[Ascension]

I was checking the BMW dealerships in California and noticed a brand new 535i sedan with the color combo I was looking for. I found it in their "brand new inventory" with an almost $9,000 discount off MSRP. I offered the internet CA a cash price for the car. He said that before he went to his manager with the offer, that he had to tell me something about the car. Here is his email to me:

"Thank you for your reply. Before I take your offer to the General Sales
Manager, I am not sure if you are aware that this 2010 535 has 1269 miles as
of now (i just verified this). This car is still new with the full 4 year
or 50K warranty not started yet. The reason is this car was once sold,
but buyers were not approved, so we when we got the car back it had 1200
miles."

After I received this info, I withdrew my offer My question is, should the dealership advertise this car as being "brand new," when it clearly is not? How much discount should they offer on a "used car?" They're already offering $9,000 off. I want the car, but not at a new car price. I appreciate any suggestions you have to offer.