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I forgot about that part regarding that. However both companies have different phone numbers, etc.
Who said anything about the finance company being the customer?
Also I agree with everything else you said apart from them breaking the law about not refunding/replacing. IIRC he got the car...
Consumer law says any warranty should go through the retailer, not the manufacturer. The contract is between retailer and customer. If I was in Spax's shoes the first bit of communication I would of said to go through the retailer.
From what I've read from a number of sources here.
Beemer lost back end, straightened up on the grass, booted it, lost the back end again, Dan had nowhere to go but into the BMW. Happens to the best of them... yeh.