Automakers are frustrated with flippers. Increasingly, they’re instituting policies to deter them. It started with truly rare and special models, like the Corvette Z06 or the Porsche 911 S/T. But it appears to be spreading to more models.
The latest vehicle to get an anti-flipping clause? Two off-road versions of the GMC Canyon midsize truck.
Car Flippers Are Like Ticket Scalpers
Car flippers work like ticket scalpers. They buy highly sought-after cars in short supply and resell them as quickly as possible for higher prices.
Automakers get a black eye out of the practice. When people see a vehicle listed for a price drastically higher than advertised, they tend to blame the company whose badge is on the car. But, under traditional sales contracts, automakers have no control over what a buyer does with a car after it leaves the dealership.
Exotic automakers have long had more restrictive sales contracts. It’s famously hard to buy a Ferrari, even when you have the money. The Italian automaker sued buyers and tried to take back cars when owners repainted them.
But, outside the rarefied world of six- and seven-figure cars, a purchase has traditionally been a purchase. Once you buy a truck, it’s yours to do as you please.
That’s changing.
How Automakers Fight Back
General Motors has made its move through warranties. The company last year began revoking warranties of some cars if owners resold them too quickly.
Porsche, with the 911 S/T, now requires buyers to lease the car for a year before they can buy it.
Tesla earlier this week inserted a clause into its sales contract saying that if an owner sells a Cybertruck in the first year, Tesla will take the profit from the sale. That clause has since disappeared from an online version of the contract, so it may not be active.
GMC’s Two Off-Roaders
GMAuthority reports that GMC has now added an anti-flipping clause to sales contracts for its Canyon AT4X and AT4X AEV — higher-priced, more capable off-road editions of the midsize truck.
The clause reportedly revokes all warranties if an owner sells the truck before six months of ownership. That might not stop a truly dedicated buyer with enough cash to make repairs on their own. But much of the allure of the off-road specials is in their warranties.
Off-road enthusiasts routinely modify trucks to make them more capable on the trail. But those modifications can void factory warranties. The appeal of an AT4X is that it has most off-road modifications anyone would want to make and is under warranty. If it isn’t, it may not be worth the price premium over buying a Canyon and making the mods aftermarket.
