I may have read your post wrong
but are you saying....
The car does not pass, BJ pays you for the car and keeps it, they plan on selling it at Scottsdale in Feb?
If that is the case, it sounds to me there is some funny business going on there and they think they can make a good amount on your car.
If they are running it back through and you get the cash, that is a different story.
I have never heard of a car not passing and the state not giving you the opportunity to fix the problem and re-test.
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