General Motors is reportedly using limitations on warranties to discourage Hummer EV scalping.
Corvette Blogger reports that GM has limited warranty transfers on vehicles sold within one year of their original purchase. This makes purchasing affected vehicles from scalpers riskier, especially for people who are already paying more than the retail price for the product.
GM North America President Steve Carlisle reportedly told dealers on July 29 that the company would also “prohibit the seller from placing future 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 specifically cites the “23MY Cadillac Escalade-V, Chevrolet Corvette Z06, and GMC HUMMER EV (SUT and SUV)” as some of the vehicles affected by this policy change. GM could put similar restrictions in place for other products that are expected to be in high demand.
The limitation makes sense for the all-electric Hummer. Some 77,000 people expressed interest in purchasing the vehicle, The Wall Street Journal reported in June, but GM only makes about a dozen a day. That means it would take the company 17 years to keep up with demand.
This is exactly the kind of situation that drives people to scalpers. These limitations probably won’t stop everyone from buying a Hummer EV from a scalper, but for people who actually care about manufacturer warranty coverage for their vehicle, they could make a difference.