New York AG settles with 5 Nissan stores over end-of-lease infractions
Big Apple authorities determined end-of-lease transactions did not go as designed during a three-year period amid the pandemic.
New York attorney general Letitia James last week announced settlements worth more than $1.9 million with five Nissan dealerships in New York City and on Long Island. James said the actions stemmed from overcharging more than thousand New Yorkers who wanted to purchase their leased vehicles at the end of their lease term.
An investigation by the attorney general found that the dealerships added “junk fees or falsified the price of vehicles” between 2020 and 2023.
According to a news release, the agreements require the dealerships to pay more than $1.6 million in restitution to more than 1,100 consumers and a civil penalty of $340,000.
Here are the specifics:
Baron Nissan will pay $204,656.89 to 186 overcharged consumers and a $51,190 penalty.
Nissan of Kings will pay $437,560.86 to 420 overcharged consumers and a $147,000 penalty.
Nissan of Queens will pay $608,347.83 to 276 overcharged consumers and a $69,757 penalty.
Nissan of Staten Island will pay $282,255.61 to 184 overcharged consumers and a $55,200 penalty.
Nissan of Westbury will pay $102,636.07 to 72 overcharged consumers and a $19,440 penalty.
The New York AG said she opened an investigation into those five Nissan dealerships after consumers reported they were being overcharged and given inaccurate receipts. The investigation found that each of these consumers leased their Nissan cars under an agreement that gave them the option to purchase the vehicle for a set amount after the lease term ended.
But when the consumers returned to the dealerships when their leases were up to buy their car, officials said the dealerships substantially overcharged them.
Authorities said the dealers either added miscellaneous “dealership fees” or “administrative fees,” or inflated the vehicle’s price on the invoice given to the consumer.
In some instances, customers were overcharged as much as $7,000 on an $18,000 vehicle, according to the news release.
The investigation also revealed that the dealerships provided customers with “deceptive invoices.” Officials said these included misrepresenting illegal upcharges as government fees, such as a $37 state inspection fee that dealers charged as $300, and a $50 title fee that dealers charged as $500.
Officials said New York law guarantees every consumer the right to a complete and accurate receipt for every car sale, yet thousands of examined invoices failed that basic test.
“Ignoring agreements and adding bogus fees harms New York consumers, and that is something my office won’t allow to go unchallenged,” James said in the news release. “These car dealerships lined their pockets at the expense of hardworking New Yorkers who were trying to have a reliable car to get to work, take their children to school, run errands, and live their daily lives.
“Our investigation and settlement put money back into New Yorkers’ pockets and send a clear message that lying to New Yorkers and manipulating costs with shady tactics will not be tolerated,” she added.
The news release also included comments from five New York state lawmakers who all cheered James’ investigation and settlements.
Sen. Monica Martinez: “When buying out a vehicle lease, the only thing that should be taken for a ride is the car. On behalf of customers across Long Island, I thank Attorney General James for putting the brakes on these fraudulent and deceptive end-of-lease purchasing fees that have cost consumers in excess of $1 million.”
Sen. Kevin Thomas: “As chairman of the Consumer Protection Committee, I applaud attorney general James taking actions against deceptive Nissan dealerships. Preying on hardworking New Yorkers looking for reliable and affordable cars is unacceptable. These settlements underscore our commitment to consumer protection and send a clear message: fraudulent practices will be met with consequences.”
Assemblymember Michaelle Solages, who is deputy majority leader and chair of the Black, Puerto Rican, Hispanic, and Asian Legislative Caucus: “Every consumer on Long Island and across the state deserves a fair shake, especially when making major purchases like a car. It is unacceptable to have had these predatory business practices occur while so many family finances were already strained amid the pandemic and the affordability crisis that followed. I am pleased the attorney general secured these restitution payments for the car owners impacted by this scheme.”
Assemblymember Kimberly Jean-Pierre: “Today’s settlement is a victory for consumers everywhere. Adding junk fees to lease buyouts is flat-out unethical and violates our consumers’ trust. New Yorkers deserve honesty and integrity. I sincerely appreciate attorney general James for investigating this issue and ensuring that consumers are compensated for the wrongs done by these dealerships. This settlement sends a clear message that these deceptive practices will not be tolerated.”
Assemblyman Charles Lavine: “Thank you to attorney general James for once again putting consumers first. This action provides justice for New York consumers, including many in my district, who were simply trying to get a fair deal for one of modern life’s basic necessities and were cheated. It also sends a message to those who are using unethical business practices that their actions come with consequences.”