[chassis]

I don't see a fake sale when title legally transfers from one party (BMW) to another (the dealer). The dealer is buying the vehicle from BMW. This is the "punching" transaction. Do you agree that this is how the transaction unfolds?

So far in this thread no securities statute transgression has been identified.

[aerostar]

I see nothing wrong with it.

Dealer sells car as CPO after using it as new.

Investors need to take both CPO sales AND new car sales into account when figuring out true revenue. Just makes the math a little more complicated.

[GenXer]

I bought two of those "punched" cars this year with a $15k-$20K discount. I see nothing wrong with this practice either. It benefits the consumers. You get better than new warranty and you can still add maintenance contract for very little cost.

If anything, they need to do more of this practice to the limit of the law.

[bucketfoot]

Originally Posted by chassis

I don't see a fake sale when title legally transfers from one party (BMW) to another (the dealer). The dealer is buying the vehicle from BMW. This is the "punching" transaction. Do you agree that this is how the transaction unfolds?

So far in this thread no securities statute transgression has been identified.

What I have been told by people in the BMW fold is that US BMW dealerships own all of their inventory. They decided what models, colors, features etc. they want in their vehicles and order it from the factory. At the time of receipt the dealership takes ownership.

Thus punching is not the dealer buying from BMW, but the dealer buying from itself.

Now I honestly don't know that this changes anything in scheme of things. I see nothing wrong with the dealer buying vehicles from itself for dealership use and then re-selling them as some form of a used vehicle. In doing so the only place that it makes sense to log the "new" sale is when the dealer purchases it from themselves.

[chassis]

Agree bucketfoot. This suggests the article in the original post is clickbait because so far in this thread there has been nothing substantial brought forward.