GM Loaner Car and $7,500 Tax Credit

Spoke with the dealer about this.

They are adamant that the GM Legal Team has assured them that they are able to sell the car as a previously titled demo/loaner and the purchaser of the demo is eligible for the tax credit.

The IRS code says:

'(d) New qualified plug-in electric drive motor vehicleFor purposes of this section—
(1) In generalThe term “new qualified plug-in electric drive motor vehicle” means a motor vehicle—
(A) the original use of which commences with the taxpayer,
(B) which is acquired for use or lease by the taxpayer and not for resale'

Those two lines seem to conflict with each other. The original use of the vehicle commenced with the dealer placing the car into the service loaner pool. However, the car was acquired for eventual resale because the dealer is selling the loaner car. The dealer has taken the position that 'original use' commenced when it was sold. And they have of course, 'never had issues'.

GM and/or the dealer has already titled the car. They are selling a 'used' title. Semantics aside, has anyone run into this actual situation in real life? The dealer can't produce anything other than 'we see no problems, call the IRS and everyone does this'.

Opinions - massive marketing snafu, or a legitimate gray area?