April 10, 2007

Hello Tony

I've found your website very helpful. I wish I had found it earlier.

My question is: what does "Factory Demo" mean? How is it used?

I bought a car and was told I got all of the perks, namely a full warranty and service plan, because the car was a "Factory Demo," and was within the BMW family.

I just found out that my warranty and service plan didn't start from the date I bought the car from BMW, but when it came off of the factory floor. I was shocked! "Factory Demo" was used to hook me into believing I was buying a car with all of the perks of a new one.

Buyer beware - I know. But if you could explain how "Factory Demo" is used by car dealers it would greatly help my understanding of how these folks operate and possibly help my small claims court case.

Thank you!

Jennifer J.

Answer:

Hi Jennifer,

"Factory Demo" is another term for "Program Cars." To find out more about "Program Cars" visit my website at: What Are Program Cars?

These cars usually have the remainder of the factory warranty, but the actual factory warranty always starts when the vehicle is actually put into service. The salesman should have informed you of when the warranty started by giving you the original in-service date of the car.

It's like you said: "Buyer Beware." You cannot be too informed when purchasing a car.

All my very best...

Tony Iorio

Additional Comments From Jennifer:

Tony,

THANK YOU. You have been extremely helpful.

I did just check CARFAX and I am the only owner on record! There is no history for the first year and half of the car. CARFAX also suggests my warranty started when I bought the car because I am on the only owner on record. Is that common for "Factory Demos" or "Program Cars?"

Thank you once again.

Jennie

My Answer:

Hi Jennie,

Unless some channel reports to Carfax such as an insurance company, a DMV, etc, Carfax may not have a record on a particular car.

If indeed the dealership has told you the warranty started before you purchased the car then it was put into service by somebody. It is in essence, a used car.

Double check with the dealer. Go to the service department and ask them to look up the original in-service date of the car. They should be able to do that by plugging the serial number of the car into their computer system. If the date is before you bought the car then demand from the car dealer that they tell you the true history of the car.

Tell them you are going to file a complaint with your state's Attorney General's office for misrepresenting the car to you. If they won't give you any satisfaction then by all means file a complaint. file a complaint with the Better Business Bureau too.

As I wrote on my website most so-called "Factory Demos" are indeed rental cars or lease returns. However, in those cases Carfax should have a record of it. I don't know why they don't have a record on this car. Perhaps it was driven by a factory rep or someone working for the dealership in which case the car wouldn't have been titled thereby making you the first official owner.

Usually in cases like this the factory makes some avenue available to the dealer to give a full warranty. Sometimes the dealer has to pay extra for such a concession from the factory. Perhaps the dealer chose not to pay the extra fee, if indeed this is the case. I'm just speculating because truthfully, I am not familiar with how BMW runs their operations. Just trying to give you some ideas to go on.

Take care,

Tony Iorio