Photo: BMW
BMW USA, like many other manufacturers as a matter of fact, uses demo cars for testing purposes and then sells them to ‘lucky’ customers that get a hefty discount on their purchase. However, some of them were mislead according to the US judiciary system and now BMW has to pay.
To be more precise, in September 2012, Sanjay Saini filed a case after buying a 2011 BMW 335d from a dealership in Sterling, Va. Her claim was that the car was sold to her as ‘new’, but it later came to her knowledge that the four years of Ultimate Warranty coverage started before actually taking hold of the car. As a matter of fact, they had begun the moment the 3er started being used as a demo car.
The case turned into a class-action suit that had over 104,000 members, all of them purchasing cars that were claimed to be new but came with shorter warranties. All of the autos were sold between September 28, 2006, and October 6, 2014.
The settlement stipulates that BMW will be extending the length of its Ultimate Warranty on all demo cars for at least three months and they have to reimburse owners that repaired their cars outside of warranty out of their own pocket (only if those repairs were made within three months of a warranty’s expiration).
That’s not all, though. The aggregate value to the class members of extended warranty coverage was estimated somewhere between $12.2 million and $12.8 million according to Auto News Europe and, on top of all that, BMW also agreed to pay $600,000 for the plaintiff’s attorney fees and litigation costs.
The case turned into a class-action suit that had over 104,000 members, all of them purchasing cars that were claimed to be new but came with shorter warranties. All of the autos were sold between September 28, 2006, and October 6, 2014.
The settlement stipulates that BMW will be extending the length of its Ultimate Warranty on all demo cars for at least three months and they have to reimburse owners that repaired their cars outside of warranty out of their own pocket (only if those repairs were made within three months of a warranty’s expiration).
That’s not all, though. The aggregate value to the class members of extended warranty coverage was estimated somewhere between $12.2 million and $12.8 million according to Auto News Europe and, on top of all that, BMW also agreed to pay $600,000 for the plaintiff’s attorney fees and litigation costs.
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