Wow, well I'm really sorry about the experience you're having.
I think that the customer service rep might have been misinformed when he told you the "tunes" will work on your car when you purchased it used from a different owner. What he MEANT was that the device is able to be used on any 96-2011 Mustang if the previous owner had returned his vehicle back to stock. You would still need custom tunes drawn up.
However, I think the Free Tunes for Life program is pretty easily explainable. On top of that, there's a ton of value in it. It's FREE TUNES for the entire time that YOU own that tuner/vehicle combination. If you get a new vehicle, not included. If you sell the programmer and someone else buys it, not included. However, there are people who have gotten over 20 tunes for us and literally built an entire car without paying for tuning, ever! They bought the programmer (which comes with tunes for free) and then bought a CAI, then headers, then delete plates, then cams, then a manifold, then GT500 fuel system, then a supercharger, then a forged bottom end, then re-pullied. About 1/3 of that stuff wasn't even purchased from us. That's right, we're the only company to update your tunes for free NO MATTER WHERE THE MODS WERE PURCHASED! Of course, with out price match policy and our forums discount, we would hope that you purchase from us, but it's another benefit of the program.
You can purchase a pack of 3 tunes for $50, but it's not going to help you out when you need them updated. You order a pack of 3 tunes for $150 with the free tunes for life program, and you're good to go.
Our policy is more lenient than ANY of our competitors.
Either way, I'm sorry you felt misled. All of the contingencies of the program are listed right on our programmers page or our free tunes for life page. It tells what we wont tune for, and what will make the free tunes for life expire.
Let me know if you have absolutely any questions, whatsoever. You can also call Bama. They're here in the building Monday-Friday from 9AM-5:30PM EST at 888.226.9764.