMC Hummer EV.
If, previously, rumors were reserved only for certain foreign, high-end or exclusive cars, the scarcity of several models since the pandemic has increased and democratized the matter, especially in terms of electricity. Buyers are lining their pockets by buying used cars and selling them quickly for tens of thousands of dollars. True in the case of the Tesla, it is also true in the case of the Hyundai IONIC 5, Kia EV6 and other full-size trucks.
Not only consumers are involved in this practice. Those who witnessed the incident, several businessmen smelled the good smell and decided to follow the same practice. If they cannot legally sell a new car for more than MSRP, they have developed some shenagan to buy the car through another dealer or dealers (brokers) to resell it at a higher price. to make the activity legal in some way.
Ford recently sent out a notice to its dealers advising them that they could be denied future inventory and allowances if they resell the Ford-F-150 Lightning, one of the brand’s most anticipated models, at a higher price.
This time, it’s the GM’s turn to react. The car maker has advised its dealers to follow company policies and help prevent customers from reselling certain popular models at a higher profit.
A revocable guarantee
The manufacturer mentioned that it can ban the customer from the future list of orders and reservations if he sells his car again within a period of one year. GM may also restrict and even cancel the transfer of certain securities. GM CEO Steve Carlisle outlined the changes in a letter sent to dealers last Friday.
Currently, the list of vehicles considered to be in high demand by the automaker and which are affected by the missive include the Cadillac Escalade-V, Chevrolet Corvette Z06 and GMC Hummer EV 2023 models.
According to Mr. Carlisle, when a car is sold at a higher price and by a third-party company, the consumer’s shopping experience is tainted. He concludes by stating that the changes were put in place to protect consumers and prioritize honest and loyal customers over fraudsters. He also asked his dealers to remain honest after some demanded additional fees for booking or making transactions not authorized by the dealers.
The influence of profit once again prevails in the automobile industry. If others are lining their pockets, it is always the consumer who is punished in the end. It’s also up to buyers to do their part to avoid overpaying for a car that could lose significant value once production returns to normal.
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