On the Dash:
- Two Mount Kisco dealerships will refund more than $1 million and pay $700,000 in penalties.
- The stores charged a 2% “sales commission” that paid no salesperson and was optional.
- Customers charged after May 2022 can claim refunds, and totals could reach millions.
New York Attorney General Letitia James announced that two Mount Kisco dealerships will refund more than $1 million to buyers, with the settlement covering DARCARS Lexus and DARCARS BMW. According to the New York Attorney General’s Office, both stores charged a 2% fee labeled as a sales commission.
The stores will also pay $700,000 in penalties. The dealerships neither admitted nor denied the findings, Daily Voice reported, citing the settlement document.
AG: The ‘commission’ never reached salespeople
The fee never went to the employee who made the sale, the office found. Investigators said the charge was optional and gave buyers no benefit.
DARCARS Lexus began charging the fee in October 2021, and DARCARS BMW started in August 2022. The office opened its investigation in February 2022. A customer had complained about a sales commission charge of more than $700 at DARCARS Lexus. While both stores printed the fee as a line in their sales and lease agreements said the fee was not required by law, the stores never told customers it was voluntary, according to the AG’s office.
Customers who asked about the charge received conflicting explanations. They heard it was a standard dealer fee or that it paid their salesperson, and the AG’s office said both were false. Additionally, website prices left out the fee, which made the stores look competitive with other local dealers, the office said. The fee applied to nearly every sale and lease, producing millions of dollars in added revenue.
DARCARS Lexus collected about $5.8 million in the fee from October 2021 through March 2025, Daily Voice reported. DARCARS BMW collected about $2.9 million from August 2022 through March 2025.
An add-on bundle with strings attached
The office also faulted DARCARS Assurance, a bundled aftermarket package added to sales and lease agreements. Investigators found that customers were not told the package was optional, which left the impression that it was mandatory. The bundle included a collision credit and a stolen vehicle credit. The collision credit advertised up to $2,500 to reimburse an insurance deductible after a total loss.
Customers had to buy or lease another car from the same dealership within 60 days of an insurance settlement. The office likened the credit to a loyalty coupon that gave no immediate relief after a crash.
Refunds, claims and new rules
DARCARS Lexus will pay $892,671.26 to reimburse every customer charged the fee from Oct. 23, 2021, through May 30, 2022. Both stores will pay another $281,847.72 to customers who complained to the office. That includes $116,849 for DARCARS Assurance buyers and $164,998.72 for commission fee complaints.
Customers charged after May 2022 can seek restitution through a claims process. Other customers who paid will get claim forms. The stores must pay every valid claim, the office said, and total refunds could reach the millions of dollars.
DARCARS has stopped charging the commission, the office said. It also cannot sell DARCARS Assurance or a similar bundle at any New York dealership. Daily Voice reported that the settlement document bars the fee permanently. Future fees and add-ons must be clearly disclosed.
All employees, including sales, finance, marketing and advertising staff, will receive annual training on fair business practices. The office previously settled with 15 Nissan dealerships in New York City and on Long Island. Those deals delivered more than $4.5 million in restitution and $1 million in penalties.
