Question about buying a "Demo" car | Warranty coverages

[Car54]

I'm hoping car sale business people chime in with advice.

This particular BMW was purchased 1 year after it hit the lot, the car racked up 149 miles before it was sold.

I am understanding now that the factory warranty is starting when the car hit the lot and not when it was sold to the first owner. Obviously 1 year less maintenance and warranty is a pretty significant dollar amount.

Is there some misunderstanding or is this some BMW policy? Any advice on how this can be corrected? What documents do I need to plead my case. This information is according to the VIN in the BMW service system.

FYI...this is not my vehicle, but one I'm purchasing.

Thank you!

[SilverBeam]

That is how I understand it too and is one of the reasons why the car is discounted. You may be able to negotiate back in extended coverage.

[Campfamily]

The warranty should start the day the vehicle is first registered. Typically, a dealer demo is not registered; the vehicle is driven using dealer plates without a registration specific to the vehicle. So, if the dealer used the car as a demo for six months, or if it sat unsold, with only test drive miles put on it, the warranty would not begin until the vehicle was sold and then registered to the first owner.

This is how it works in California.....your state may vary!

[Car54]

The car originated in California.

The first two links explain it very well.

http://www.dmv.ca.gov/portal/home/dm...x=0&submit.y=0

They first owner must have signed a disclosure...power of attorney is not acceptable.

Thanks for the responses!

[Car54]

I think Campfire's right according to the links I posted above. I guess it's just coincidence that most cars start their warranty when they're purchased...and bought in the same month they came in.

Another point...what if a car needed work while it sat on the lot? A dealer can't sell itself warranty work right?

[timsev]

When the dealer declares the car a demo, the warranty starts. BMW gives that car an extra 3 months/5k of warranty. Ask the dealer when the warranty ends so you wont be guessing.

When the dealer declares the car a demo, the warranty starts. BMW gives that car an extra 3 months/5k of warranty. Ask the dealer when the warranty ends so you wont be guessing.

[02325]

Exactly^^^^^^^^^

[Car54]

The real issue here is that the owner and I are both understanding the car was sold as new and that it was not a demo. He does not recall signing a disclosure.

Just because it's a year old, does it make it a demo? Demo's usually have thousand or more miles right?

[timsev]

Certain states have different laws regarding disclosure of "demo" status. Most likely, the dealer didn't have him sign anything because a demo is still considered a new car because it's never been titled.

Mileage and age have nothing to do with a car being a "demo."

When the dealer decides the car will be a demo, they remove the car from BMW's inventory on paper. According to BMWNA, the car is sold. In reality though, the car is still for sale and not titled. Dealers do this to take advantage and lock in special incentives that are about to expire. They also do this to hit monthly quotas that BMW sets.

The car can be a demo and only have 5 miles. It just depends on what the car is used for. Here at my dealer, we have about 75 demos. Some of them have no miles. Some of them we employees drive and put miles on. It just depends and the list is constantly changing. We will sell a few demos, then we will mark a few cars as demos at the end of the month to hit quotas if we need to.

[Car54]

When you make them demos do you start the warranty and maintenance?

[timsev]

yes, the warranty and maintenance starts as soon as the car is considered to be a demo. Even if it doesn't have miles on it.

[Critter7r]

Yes, as stated earlier, if a vehicle is actually punched as a 'demo' by a dealer, BMW recognizes this as the "In-Service Date" of the vehicle. However, they also then extend the 4/50 warranty to 4+3months/55,000 miles. The Maintenance coverage does NOT get that same extension.

Are you the one purchasing this vehicle with 149 miles on it? Or did someone else purchase it, drive it and now you will be the second owner at some significantly higher mileage?

(Assuming the former) BMW doesn't allow a vehicle with more than (I think) 500 miles on it to be sold as new. So unless this vehicle was reported to BMW as a demo and then never driven, the warranty should start when you take delivery of it - regardless of tis age.

[Car54]

PO bought it with about 149 miles, I'm buying it at 32k miles. The PO is selling the car claiming warr/maint until 4/2013, but now I'm finding out it's 3/12. I'm not happy about this at all.

[Critter7r]

PM sent.

[Car54]

Further update...the PO sent me all the info...and I now have the car. The buyers order from the dealer is marked "NEW" and no where do I see the car is "DEMO" or used. How can they expect someone who's not a forum junkie to understand that the clock started XXX date? How would an everyday person even get that information?

[Critter7r]

Is the warranty expiration date even shown?

[Car54]

Not on the bill of sale...I'm reading CA law states that a vehicle sold as "demo" is considered USED. BMW added the three months so they consider it USED/DEMO. The dealer buyers order shows as NEW. BMW NA won't do anything as they think it's a dealer issue. Going to call the dealer today.

Now...what's this CA arbitration agreement all about? Any advice as to who to speak with at the dealer? I even have the autotrader ad that shows the car new and the sale advisor.

[SilverBeam]

Just because the law says that demos are considered used doesn't mean they are. The dealerships don't register the cars, it's a loop hole they've discovered. No registration = no way for the DMV to know the car isn't new. As far as the DMV is concerned the car just took a while to sell. If you want a car with the full warranty, don't buy a demo. To me it sounds like you are trying to drink from both sides of the hose. You either get a heavily discounted car, or you get one with all of the protection of a new one.

[Barton45]

You may be able to negotiate back in extended coverage.

[Critter7r]

Just because the law says that demos are considered used doesn't mean they are. The dealerships don't register the cars, it's a loop hole they've discovered. No registration = no way for the DMV to know the car isn't new. As far as the DMV is concerned the car just took a while to sell. If you want a car with the full warranty, don't buy a demo. To me it sounds like you are trying to drink from both sides of the hose. You either get a heavily discounted car, or you get one with all of the protection of a new one.

While this is a nice rational thought process, technically the OP may have a point. However, he being the 2nd owner and purchasing it from a private owner, I doubt the dealer will give him the time of day. Why would they, he's not their customer. I think if he were the purchaser, he'd have more of a leg to stand on.

[Car54]

The PO is eager to help me through this and I know I won't get anywhere on my own...especially since BMW NA is putting it on the dealer. He has calls into the sales advisor so we'll see. <crossed fingers>

Just because the law says that demos are considered used doesn't mean they are. The dealerships don't register the cars, it's a loop hole they've discovered. No registration = no way for the DMV to know the car isn't new. As far as the DMV is concerned the car just took a while to sell. If you want a car with the full warranty, don't buy a demo. To me it sounds like you are trying to drink from both sides of the hose. You either get a heavily discounted car, or you get one with all of the protection of a new one.

I'm not the original owner, but I did buy the car under pretenses that the warranty was from purchase date, not 13 month prior. It would be lazy of me not to pursue this as either the PO is lying that he knew or the dealer did not disclose the car was treated as a demo. Can the dealership have cars on the lot that are still considered unsold, and not in-service?

[prash]

I bought a car like this 18 months ago for my mom. The car was a demo that was driven by the owner of the dealership wife. She drove it once. The rest of the time it was sitting in the show room.

When I talked to the sale person and manager negotiating they were very sweet about it and agreed that they would give me the extra time I lost on the warranty. I think they dealership you buy the car from is very important. I was very happy with how forthcoming they were when I brought up the issue of time left on warranty. They also threw in free wheel/tire insurance as well. When the factory period ends I do intend to extend it for 2 more years.

[Car54]

[SilverBeam]

The PO is eager to help me through this and I know I won't get anywhere on my own...especially since BMW NA is putting it on the dealer. He has calls into the sales advisor so we'll see. <crossed fingers>



I'm not the original owner, but I did buy the car under pretenses that the warranty was from purchase date, not 13 month prior. It would be lazy of me not to pursue this as either the PO is lying that he knew or the dealer did not disclose the car was treated as a demo. Can the dealership have cars on the lot that are still considered unsold, and not in-service?

I understand now, somehow I missed that you were buying it from the original owner.

[Car54]

The final outcome was that the dealer was willing to make a hell of a deal on the maintenance package, less that $1500. Since the car has aftermarket warranty, the one year maintenance was all I really felt down about.

I don't drive enough to cough up more money and probably wouldn't break even with what needed done under maintenance. It was tempting.

Lesson learned...do the history check with BMW...not just carfax.