Five Nissan dealerships in New York face repercussions after the New York Attorney General’s office discovered these dealerships allegedly overcharged 1,138 customers who initially leased vehicles.
After customers complained, authorities conducted an investigation that uncovered dealerships frequently adding undisclosed “junk fees” and inflating the price of vehicles between 2020 and 2023. The dealerships are now facing penalties and refunds totaling $1.9 million.
The dealerships in question are:
- Baron Nissan in Greenvale,
- Nissan of Westbury,
- Nissan of Kings in Brooklyn,
- Nissan of Queens,
- And Nissan of Staten Island.
Authorities discovered that these dealerships overcharged consumers “substantially” and sent them “deceptive invoices.”
Moreover, the investigation revealed that the dealerships had inflated the value of the vehicles at the end of the lease contracts by “misrepresenting illegal upcharges as government fees.” For example, customers paid $500 for a $50 title cost and $300 for a $37 state inspection fee. Additionally, this overcharging on an $18,000 vehicle sometimes reached up to $7,000.
However, the dealerships are set to pay $340,000 in civil fines in addition to $1.6 million in restitution. The exact amount allotted to each dealer will be decided based on the number of overcharged consumers and the “pervasiveness and severity” of the overcharging.
The dealerships have already started issuing checks to their customers, returning the entire amount of the overcharge. They have also promised to audit every lease agreement from the beginning of the investigation and to issue further refunds if needed.
Letitia James, the attorney general of New York, said, “Ignoring agreements and adding bogus fees harms New York consumers. These auto dealerships were enriching themselves at the expense of hardworking New Yorkers attempting to live their everyday lives, run errands, work, and take their kids to school.”
Authorities released the information about these dealerships shortly after accusing a Nissan dealer based in Connecticut of defrauding unsuspecting clients by withholding payments.
