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2010 2011 BMW 5 Series Forum F10 BMW 5-Series (F10) Forums General 5-Series Sedan and Wagon (F10 / F11) Forum HELP!! New car turns out to be a Demo
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      11-06-2014, 02:48 PM   #1
4MULA_1
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HELP!! New car turns out to be a Demo

I had placed an order for a ED F80, but I got a great deal on a new 550i, so I decided to go with the 550i. I was under the impression that the car was a brand new car. It was listed on the dealers site as a new one, but it did have 192 miles on it. I asked my sales lady about the extra miles and she said that it was just from test drives and that this is a brand new car.

I got the car early Oct, but I had to drop it off for service last week. When I dropped the car off for service, the service adviser looked puzzled when I told him that I had purchased the car brand new a couple of weeks back. He said you bought this new? I said yeah...Then he revealed to me that the car had an in service date of June 2014, which means that the cars warranty would be up in June of 2018, when I had purchased it in Oct.

I sent a polite email to my sales lady and asked for an explanation to why my in service date was in June. She forwarded my email to the sales manager who reached out to me and explained the story as follows:
The car was originally coded in as a demo vehicle, but it was never used as a demo. He also mentioned that the car was never sold to anyone else and that I'm the first owner. He tried to explain to me that this works out in my favor since when a car is coded in as a demo that I get 5K extra miles on the warranty which makes it go from 50K to 55K, and also adds 3 months of coverage after the first in service date. He says that the original in service date was June 30th, with 3 months added on that pushes it to Sept 30th 2018, which is 8 days shy from my full 4 years of warranty.

My question is, if you guys were in my shoes, what would you guy ask for? Do you think its okay for them to hide the fact that this car was "coded in as a demo" If I had not gone to that new service guy I might've never known about this till later. Should I believe his story about being coded in as a demo? Would you ask for anything extra? try to get money back or even try to get out of the car? Anyone an expert in law, is this okay for a dealer to hide this from me? In all honesty if I had known about this before I would've asked for more money off, or I might've not bought this car all together. I appreciate all your input.
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      11-06-2014, 03:17 PM   #2
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the 550 is a common model and most dealers have several in stock. did you just get a great deal on that exact car? or any 550 for that matter? cause it seems odd that anyone would purchase a brand new car, esp bmw, with 192 miles on it. i wouldn't touch anything with more than 19 miles on it if i was buying new, especially. also 192 miles worth of test drives is a ton. was this a last year model sitting on the lot for a long time? if so, and you can assume 5 miles average test drive, that car would have been test driven over thirty times.
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      11-06-2014, 03:39 PM   #3
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Hard to ask for anything since they are giving you the extended warranty for a few months and miles. You had to know it was driven when you saw 192 miles on it.
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      11-06-2014, 03:42 PM   #4
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You could of course kick up a fuss, BUT the car had almost no miles on it and you've got the extension of the OEM warranty, so if you love the car I wouldn't worry at all. This does not hurt at trade-in re: depreciation.
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      11-06-2014, 03:42 PM   #5
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I did get a great deal on this specific one. The deals are only on 2014 models and dealers are trying to move them. This dealer had two 550's in stock which were similarly priced. The other car didn't have as many miles, but I liked the options on the one I got over the other car.
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      11-06-2014, 03:49 PM   #6
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If you didn't get an amazing deal on the car return it. It was clearly test driven, a lot.

I don't think there is anything wrong with buying a demo car as long as you get a substantial amount off the price AND you know the car was a demo.

Overall this sounds sketchy to me since the dealer didn't disclose it was a demo up front, and I would return it just to inconvenience them at this point.

Go to a different dealer and ED an F80, you will have a more performance oriented car, an awesome trip to Europe and the peace of mind that your car is actually brand new.
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      11-06-2014, 03:59 PM   #7
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I am confused- you bought the car with 192 miles and was under the impression that it was from customer test drives.

Then you found out it was "coded" as a demo, whatever that means.

I agree, something sounds a little shady.. like info may have been witheld from you but you have the full warranty. If you got a great deal I wouldnt go nuts over it.
What is the difference between a demo car and a car test driven for 192 miles?

What I would do is get an order in for the F80!!
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      11-06-2014, 04:00 PM   #8
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When you signed the papers with the Finance person they would have pointed out to you the mileage and you would have signed papers stating that mileage. If it wasn't an issue to you at that point, then why worry now? Enjoy the car.
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      11-06-2014, 04:19 PM   #9
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      11-06-2014, 04:23 PM   #10
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I appreciate all of ya'll's input. My issue is not with the mileage. I knew the mileage when I purchased the car and I was and still am okay with it. My issue is that they hid the part about it been a demo car. Had I known that, I would've gone for the other car or at least asked for another 2-3K off. Also how would I verify that their story is true?
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      11-06-2014, 04:26 PM   #11
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I don't understand at all where you were misled.

It had 192 miles. (that is like 1/6 of the way to break in). You were told it was from 'test drives'. How does that say anything other than "demo"? How could you have thought anything other than that it was 192 miles from people demo-ing/test driving it?

You have all the benefits of brand new (still getting all but 8 days of a 4 year warranty and more mileage).

You paid what you agreed to pay, presumably (in your mind) taking into account the 192 miles of test drives.

In what way are you missing anything or in what way did you not get precisely what you bargained for?

Sorry, I don't see the dealership did anything wrong here - unless I am missing something.
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      11-06-2014, 04:36 PM   #12
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When a car is a demo its not the same as miles from a test drive. If those were test drive miles, the warranty would not start till the day I purchased it. Usually if a car is a demo they would let you know up front. I was mislead into believing that this was a new car when its not.

A demo car is one that someone from the dealership drives around for a while as their daily car could be the GM, one of the managers, or even any of the sales people. My issue is not the miles, my issue is that it was never communicated to me that the cars warranty started back in June.

Also in the service advisers system it shows that the warranty will be up in June of 2018 which could mean that the sales manger is just lying to me. I have to verify that his story is accurate before I'm okay with keeping the car.

Quote:
Originally Posted by myzmak View Post
I don't understand at all where you were misled.

It had 192 miles. (that is like 1/6 of the way to break in). You were told it was from 'test drives'. How does that say anything other than "demo"? How could you have thought anything other than that it was 192 miles from people demo-ing/test driving it?

You have all the benefits of brand new (still getting all but 8 days of a 4 year warranty and more mileage).

You paid what you agreed to pay, presumably (in your mind) taking into account the 192 miles of test drives.

In what way are you missing anything or in what way did you not get precisely what you bargained for?

Sorry, I don't see the dealership did anything wrong here - unless I am missing something.
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      11-06-2014, 05:02 PM   #13
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Quote:
Originally Posted by 4MULA_1 View Post
When a car is a demo its not the same as miles from a test drive. If those were test drive miles, the warranty would not start till the day I purchased it. Usually if a car is a demo they would let you know up front. I was mislead into believing that this was a new car when its not.

A demo car is one that someone from the dealership drives around for a while as their daily car could be the GM, one of the managers, or even any of the sales people. My issue is not the miles, my issue is that it was never communicated to me that the cars warranty started back in June.

Also in the service advisers system it shows that the warranty will be up in June of 2018 which could mean that the sales manger is just lying to me. I have to verify that his story is accurate before I'm okay with keeping the car.
I was going on the assumption (since it wasn't questioned in your OP) that what you were told about the warranty (you get an extra 3 months, which basically gives you the full meal deal) was true.

If that is so, your loss is essentially nil because you have received what you bargained for (less 8 days).

Maybe a judge thinks you have a case, but over 8 days, I wouldn't bother and most judges would probably wonder what in god's name you were doing in the courtroom over a week of warranty.

(If it were over 3 months, I probably wouldn't bother but would try to kick up a bit of a fuss to see if they give you something as compensation - money, winter wheels, or whatever)
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      11-06-2014, 05:08 PM   #14
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Was the car every titled before you bought it?
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      11-06-2014, 05:29 PM   #15
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Was the car every titled before you bought it?
Check your finance docs and/or title. There should specify there if the car is new or used.
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      11-06-2014, 06:19 PM   #16
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      11-06-2014, 11:57 PM   #17
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Quote:
Originally Posted by thebishman
You could of course kick up a fuss, BUT the car had almost no miles on it and you've got the extension of the OEM warranty, so if you love the car I wouldn't worry at all. This does not hurt at trade-in re: depreciation.
Bish
Great point. Without more, enjoy the car. You're stressing out and ruining the best period of bimmer ownership.

Yes, it's tough to find out you were duped and your old lady wasn't really the virgin she claimed to be.

Just play along. You can get her back by pumping her hard in the twistys.

Lesson learned. Move on.
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      11-07-2014, 08:33 AM   #18
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Quote:
Originally Posted by 4MULA_1 View Post
When a car is a demo its not the same as miles from a test drive. If those were test drive miles, the warranty would not start till the day I purchased it. Usually if a car is a demo they would let you know up front. I was mislead into believing that this was a new car when its not.

A demo car is one that someone from the dealership drives around for a while as their daily car could be the GM, one of the managers, or even any of the sales people. My issue is not the miles, my issue is that it was never communicated to me that the cars warranty started back in June.

Also in the service advisers system it shows that the warranty will be up in June of 2018 which could mean that the sales manger is just lying to me. I have to verify that his story is accurate before I'm okay with keeping the car.
Some dealers will use manager's car for test drive or even loaners to customers. Was the car register in June? If so, that makes you the second owner and your car used. If it hasn't been register when you bought it, the warranty should not have started in June. Try asking for a 1 year extended BMW platinum warranty from the dealer instead of taking their word for it you have the extra 3 month of warranty.
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      11-07-2014, 09:15 AM   #19
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Quote:
Originally Posted by BMWrules7 View Post
Great point. Without more, enjoy the car. You're stressing out and ruining the best period of bimmer ownership.

Lesson learned. Move on.
Could not agree more, you're driving yourself crazy over (in my opinion) not a big deal.

Try to "hit reset" move on and enjoy the car, perhaps talk to the dealer and have them give you some free stuff thrown into a deal, but honestly, not a huge deal.
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      11-07-2014, 10:09 AM   #20
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Quote:
Originally Posted by ES_TRADER View Post
the 550 is a common model and most dealers have several in stock.
Wish they were common here. Not too many $100,000+ cars are.
Even 520i are scarce. 320i on the other hand ....
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      11-07-2014, 11:03 AM   #21
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I would want documented evidence of the 5k and three months and if I got those would be happy to keep the car as if you have these there's no real impact on you over and above a freshly ordered car
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      11-07-2014, 11:27 AM   #22
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The 192 miles is most likely a result of the car being a dealer trade. The car was probably driven from another dealer to yours to be exchanged for another car. This is very common as it is much cheaper to hire someone to drive the car than to get a tow truck.

As for what a "demo" is, it is just a status of the car in the dealership inventory. New cars that are in a dealer's possession are "leased" to them by BMW, as the dealers do not pay for each and every car BMW sends to them upfront. There's a rule that if a car is not sold within a X amount of time, BMW would start charging the dealer for holding onto that car. To avoid these charges, dealers would simply purchase these cars themselves and mark them as "demo" cars even though they're not used for any demo purposes. They are sold as new as usual and carries the same standard warranty and maintenance.
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