I had something similar happen with a Tiguan Sport that I bought a couple years ago. I thought it was brand new (had 100 miles on it), but the dealer had "punched the ticket for it" 6 months prior and it was supposed to be a service loaner vehicle. So it looked like it was sold and because of that the warranty had already started when they punched the ticket, although it was never titled. No one drove/used it as a service vehicle though.
I thought I was buying a brand new car, which it sort of was, but it was actually sold me to as a used car since they had showed it sold (to the dealer) already. They added the CPO warranty though and that extended it another 2yrs/24k miles or whatever.....but still, in hindsight, they should've knocked more off the price since it was sold to me as a "used car." Although it was new, it wasn't in VW's eyes since they sold it to the service department kind of deal.
In your case, it kind of sounds like the same scenario. Have them CPO it for the extra warranty, and see if you can get the price down a little bit too.
You might wanna add the selling price too, of the car itself, since we don't know the taxes/fees situation in your state.
