BMW Sells Demo Cars with Incorrect Buyer Warranty

Automaker BMW sold test-drive cars to consumers who thought they were purchasing new vehicles with a standard warranty period, alleges a class action consumer fraud lawsuit filed in New Jersey federal court by BMW customers.

According to a report in the New Jersey Law Journal (subscription required), the putative class is comprised of people nationwide who bought a BMW demo vehicle identified in the sales contract as new within the past six years. However, these buyers do not get a new car’s four-year warranty since part of the warranty period has elapsed even before they buy the car.

BMW’s new car warranty is pegged to the day of the first retail sale or the date the car goes into service at the dealer as a test-drive vehicle or for other purposes, writes the New Jersey Law Journal.

The plaintiff has alleged that the company allows dealers to sell demos as new in violation of the Federal Trade Commission (FTC) rules, which require the dealer to disclose the vehicle is a demo.

BMW is also alleged to be selling demos at discounted prices to dealers to further the practice.

The complaint asserts claims for breach of contract, unjust enrichment, and violation of the New Jersey Consumer Fraud Act, according to theNew Jersey Law Journal.

If you or a loved one has been harmed by consumer fraud, contact Sokolove Law today for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you.

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