Skip to content
Do you have adblock enabled?
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(The Drive)   Own a Cadillac Escalade-V and refinance to get a better interest rate? GM Financial will void your warranty   (thedrive.com) divider line
99
    More: Amusing, General Motors, Sales, Chevrolet, Cadillac, Automotive industry, Cadillac Escalade, Ownership, Truck  
•       •       •

2047 clicks; posted to Business » on 29 Jan 2023 at 1:25 AM (8 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



99 Comments     (+0 »)
View Voting Results: Smartest and Funniest


Oldest | « | 1 | 2 | » | Newest | Show all

 
aleister_greynight [TotalFark]
2023-01-28 5:24:28 PM  
And you deserve it for buying a Cadillac.
 
enry [TotalFark]
2023-01-28 6:05:14 PM  
So it had mechanical problems in the first 6 months and Cadillac is refusing to service it?
 
vudukungfu [TotalFark]
2023-01-28 9:47:14 PM  

enry: So it had mechanical problems in the first 6 months and Cadillac is refusing to service it?


But they will void the mmm yeah
 
ecmoRandomNumbers [TotalFark] [OhFark]
2023-01-29 12:55:13 AM  
They're going to need that warranty.
 
fnordfocus [TotalFark]
2023-01-29 1:19:34 AM  

enry: So it had mechanical problems in the first 6 months and Cadillac is refusing to service it?


I've only bought like two brand new cars in my life, but aside from that Takata air bag recall thing, neither needed anything beyond oil changes and filters during the life of the warranty.

But neither of them were from GM.
 
sex_and_drugs_for_ian [BareFark]
2023-01-29 3:11:37 AM  

enry: So it had mechanical problems in the first 6 months and Cadillac is refusing to service it?


They'll service it, just not for free.

The owner jumped ship to another finance company for some reason, and now the warranty is void.
 
dyhchong
2023-01-29 3:40:45 AM  
What the fark does finance have to do with a warranty?

Warranty = We will guarantee your products will last this long
Finance = We will pay for your car upfront, and you can pay us a larger amount over a long period of time
 
padraig
2023-01-29 4:29:56 AM  

dyhchong: What the fark does finance have to do with a warranty?

Warranty = We will guarantee your products will last this long
Finance = We will pay for your car upfront, and you can pay us a larger amount over a long period of time


According to TFA (I know, right ? Who reads those ?), this car is in such high demand that to prevent scalping, buyers agree to not resell it in the first six months.

Apparently, the refinancing got interpreted as a change of ownership.
 
FormlessOne
2023-01-29 5:25:33 AM  
I'm guessing folks are going to rediscover "the right to repair" PDQ.
 
H31N0US
2023-01-29 6:52:17 AM  
"Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?
 
FormlessOne
2023-01-29 6:56:01 AM  

H31N0US: "Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?


Simpin' ain't easy.
 
ZMugg [TotalFark]
2023-01-29 7:15:32 AM  

H31N0US: "Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?



682 HP. 653 lb/ft torque. 0 - 60 >4.4 seconds. $151,215.00.

These numbers appeal to people with more money than sense.
 
IlGreven
2023-01-29 7:16:50 AM  
They pressure you to use their in-house financing company...and all the big names have one; it's how they actually make most of their money.
 
H31N0US
2023-01-29 7:22:23 AM  

ZMugg: H31N0US: "Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?


682 HP. 653 lb/ft torque. 0 - 60 >4.4 seconds. $151,215.00.

These numbers appeal to people with more money than sense.


Yeah, for when you really have to get the kids to softball practice in less than 26 minutes. Also, 15 MPG tops. And it's a Caddy, aka American Jaguar: looks great on the flatbed.
 
caljar
2023-01-29 7:24:15 AM  
Like all of these types of articles, the owners ran into a problem, and an article got written before the company can check the facts, and correct it if it needs to be corrected.
 
ZMugg [TotalFark]
2023-01-29 7:42:27 AM  

H31N0US: ZMugg: H31N0US: "Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?


682 HP. 653 lb/ft torque. 0 - 60 >4.4 seconds. $151,215.00.

These numbers appeal to people with more money than sense.

Yeah, for when you really have to get the kids to softball practice in less than 26 minutes. Also, 15 MPG tops. And it's a Caddy, aka American Jaguar: looks great on the flatbed.


I couldn't agree more.
 
Northern
2023-01-29 7:47:49 AM  

H31N0US: "Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?


These land yachts qualify for a massive business tax deduction loophole meant for farm equipment.  There are only a few vehicles that qualify, I know the Suburban is another.  If I remember, the deduction is 120% of the purchase price.  It's why you see a lot of small business owners and their spouses driving the kids around in them.
Other than that, there is no point unless you are newly rich and think it makes you look classy.
Oh, and the owner who refinanced complaining about a repair bill after forking over $151,000 base plus options, delivery charge, finance charges, loan payments ($2000/month?) sales taxes, excise taxes, and insurance premiums, is rather funny.
Should we start a go fund me?
 
Flowery Twats
2023-01-29 7:57:59 AM  

ZMugg: H31N0US: "Own a Cadillac Escalade-V..."

No. Christ, why in the love of anything remotely rational would I buy a farking Cadillac, let alone an Escalade?


682 HP. 653 lb/ft torque. 0 - 60 >4.4 seconds. $151,215.00.

These numbers appeal to people with more money than sense.


...and they'll keep paying for it every time they stop at a gas pump...which will likely be quite frequently.
 
Unoriginal_Username
2023-01-29 8:30:17 AM  
So rich with you afford a 100k + SUV, but can't get 0% financing?
 
darth sunshine
2023-01-29 8:31:06 AM  
if you're buying a cadillac and aren't paying cash, you shouldn't be buying a cadillac.
 
thornhill
2023-01-29 8:42:42 AM  

dyhchong: What the fark does finance have to do with a warranty?

Warranty = We will guarantee your products will last this long
Finance = We will pay for your car upfront, and you can pay us a larger amount over a long period of time


If only Fark linked to news stories that explain the headlines.
 
H31N0US
2023-01-29 9:04:09 AM  

Northern: These land yachts qualify for a massive business tax deduction loophole meant for farm equipment. There are only a few vehicles that qualify, I know the Suburban is another. If I remember, the deduction is 120% of the purchase price. It's why you see a lot of small business owners and their spouses driving the kids around in them.


So I could turn my house into an LLC, rent it out to myself and have the LLC buy a tax deductible SUV which the LLC then leases out to me?

I mean, I can't blame people for doing that. I can blame the GM lobbyists though. And whoever took their money.

Good to know that as a taxpayer I've helped pay for thousands of obnoxious SUVs.
 
GregInIndy
2023-01-29 9:05:41 AM  
When you buy a car: actually sit there and read every word of the purchase & finance contracts to be certain you know what you're signing. And if you don't like it? Negotiate to change it or @&#%ing walk.

Know what the Fark you're signing. Period. Because that's what you're committed to.

That people have such short attention spans and such a huge case of the gimme-gimmes that they don't do this every time boggles my mind.

Example: Last car I bought recently I was getting a really good deal on because car values were running up drastically and I'd locked in a pre-order most of a year prior. In the purchase contract the dealer put in a clause that said that if I for some reason sold it within the next 12 months for more than I paid for it that they, not me, were entitled to the difference! I only found it by reading the entire contract carefully. When I pointed it out and told them this was a dealbreaker they removed it.

Know what you're committing to. It's what adults do.
 
electricjebus [recently expired TotalFark]
2023-01-29 9:25:43 AM  

IlGreven: They pressure you to use their in-house financing company...and all the big names have one; it's how they actually make most of their money.


*shrugs* My loan is through Toyota Financial, it's a 5 year loan 0.9% interest so the loan itself is actually costing them money given inflation over the last years.
 
mrmopar5287 [TotalFark]
2023-01-29 9:30:28 AM  

IlGreven: They pressure you to use their in-house financing company...and all the big names have one; it's how they actually make most of their money.


Dealership finance guy probably pulled the standard trick and told them GM Financial was the best interest rate they found, and that's a lie. They'll just lie to you and give you something that gives them a kickback.
 
electricjebus [recently expired TotalFark]
2023-01-29 9:32:32 AM  

ZMugg: 682 HP. 653 lb/ft torque. 0 - 60 >4.4 seconds. $151,215.00.

These numbers appeal to people with more money than sense.


Then again, if they refinanced within the first 6 months they probably don't have as much money as they think they do.
 
mrmopar5287 [TotalFark]
2023-01-29 9:37:10 AM  

dyhchong: What the fark does finance have to do with a warranty?


To avoid flipping products in high demand (Escalade-V and Corvette Z06) they tell buyers that any sale within the first 6 months of original ownership voids the warranty.
 
Izunbacol [recently expired TotalFark]
2023-01-29 9:54:23 AM  

H31N0US: Northern: These land yachts qualify for a massive business tax deduction loophole meant for farm equipment. There are only a few vehicles that qualify, I know the Suburban is another. If I remember, the deduction is 120% of the purchase price. It's why you see a lot of small business owners and their spouses driving the kids around in them.

So I could turn my house into an LLC, rent it out to myself and have the LLC buy a tax deductible SUV which the LLC then leases out to me?

I mean, I can't blame people for doing that. I can blame the GM lobbyists though. And whoever took their money.

Good to know that as a taxpayer I've helped pay for thousands of obnoxious SUVs.


Our financial planner actually suggested moving our house and all our assets into a trust, of which we were be the managers and sole beneficiaries... It isn't quite the same thing, but this immediately made me think of it... the idea being that it would be easier for the kids if something happened to us.

I'm curious whether that would have any effect on the homestead exemption.
 
Northern
2023-01-29 9:55:27 AM  

H31N0US: Northern: These land yachts qualify for a massive business tax deduction loophole meant for farm equipment. There are only a few vehicles that qualify, I know the Suburban is another. If I remember, the deduction is 120% of the purchase price. It's why you see a lot of small business owners and their spouses driving the kids around in them.

So I could turn my house into an LLC, rent it out to myself and have the LLC buy a tax deductible SUV which the LLC then leases out to me?

I mean, I can't blame people for doing that. I can blame the GM lobbyists though. And whoever took their money.

Good to know that as a taxpayer I've helped pay for thousands of obnoxious SUVs.


The tax deduction used to be more generous.  My mother was able to deduct a car when she was a visiting nurse taking care of elderly patients.  Then congress got upset that business owners were buying luxury sedans using the same program making them look bad.  Then the US car makers paid congress to compromise to allow large US branded SUVs as the remaining exemption because reasons.
It's also why the Escalade has such garbage quality, it only has to last two years.
 
iamskibibitz
2023-01-29 10:05:42 AM  

IlGreven: They pressure you to use their in-house financing company...and all the big names have one; it's how they actually make most of their money.


Some years ago I got to see the financials for a major dealership and it was shock (at least to me). Basically the margin on new cars was zero. "F-n-I" (financing and insurance), repairs/maintenance, and flipping the trade-ins made SHIAT TONS of money, though.
 
Izunbacol [recently expired TotalFark]
2023-01-29 10:08:18 AM  

dyhchong: What the fark does finance have to do with a warranty?

Warranty = We will guarantee your products will last this long
Finance = We will pay for your car upfront, and you can pay us a larger amount over a long period of time


Yeah, normally rescinding the warranty if you resell the car is something I associate with Kia and Hyundai.  It's smart on their part - if a bigger than average part of your business is subprime, and the cars are going to get Repo'd, these cars won't be well maintained.

fnordfocus: enry: So it had mechanical problems in the first 6 months and Cadillac is refusing to service it?

I've only bought like two brand new cars in my life, but aside from that Takata air bag recall thing, neither needed anything beyond oil changes and filters during the life of the warranty.

But neither of them were from GM.


The only time I've needed warranty service was the one time I bought a GM vehicle.  I'd always thought of warranties as peace of mind, not something you actually use to the point where you know the warranty folks pretty well.  

Never again, Detroit.
 
thornhill
2023-01-29 10:12:03 AM  

H31N0US: Northern: These land yachts qualify for a massive business tax deduction loophole meant for farm equipment. There are only a few vehicles that qualify, I know the Suburban is another. If I remember, the deduction is 120% of the purchase price. It's why you see a lot of small business owners and their spouses driving the kids around in them.

So I could turn my house into an LLC, rent it out to myself and have the LLC buy a tax deductible SUV which the LLC then leases out to me?

I mean, I can't blame people for doing that. I can blame the GM lobbyists though. And whoever took their money.

Good to know that as a taxpayer I've helped pay for thousands of obnoxious SUVs.


While you technically can do that, what you're doing is a legal fiction. If you ever get audited, you're screwed, and no reputable accountant, tax preparer, or auditor will help you file a tax return.

The only way to get away with tax avoidance is to be so rich that it's cost effective for you to hire a huge team of lawyers at the cost of tens of millions of dollars, who can win a war of attrition with state and federal tax enforcement agencies.
 
thornhill
2023-01-29 10:21:55 AM  

darth sunshine: if you're buying a cadillac and aren't paying cash, you shouldn't be buying a cadillac.


Paradoxically, if you're rich and thus likely have good credit, it makes more sense to finance if you can get a low APR than pay with cash because the investment income from the cash will be greater than the interest you pay over the life of the loan. Further, consider the NPV - if the interest rate is low, the value of the cash you pay today will be greater than the value of your installment payments over the next 4 or 5 years.
 
thornhill
2023-01-29 10:22:44 AM  

darth sunshine: if you're buying a cadillac and aren't paying cash, you shouldn't be buying a cadillac.


Paradoxically, if you're rich and thus likely have good credit, it makes more sense to finance if you can get a low APR than pay with cash because the investment income from the cash will be greater than the interest you pay over the life of the loan.

Paying cash only makes sense if the interest rate is high, or if you can use it as leverage to get a lower sales price on the car.
 
GregInIndy
2023-01-29 10:24:32 AM  

Izunbacol: H31N0US: Northern: These land yachts qualify for a massive business tax deduction loophole meant for farm equipment. There are only a few vehicles that qualify, I know the Suburban is another. If I remember, the deduction is 120% of the purchase price. It's why you see a lot of small business owners and their spouses driving the kids around in them.

So I could turn my house into an LLC, rent it out to myself and have the LLC buy a tax deductible SUV which the LLC then leases out to me?

I mean, I can't blame people for doing that. I can blame the GM lobbyists though. And whoever took their money.

Good to know that as a taxpayer I've helped pay for thousands of obnoxious SUVs.

Our financial planner actually suggested moving our house and all our assets into a trust, of which we were be the managers and sole beneficiaries... It isn't quite the same thing, but this immediately made me think of it... the idea being that it would be easier for the kids if something happened to us.

I'm curious whether that would have any effect on the homestead exemption.


Fire your financial planner & go elsewhere.

This BS trust/LLC move is obvious and will not survive an audit. You will get raped by the IRS the second they notice it.
 
thornhill
2023-01-29 10:26:03 AM  

Izunbacol: H31N0US: Northern: These land yachts qualify for a massive business tax deduction loophole meant for farm equipment. There are only a few vehicles that qualify, I know the Suburban is another. If I remember, the deduction is 120% of the purchase price. It's why you see a lot of small business owners and their spouses driving the kids around in them.

So I could turn my house into an LLC, rent it out to myself and have the LLC buy a tax deductible SUV which the LLC then leases out to me?

I mean, I can't blame people for doing that. I can blame the GM lobbyists though. And whoever took their money.

Good to know that as a taxpayer I've helped pay for thousands of obnoxious SUVs.

Our financial planner actually suggested moving our house and all our assets into a trust, of which we were be the managers and sole beneficiaries... It isn't quite the same thing, but this immediately made me think of it... the idea being that it would be easier for the kids if something happened to us.

I'm curious whether that would have any effect on the homestead exemption.


I suspect that was specifically about trying to shield you from capital gains, as well as limit the tax liability for your children should they inherit your assets.
 
mrmopar5287 [TotalFark]
2023-01-29 10:28:55 AM  

Izunbacol: Our financial planner actually suggested moving our house and all our assets into a trust, of which we were be the managers and sole beneficiaries... It isn't quite the same thing, but this immediately made me think of it... the idea being that it would be easier for the kids if something happened to us.


They are probably talking about a Medicaid Asset Protection Trust, where you put all your assets in a trust so they aren't considered to be "your" assets by Medicaid if you need long term care.
 
Izunbacol [recently expired TotalFark]
2023-01-29 10:44:36 AM  

iamskibibitz: IlGreven: They pressure you to use their in-house financing company...and all the big names have one; it's how they actually make most of their money.

Some years ago I got to see the financials for a major dealership and it was shock (at least to me). Basically the margin on new cars was zero. "F-n-I" (financing and insurance), repairs/maintenance, and flipping the trade-ins made SHIAT TONS of money, though.


Yeah, I've heard that before.  It makes me scratch my head when I see calls for the end of the dealership system and having direct sales from manufacturers.  Manufacturers would still need to run the lots, the sales offices, the maintenance bays... all the stuff of a dealership.  Those "dealerships" would all be owned by one entity, and would have no reason to compete with one another.  No "Jefferson Honda won't play ball, I'll try Washington Honda down the road."  Begging for the government to replace competition with a monopoly is a bit odd.

Unless you're pimping for Elon, of course.
 
Izunbacol [recently expired TotalFark]
2023-01-29 10:55:38 AM  

mrmopar5287: Izunbacol: Our financial planner actually suggested moving our house and all our assets into a trust, of which we were be the managers and sole beneficiaries... It isn't quite the same thing, but this immediately made me think of it... the idea being that it would be easier for the kids if something happened to us.

They are probably talking about a Medicaid Asset Protection Trust, where you put all your assets in a trust so they aren't considered to be "your" assets by Medicaid if you need long term care.


No discussion of medicaid - this was purely so the heirs could avoid dealing with probate court.
 
mrmopar5287 [TotalFark]
2023-01-29 10:57:54 AM  

Izunbacol: No discussion of medicaid - this was purely so the heirs could avoid dealing with probate court.


OK, and that's usually a pretty common thing. It avoids arguments about what a will says or who has an interest in what assets, and avoids going through probate. If assets are in a trust and it's spelled out who inherits the assets, it's quick and easy.
 
mrmopar5287 [TotalFark]
2023-01-29 10:59:31 AM  

padraig: Apparently, the refinancing got interpreted as a change of ownership.


Don't put it past them to be doing it out of spite. Someone in the finance department might just be a huge butthole and did some computer stuff to flag the warranty on purpose, just to fark with them.
 
mrmopar5287 [TotalFark]
2023-01-29 11:01:55 AM  

caljar: an article got written before the company can check the facts, and correct it if it needs to be corrected.


I couldn't link to the original article: https://gmauthority.com/blog/2023/01/cadillac-escalade-v-owner-gets-warranty-voided-after-refinancing-vehicle/

The dealer that took in the reader's Cadillac Escalade-V has since reached out to GM/Cadillac for guidance. As of this writing, a week has passed without a resolution from either GM or the dealer. The customer tells us they have been chasing the dealer who, in turn, has been chasing GM, but the end result is so far the same. According to the dealer, GM's system says this particular vehicle's warranty is blocked due to non-retention.

So it was going on for over a week when the article went up on GM Authority. A week and no resolution - dealer says the warranty is blocked in the GM computers and no answer from GM as to why this happened.
 
austerity101
2023-01-29 11:22:54 AM  

Unoriginal_Username: So rich with you afford a 100k + SUV, but can't get 0% financing?


Rich people are often weirdly cheap.
 
Periscopes Down
2023-01-29 11:29:54 AM  
The fact that anyone can penalize you for selling your own asset is so incredibly stupid.

There are a million reasons why someone would sell a car in a short amount of time that wouldn't be for flipping purposes.
 
ThighsofGlory
2023-01-29 11:38:43 AM  

padraig: dyhchong: What the fark does finance have to do with a warranty?

Warranty = We will guarantee your products will last this long
Finance = We will pay for your car upfront, and you can pay us a larger amount over a long period of time

According to TFA (I know, right ? Who reads those ?), this car is in such high demand that to prevent scalping, buyers agree to not resell it in the first six months.

Apparently, the refinancing got interpreted as a change of ownership.


He shouldn't have put it on his Synchrony.
 
grimlock1972
2023-01-29 11:51:09 AM  
Me thinks they simply used  the buyer paying off the loan their outfit financed for the vehicle as the primary indicator of a change in ownership  with no extra step[s to verify that it had actually be sold and not just refinanced.

It is also potentially possible somewhere hidden in the legalese there is a clause requiring the car not be refinanced with in the warranty period.
 
mrmopar5287 [TotalFark]
2023-01-29 12:00:01 PM  

grimlock1972: Me thinks they simply used  the buyer paying off the loan their outfit financed for the vehicle as the primary indicator of a change in ownership  with no extra step[s to verify that it had actually be sold and not just refinanced.


This warranty blocking is a new thing for GM with the three examples of in-demand vehicles (Hummer EV, Corvette Z06, and Escalade-V). Seems like maybe they have a computer programmed to automatically block warranties if something is triggered within the first 6 months and that thing in the computer is malfunctioning because they didn't think it all the way through.

grimlock1972: It is also potentially possible somewhere hidden in the legalese there is a clause requiring the car not be refinanced with in the warranty period.


The prohibitions on refinancing are usually something like a rebate or financial incentive, and there is a minimum period of time you have to hold the financing with one entity. A friend of mine bought a Kia Telluride and was angry at the dealership over some of the typical markup items they added to the vehicle despite him telling them he didn't want the things. There was some financial deal and he had to keep the vehicle financed with the dealership for 60 days, and on day 61 he switched it to his own bank out of spite.

The Escalade-V has no financial incentives (no rebates) because it's selling for MSRP or higher. There should be no penalties for refinancing if the buyer wants to do that.
 
cefm
2023-01-29 12:08:57 PM  
So it's a piece of crap car from a piece of crap manufacturer.
 
sirrerun
2023-01-29 12:27:41 PM  

FormlessOne: I'm guessing folks are going to rediscover "the right to repair" PDQ.


This is not a rtr issue it's a matter of how the repairs are paid for.
 
scanman61
2023-01-29 1:02:56 PM  

GregInIndy: Example: Last car I bought recently I was getting a really good deal on because car values were running up drastically and I'd locked in a pre-order most of a year prior. In the purchase contract the dealer put in a clause that said that if I for some reason sold it within the next 12 months for more than I paid for it that they, not me, were entitled to the difference! I only found it by reading the entire contract carefully. When I pointed it out and told them this was a dealbreaker they removed it.


Cool story, bro.

We all know the dealer would never just say "You're going to walk?   Well, bye....we'll just sell it to the next person at the new higher price."
 
Displayed 50 of 99 comments


Oldest | « | 1 | 2 | » | Newest | Show all


View Voting Results: Smartest and Funniest

Redisplay/refresh comments
This thread is closed to new comments.

Continue Farking

If you like these links, you'll love

TotalFark

$10 a month since 19 aught diddly.

learn more | sign up
On Twitter

  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.