Car dealerships in New York have been held accountable for deceptive business practices after an investigation led by Attorney General Letitia James. More than $3.2 million has been recovered from eight Nissan dealerships across New York City, the Hudson Valley, and Long Island as a result of misleading consumers about the costs of their leased vehicle buyouts. Over 1,700 New Yorkers were overcharged when trying to buy cars at the end of their lease terms, with dealerships tacking on junk fees or manipulating the vehicle's price, according to a release from the Attorney General's office.
These deceptive practices by Nissan dealers impelled the Office of the Attorney General to take action, resulting in significant restitution for affected customers. For example, Action Nissan in Rockland County will refund $157,958.59 to nearly 200 overcharged consumers, plus pay a $47,920 penalty. Huntington Nissan is reported to pay $426,654 to 275 consumers alongside a $68,750 penalty. In an official statement, Attorney General James remarked, “Buying a car is a major financial decision, and no one should have to worry about dealers using illegal junk fees to drive up the price."
The investigation into the Nissan dealerships revealed that customers who opted to purchase their leased vehicles were promised a set buyout amount, however, dealers added unauthorized fees or inflated prices. Checks for full restitution have already begun to roll out to the affected individuals. As part of the resolution, dealerships have committed to reform their invoicing practices to prevent further overcharging and will provide accurate receipts to customers.
This enforcement is not the first of its kind; Attorney General James has tackled deceptive practices at fifteen Nissan dealerships to date, recovering more than $4.5 million in restitution. Besides, in June 2024, two Long Island dealers were ordered to pay $350,000, and in March of the same year, over $1.9 million was secured from five dealerships in New York City and Long Island for similar infractions. New Yorkers who feel they have been wronged in lease buyouts are urged to submit a consumer complaint online with the Attorney General's office. The pursuit of these cases highlights a continued effort to protect consumers from unethical business tactics within the automotive industry.
