Join Date: Feb 2018
Location: Northern Virginia
I think you have every right to refuse this bike and require them to provide you a new one, or get them to refund you and walk away.
At which point, they'll replace the scuffed bits and put it back on the floor at full list. "New" is usually defined as not previously having been titled.
If you have seen the bike post drop and the damage appears to be cosmetic, I wouldn't worry (I'd be annoyed, but I wouldn't worry). The profit margin on this bike is almost non-existent, so I wouldn't expect any significant discount - the parts & labor to restore the bike have already eaten into that margin.
I would, however, take it for a significant test ride before buying just to make sure that everything was working properly and the bike tracks straight (handlebars should be perpendicular to the long axis. If you can, ride straight through a puddle and see if you leave one or two wet tracks.
The damage that you described appears to be in keeping with a low speed drop - so further damage isn't likely.
2018 BMW G310GS
2013 Triumph Tiger Explorer
1986 Yamaha SRX-6