GM's not looking so good on this

[Wild one]

Now this is a new one on me,but GM isn't looking so good on this one.

Cadillac Voids Warranty After Escalade-V Owner Refinances Car

A Cadillac Escalade-V owner has apparently voided the warranty on his car after refinancing it at a lower interest rate.

carbuzz.com

 

[JHoward]

Yeah, this is also new to me. The owner resolving this issue with GM isn't going to be easy.

 

[GTyankee]

When you finance a vehicle, who is the primary owner ?
The Finance Company or the Borrower ?

The Finance company holds the title

 

[JHoward]

The Finance company holds the title

... and the "borrower" gets to drive the vehicle as long as monthly payments are made.

 

[Wild one]

When you finance a vehicle, who is the primary owner ?
The Finance Company or the Borrower ?

The Finance company holds the title

That's beside the point.This is an owner finding a better interest rate either through his bank or a credit union.GM doesn't own the vehicle their finance company might hold the title but the actual manfacture doesn't,so to cancel the owners warrenty is a bit out of what i think GM can legally do.
It's tough to fight a manufacture'r and their lawyers,but if you can get this complaint in front of a judge,i think GM will be covering his legal costs,as i can't see a court allowing this to happen.Just my opinion though

 

[GTyankee]

I do agree 100%
I was just bringing up the possibility of their twisted thinking

 

[GlennRH]

Now this is a new one on me,but GM isn't looking so good on this one.

Cadillac Voids Warranty After Escalade-V Owner Refinances Car

A Cadillac Escalade-V owner has apparently voided the warranty on his car after refinancing it at a lower interest rate.

carbuzz.com

I think the bad feelings this will generate far outweigh any gain GM had hoped to realize.

 

[gofishn]

When you finance a vehicle, who is the primary owner ?
The Finance Company or the Borrower ?

The Finance company holds the title

Regardless of the type of property involved, the Buyer is the legal property owner, until he misses enough payments, to be in violation of his financial agreemnt, thus allowing the Financier to take legal possession of the property. Even then, dependent on the typeof property, the orignal legal owner may still have Rights to the property, the Financier may not be able to dispose of the property and recoup his investment, until yet another time period has pass, that would allow the original Owner to fulfill the financial Contract.

Homes comes to mind. In Iowa, one can repossess but cannot sell , for one year, during which the Orignal Owner h as an opportunity to repay the laon, with fees, and retain possession of his home. Some folks buy those home sup, as an investment and do not care either way. Get paid for the loan and fees or repossess and sell it for a profit.

Either way, money is made at a nice rate of return.


Getting to what GM is attempting.

Highly doubt it is legal. GM is simply the manufacturer. Once the vehicle is actually sold, they no longer have an interest, of any kind. The warranty is one the vehicle and there are federal mandates involved. VOiding the warranty for perceived, after teh sale, violations is akin to taking ones ball home, except it is no longer ones ball.

 

[Dean2]

That has to qualify as one of the stupidest, bone head moves in recent memory by a large corporation. Whoever at GM made this decision needs to be fired on the spot. The bad press GM is getting over something this insignificant is truly hard to believe. They can't make it stick, they look like idiots for even trying it and they will lose thousands of sales from buyers worried the GM warranty isn't worth the paper it is printed on. Real marketing genius you GM boys.

 

[KansasArt]

Regardless of the type of property involved, the Buyer is the legal property owner, until he misses enough payments, to be in violation of his financial agreemnt, thus allowing the Financier to take legal possession of the property. Even then, dependent on the typeof property, the orignal legal owner may still have Rights to the property, the Financier may not be able to dispose of the property and recoup his investment, until yet another time period has pass, that would allow the original Owner to fulfill the financial Contract.

Homes comes to mind. In Iowa, one can repossess but cannot sell , for one year, during which the Orignal Owner h as an opportunity to repay the laon, with fees, and retain possession of his home. Some folks buy those home sup, as an investment and do not care either way. Get paid for the loan and fees or repossess and sell it for a profit.

Either way, money is made at a nice rate of return.


Getting to what GM is attempting.

Highly doubt it is legal. GM is simply the manufacturer. Once the vehicle is actually sold, they no longer have an interest, of any kind. The warranty is one the vehicle and there are federal mandates involved. VOiding the warranty for perceived, after teh sale, violations is akin to taking ones ball home, except it is no longer ones ball.

Homes & cars are apples & oranges. One is real property, the other is personal property. Laws are vastly different. And vary from state to state. (In the US anyways) But it sure sucks for this guy. I hope the bad press GM suffers hurts them in the pocket book. But in the end I doubt it. They have more lawyers than you can shake a stick at. And I’m sure they reviewed this every which from Sunday before making this decision.