When I purchased my cruiser it had very few miles on it (less than 10). I noticed the same thing. The dealer said it was the oil and grease used to protect the parts during manufacturing burring off. The car was not using oil, and the dealers explanation sounded valid. So keeping an eye on the oil, I kept driving. After a couple of weeks the oil smell was gone. Nine thousand plus miles later and no problems other than a tire coming apart.
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