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Discussion Starter · #1 ·
I saw this interesting video where GM plans to stop flippers. They want to implement if you sell the car within a year the warranty is voided. Fast forward to about 4 minutes for this news. It will be interesting to see because in my province the law states a product has to be warrantied for a reasonable amount of time. That might contradict the law which is illegal. At least more cars will go to those who truly want to keep it for a while.


 

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Canadian Lambos that are flipped to US buyers have their warranties voided but some US dealers will still honour the warranty.

There's just way too many loopholes for manufacturers to close and you also have the issues of dealing different warranty laws in each State so it's a legal minefield.
 

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If you wanted to flip, set up a trust, do a contract for deed for the no flip period. All Funds are transferred on day one by the buyer. Anything happens to the vehicle. The CD terminates. Instantly is owned by the buyer. Basically a holding company.

a creative lawyer should be able to figure it out.
 

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Interesting policy by GM. The Ferrari dealer has a Right of First Refusal stipulation in the written contract for the first 12 months. Also if you flip an in demand model like one owner did on a Pista after a couple months ownership, you get blackballed from buying new cars.
 

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Flipper would not care. A voided warranty is the buyer’s problem. The market may adjust by reducing the used car price by the value of the warranty only, so theyll still be flippable. The correct move from a business perspective is to raise new MSRP where supply meets demand where new car price > used market value.
 

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Flipper would not care. A voided warranty is the buyer’s problem. The market may adjust by reducing the used car price by the value of the warranty only, so theyll still be flippable. The correct move from a business perspective is to raise new MSRP where supply meets demand where new car price > used market value.
The correct business perspective is to manufacture more vehicles 🤫
 

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Discussion Starter · #13 ·
Raising the MSRP even more on a Z06 Corvette than the hike they already tacked on the C8 Z06 (35K CAD more than the C7 Z06 for a base model coupe) will reduce the amount of buyers. Maybe not in the US but here I think it might hinder sales.
144K CAD for middle of the road spec (2LZ) plus taxes
Sub total : 165K plus 10% luxury tax effective Sept 1 2022
Total 182K
That's super sports car territory. I think not many people will buy one. Put an even higher MSRP might as well go for a Lambo or Ferrari.

GM will also bar those from future purchases. A flipper will do it only once.

The dealers are going to have less allocations too. Some might not really care because their bread and butter profit are regular cars.
 

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The correct business perspective is to manufacture more vehicles 🤫
Also, charge the flip price right up front to the dealer, then let them figure out how to make some money on the car after they buy it from GM at the flip price.

Ferrari learned this the hard way by offering the 288GTO so cheap, which was inhaled and quickly resold en masse, FOR MASSIVE PROFITS, so they dramatically raised the price on the F40.
 
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