Time to start recording conversations my friend
its so easy for people now days to say "I didnt say that" as there is no proof
get a little recorder and get some hard evidence to go to the CAB with
as for the "not fit for purpose" thats not exactly true, the bike is now fit for purpose now the mechanical faults have been rectified under warrenty
the paint issue isnt directly a KTM issue, more a sub contracted warrenty issue which is being delt with, am in no way sticking up for the dealer or DM bythe way simply stating what the dealer will say
as for money less depreciation, its something that can be imposed as much as we dislike it, try not to get angry with them (know its hard not to, but will only draw the issue out more)
be firm but polite and get some letters with dates/times etc of faults and conversations so there is writen evidence of the process so far
then if they fail to help out as needed then its time for legal assistance
HTH