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BMW faces warranty lawsuit in US

BMW faces warranty lawsuit in US Image

BMW car buyers in the US have filed a class action consumer fraud lawsuit against the manufacturer, which alleges the company sold test-drive cars to consumers under the impression they were getting a brand new vehicle with the appropriate standard warranty.

The New Jersey federal court received the suit and according to a report in the New Jersey Law Journal the putative class is comprised of people across the States who bought a BMW demonstrator version identified as new in the sales contract, within the last six years.

It is an issue that can quite easily occur here in the UK, and what happens in reality is that these customers do not get a four-year warranty, because part of the Car Warranty period has elapsed before they purchase it.

The day of the first retail sale, or the date the car goes in to service as a test-drive vehicle or for other purposes at the dealers, is the day that the new car warranty is initiated, according to the New Jersey Law Journal.

In the lawsuit, the plaintiff has alleged that the company is violating the Federal Trade Commission rules by allowing dealers to sell demonstrators as new vehicles. The rules state that a dealer has to disclose when a vehicle is a demonstrator.

published: 26/10/2012 17:00:01

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