BMW named in class action over sale of demo vehicles

BMW

The class action complaint was brought to “remedy BMW’s corporate policy of improperly selling demonstration vehicles (“demos”) as new, which results in Plaintiff and Class members being cheated out of valuable warranty coverage for their BMW automobiles.”

BMW provides an express warranty with four years of no cost maintenance and repair.  According to BMW, this means that consumers pay for “nothing but gas and tires.” However, BMW also has a corporate policy that requires its dealerships to purchase thousands of demo vehicles to bolster BMW sales numbers. The result is that dealer floors are flooded with demo cars that BMW directs its dealerships to sell as new without disclosure of this fact to consumers.

As alleged, BMW’s corporate policy of selling demo vehicles as new causes Plaintiff and the putative Class herein direct pecuniary loss because BMW’s warranty begins to accrue on the date of sale to a consumer for new cars, but on the date of sale to a dealer for demo cars. When demo vehicles are sold as “new” to unsuspecting consumers, they necessarily come with less than four years of the warranty coverage promised by BMW.

Class: All consumers within the United States, who at any time after September 28, 2006, purchased a BMW demonstration vehicle that was identified in the contract of sale as “new.”

Read the complaint: Complaint


Dennis L. said
1180 days ago
Ditto I also purchased a BMW, told as new, but a DEMO only to find out layer that the 4 year warranty didn't start when I bought it, but a year earlier.


Sandra A. said
977 days ago
Same Here - Miami, bought a BMW in march 2011 advised "First Owner" - Ultimate Warranty 4 years or 50,000 miles. Took car in 2nd week in November and was advised the warranty had expired in July 2014 when we did not own the vehicle until March 2011 and expiration should be March 28 2015. Repairs should be covered under warranty. Car has less than 37,000 miles.


Sandra A. said
977 days ago
Same Here - Miami, bought a BMW in march 2011 advised "First Owner" - Ultimate Warranty 4 years or 50,000 miles. Took car in 2nd week in November and was advised the warranty had expired in July 2014 when we did not own the vehicle until March 2011 and expiration should be March 28 2015. Repairs should be covered under warranty. Car has less than 37,000 miles.


Christopher F. said
746 days ago
I need to review this more. I bought a "one year old" 2010 BMW in 2015. One year old because it only had 15k miles on it. The car fax shows the car sitting in a dealership for 3 years. In 2014, the car was sold, maybe as new, then I bought in 2015. But now the warranty is listed as expired because it was only 4 year, expiring in 2014. But then, they tell me I have a service warranty until 2016 covering brakes and oil. Weird.

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