GM's C8 resale restriction

[JR410]

Glad that worked out for you. What was the dealership's incentive to do that? I am guessing they made some $ points on the resale also? If you made mondo profit, and they did also, what kind of mad money did the buyer pay to get their hands on your car?

No no, I passed on the offer, I just wanted my car after 15 months of waiting. We did not get into specifics of them getting a cut, my salesman just called up and told me he had buyers willing to pay much more to jump the line. He suggested another buyer received $40k to walk away, that’s lots of quick money, but I really wanted the C8. Besides that may have been a one-off situation.

 

[ABC]

In Canada our dealer required, at the time of delivery, that we sign a form stating we will not re-sell or export the C8 for 6 months.
The dealer said if we did not sign it they would not sell us the car. And said this is GM Canada's policy, not the dealer's.
We never heard about this form prior to picking the car up.

Yet I see several private C8's for sale across Canada that do not appear to be 6 months old.
And people on various forums planning to immediately flip their car for profit. (I read this applies to US-delivery C8s also?)
How is this possible?

I'm not sure how a form like this could be enforceable in court since once it is sold, it is private property.
Has any one else been required to sign this form & what do you think about it?

News to me. I signed nothing like that. Not that I contemplated selling. My dealer did say that if I wanted to sell it come back to them. So I am not sure.

 

[Mr.Corvette]

Carbuff, there has been lots of feedback on this subject so far, but no one mentioned it doesn't apply just to Corvettes. Some mentioned being forced to sign a No Resale Agreement. Some said they didn't. I would encourage those that don't recall signing a form to review their bills of sale under the section that covers Comments, restrictions, limitations and conditions. See if there are comments like "You agree NOT to sell or transfer ownership of this vehicle for a term of 12 months AND 12,000 km." "If so you agree to pay the dealer a sum of $___________." This statement is here to protect the dealer from future repercussions from GM.
Every dealer gets audited at some point. Dealer jackets which contain all the papers for a vehicle like bills of sale, GM Visa rebates,
manufacture rebates, OnStar papers etc. for all vehicles including demos are reviewed for accuracy. Mistakes result in fines to the
dealer by GM. In some cases big fines.
Dealers are required before selling a vehicle to anyone to check and make sure that person is not listed on the "Do Not Sell" Blacklist.
The people on this list are the known "Exporters" and they are placed on this list for life.
If a GM dealer sells to a person on this GM Blacklist they face repercussions from GM such as, full chargeback of all profits on the vehicle that was sold and later exported, (this includes all GM vehicles including Silverado, Escalades and diesel vehicles that are very popular for export) and additional fines. Dealers can also lose future allocation and are not supposed to charge over MSRP for a vehicle.
I know of a situation where a dealer this year was charged a $250,000 fine after selling vehicles that were exported.
To answer you question, if a person was to get sick, lose job or need to move to another country, selling dealers are asking customers to come back to them so they can assist with the sale of that vehicle if you choose not to take it with you.
The blacklist is to prevent the export for profit situation from happening as GM knows every car sent to Canada could be exported
for a profit given our exchange rates.
People have been added to the blacklist this year in Canada for selling their Corvettes and now will never be able to get another.
If your thinking about selling your vehicle in the first 6 months for a non Corvette or the first 12 months for your Corvette, I would encourage everyone to speak to their dealer about the situation if you are under 12,000 km to protect yourselves!

 

[Murray20c8]

There is nothing on my agreement nor did I sign anything like that.

 

[Jack Raccoon!]

Yup. Me too...

 

[Wild]

Nothing like that for my 2020 C8 delivered in Jul/20.

 

[carbuff]

Carbuff, there has been lots of feedback on this subject so far, but no one mentioned it doesn't apply just to Corvettes. Some mentioned being forced to sign a No Resale Agreement. Some said they didn't. I would encourage those that don't recall signing a form to review their bills of sale under the section that covers Comments, restrictions, limitations and conditions. See if there are comments like "You agree NOT to sell or transfer ownership of this vehicle for a term of 12 months AND 12,000 km." "If so you agree to pay the dealer a sum of $___________." This statement is here to protect the dealer from future repercussions from GM.
Every dealer gets audited at some point. Dealer jackets which contain all the papers for a vehicle like bills of sale, GM Visa rebates,
manufacture rebates, OnStar papers etc. for all vehicles including demos are reviewed for accuracy. Mistakes result in fines to the
dealer by GM. In some cases big fines.
Dealers are required before selling a vehicle to anyone to check and make sure that person is not listed on the "Do Not Sell" Blacklist.
The people on this list are the known "Exporters" and they are placed on this list for life.
If a GM dealer sells to a person on this GM Blacklist they face repercussions from GM such as, full chargeback of all profits on the vehicle that was sold and later exported, (this includes all GM vehicles including Silverado, Escalades and diesel vehicles that are very popular for export) and additional fines. Dealers can also lose future allocation and are not supposed to charge over MSRP for a vehicle.
I know of a situation where a dealer this year was charged a $250,000 fine after selling vehicles that were exported.
To answer you question, if a person was to get sick, lose job or need to move to another country, selling dealers are asking customers to come back to them so they can assist with the sale of that vehicle if you choose not to take it with you.
The blacklist is to prevent the export for profit situation from happening as GM knows every car sent to Canada could be exported
for a profit given our exchange rates.
People have been added to the blacklist this year in Canada for selling their Corvettes and now will never be able to get another.
If your thinking about selling your vehicle in the first 6 months for a non Corvette or the first 12 months for your Corvette, I would encourage everyone to speak to their dealer about the situation if you are under 12,000 km to protect yourselves!

Thanks for the details @Mr.Corvette
I have no plans to sell our car, but forcing someone to 12,000KM could mean 4 years for some. For example, I only put on average 3K km/year on our Corvettes. I can understand 6 months, I do not understand 4 years. On a commuter box that averages 25K km/year, it makes sense. It makes zero sense on a Vette. I typically sell before they run out of warranty. That would be GM telling me that I can not sell the car till after warranty has long run out. Makes any sense?

 

[Gilles27]

Thanks for the details @Mr.Corvette
I have no plans to sell our car, but forcing someone to 12,000KM could mean 4 years for some. For example, I only put on average 3K km/year on our Corvettes. I can understand 6 months, I do not understand 4 years. On a commuter box that averages 25K km/year, it makes sense. It makes zero sense on a Vette. I typically sell before they run out of warranty. That would be GM telling me that I can not sell the car till after warranty has long run out. Makes any sense?

I think what he is saying is 12 months or 12 000 km whichever comes first, so essentially after a year of ownership doesn't matter the mileage you can sell it

 

[Mr.Corvette]

I think what he is saying is 12 months or 12 000 km whichever comes first, so essentially after a year of ownership doesn't matter the mileage you can sell it

The GM rules are both not or. I don't believe anyone will have a problem selling their car in Canada after 12 months with under 12,000 km so long as they don't export it. Also for those trading in or selling privately for a Z06 in 2022 or ERay in 2023 with under 12,000 km to recover the sales tax credit, have your dealer handle the sale for you and you will have no issues at all.

 

[Vanguard2001]

No resale restriction in the contract documents for my new 2017 or new 2019. Also checked documents for the new 2020 Cadillac XT5. Very strange that the restriction is not consistent across dealers.

 

[emtae001]

I have imported quite a few vehicles into Canada from the US. Some car companys, Toyota for example will not let you purchase a brand new car in the US for export in to Canada. If this is what GM is referring to then I could undertstand that. If they are saying you are not allowed to sell the car to anyone for a specific amount of time I have to call BS on that one. I just received an allocation from a reputable dealer where I live. I also had my name at another dealership as well. They called me and said " We have a gentleman here who's build just showed up. He is not bailing on the purchase but he's thinking if he can get 20-30 K above MSRP he will sell it. So this was a salesman calling for his customer to try and sell the customers car. Above MSRP and BEFORE he even took it off the lot!

 

[Mr.Corvette]

GM also won't let Canadians purchase US cars to export back to Canada, but you can buy used ones.
I think GM will have a hard time policing sales of cars with under 12,000 km if they are not exported, but
in your example, the dealer has sold the car to the customer and he is now willing to let it go for a profit.
I was also made aware of a similar situation this past summer when looking for a second C8, where the customer
was looking to recover only his purchase price and sales taxes paid as he had to buy the vehicle from that dealer
before being able to sell it. Dealers are not supposed to charge over MSRP or they also face repercussions from GM.

 

[RDA]

In Canada our dealer required, at the time of delivery, that we sign a form stating we will not re-sell or export the C8 for 6 months.
The dealer said if we did not sign it they would not sell us the car. And said this is GM Canada's policy, not the dealer's.
We never heard about this form prior to picking the car up.

Yet I see several private C8's for sale across Canada that do not appear to be 6 months old.
And people on various forums planning to immediately flip their car for profit. (I read this applies to US-delivery C8s also?)
How is this possible?

I'm not sure how a form like this could be enforceable in court since once it is sold, it is private property.
Has any one else been required to sign this form & what do you think about it?

I bought a new GMC Sierra 3500 Denali in 2017. Same thing. They said the pricing structure was different between Canada and the US and that was the reason for the declaration.