GM Will Penalize Flippers of the Corvette ZR1 by Punishing Subsequent Buyers | Carscoops

      The policy is likely to disadvantage second-hand buyers more than flippers.

      Corvette ZR1 purchasers must wait a full year before selling their vehicles or face repercussions.

      Those who do not comply will be banned by Chevrolet, leaving the second buyer without warranty coverage.

      This new rule reflects previous Chevrolet policies but does not address all concerns regarding the ZR1.

      The highly anticipated Corvette ZR1 is on the cusp of arrival, and buyers are eager. Flippers, on the other hand, are equally enthusiastic but for different motives. Chevrolet, however, seems intent on thwarting their schemes with a strategy reminiscent of previous attempts. The company has announced that any individual who resells their ZR1 within a year will incur two distinct penalties.

      In related news, GM has started penalizing flippers of the Corvette, Hummer, and Escalade V by voiding their warranties.

      Firstly, Chevrolet will blacklist these individuals from accessing other desirable models in the future. Secondly, they will void the warranty for the sold vehicle. This will undoubtedly disadvantage the second buyer, but Chevrolet likely hopes to deter flippers entirely. Selling a nearly new car that starts at $175,000 without any warranty could be a challenging task.

      A Recognizable Approach, With Recognizable Results

      This information was shared by notable Corvette dealer and enthusiast Rick Conti. He pointed out a letter from Chevrolet that will accompany every Corvette ZR1, ZO6, and E-Ray sale for the foreseeable future. The letter outlines the terms of the agreement, which is intended to penalize flippers and complicate their ability to quickly profit from these highly sought-after Corvette models.

      However, this plan seems to do little to genuinely halt flippers. Instead, it complicates the experience for second-hand buyers more than anything else. It does not prevent flippers from acquiring the vehicles initially nor does it stop dealers from imposing exorbitant markups on the 1,064 hp Corvette ZR1.

      What it will do, unfortunately, is detract from the ownership experience for some second-hand buyers. As Chevrolet notes, it's the initial owner’s duty to inform the subsequent owner about this situation.

      Inevitably, some flippers may sell the car without disclosing this information. Consequently, the second owner could be without warranty coverage before they even register it in their home state.

      What Other Solutions Exist?

      The team at CorvetteBlogger proposed an intriguing suggestion: perhaps Chevrolet should introduce 12-month, non-negotiable leases on these models. This would corner flippers and dealers, ensuring that the vehicles go to individuals who genuinely want to drive them rather than flip them. Alternatively, Chevrolet could eliminate the unnecessary middleman by selling directly to buyers, avoiding unnecessary markups and enabling real-time tracking of the cars. It’s something to consider, right?

      Until such changes are made, it appears that Chevrolet's "plan" merely penalizes the wrong individuals while allowing flippers to continue their activities.