Chevy Gets Hard Core With Corvette Flippers

Many car manufacturers don’t want you making money on them. If one of them sells you a car for X amount, you can’t make a chump out of them. You can’t sell it for twice the price. Yet, when it comes to Ford Broncos, Mustang Mach-E EVs, Redeye Widebody Chargers, and the first batch of C8 Corvettes, buyers can’t resist making a few grand, or more, by flipping them soon after taking delivery. Now, Chevy wants to create as many body blocks as it can to thwart flippers of its Z06 Corvette.

What is GM doing about Corvette flippers?

An orange 2023 C8 Chevrolet Corvette Z06 Coupe in front of a red Convertible on a racetrack
2023 C8 Chevrolet Corvette Z06 Coupe and Convertible | Chevrolet

To that end, it has contacted all of those who have ordered a Corvette Z06. GM will give them $5,000 if they keep their new Corvette for a year. But now, it is going even further. According to The Drive, “we are limiting the transferability of certain warranties and barring the seller from placing future sold orders or reservations if the vehicle is resold within the first 12 months of ownership.”

GM North American President Steve Carlisle sent this out just last Friday. When a popular GM vehicle is resold for more money, it isn’t good for the customer, and especially the brand. He also reminded dealers of GM’s requirements and policies about resale. 

Not only is the Corvette Z06 part of this “certain warranties” restriction, but this also applies to the Cadillac Escalade-V and GMC Hummer EV. So this is a two-pronged attempt to give flippers a reason to consider their profit-making instincts. It also means that those who placed an order, if they flip it, can’t do it a second time.

How does this affect secondary buyers of Z06 Corvettes? 

The C6 Chevrolet Corvette Z06 is a spiritual successor to the cars the Astronauts drove.
C6 Corvette Z06 | Don Kelsen, Los Angeles Times via Getty Images

This practice also compromises secondary GM buyers, too. There may be some, or almost none of the original warranty that the first buyer got. Look, as great as these GM products are, we all want it to cover unexpected issues that may crop up.

GM also suggests that “this will help prioritize ownership by our top brand enthusiasts and most loyal customers. We are at a loss to explain what, exactly, this really means. But mulling it over, we think it means protecting an image that GM wants to convey to monied buyers in the league of Ferrari and other exotics. Or, not. 

Who buys these popular GM vehicles?

The 2022 GMC Hummer EV off-roading
2022 GMC Hummer EV | GMC

What’s happening is that, in general, funded groups buy allocations of these low-volume, high-demand vehicles. Then they sell them on the secondary market for big profits. Will this happen with Z06 purchases? It depends on whether the restrictions imposed on warranties sway potential buyers. 

The GMC Hummer and Z06 Corvette are seeing strong demand and limited production. So if GM really wants to throttle secondary sales, it should just crank out more production of any vehicles it thinks might fall into the situation. It’s basic Business 101, always about supply and demand.