New York Attorney General Letitia James has secured more than $3.2 million from eight Nissan dealerships in New York City, the Hudson Valley, and on Long Island – Action Nissan, Bay Ridge Nissan, Legend Nissan, Garden City Nissan, Huntington Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan – for allegedly overcharging more than 1,700 New Yorkers who wanted to purchase their leased vehicles at the end of their lease term. The announcement was made on May 6.
An investigation by the Office of the Attorney General (OAG) found that these dealerships added junk fees or falsified the price of leased vehicles that customers wanted to buy when their lease ended, forcing them to pay higher costs. As a result of OAG’s investigation, eight dealerships will pay penalties for overcharging on end-of-lease buyouts and pay full restitution to more than 1,700 consumers who paid more for their vehicles than they were promised. Attorney General James has now stopped deceptive practices at 15 Nissan dealerships and recovered more than $1 million in penalties and $4.5 million in restitution for more than 2,800 New Yorkers.
“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,” said Attorney General James in a press release. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money. My office’s investigation will put money back in the pockets of defrauded New Yorkers and require these dealers to steer clear of violating our laws and deceiving consumers.”
The OAG opened an investigation into Nissan dealerships after consumers reported they were being overcharged and given inaccurate receipts for end-of-lease buyouts after the onset of the COVID-19 pandemic. The investigation found that the 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. However, when they returned to the dealerships to buy their car when their leases were up, the dealerships substantially overcharged them. The dealers either added miscellaneous “dealership fees” or “administrative fees,” or inflated the vehicle’s price on the invoice given to the consumer.
Under the agreements announced on May 6:
- Action Nissan in Nyack, Rockland County will pay $157,958.59 to 192 overcharged consumers and pay a $47,920 penalty;
- Bay Ridge Nissan in Brooklyn will pay $23,624 to 46 overcharged consumers and pay a $11,960 penalty;
- Garden City Nissan in Hempstead, Nassau County will pay $824,013 to 361 overcharged consumers and pay a $89,624 penalty;
- Huntington Nissan in Huntington Station, Suffolk County will pay $426,654 to 275 overcharged consumers and pay a $68,750 penalty;
- Legend Nissan in Syosset, Nassau County will pay $333,482 to 233 overcharged consumers and pay a $20,000 penalty;
- Rockaway Nissan in Queens will pay $308,918 to 177 overcharged consumers and pay a $44,250 penalty;
- Smithtown Nissan in St. James, Suffolk County will pay $643,640 to 321 overcharged consumers and pay a $80,250 penalty; and
- Teddy Nissan in the Bronx will pay $108,773 to 156 overcharged consumers and pay a $35,560 penalty.
New Yorkers entitled to restitution do not need to take any action to receive the payment. The dealerships have already begun paying restitution through mailed checks in the full amount of the overcharge and will continue to do so throughout the year. The dealerships have also agreed to reform their invoicing practices to ensure all lease buyout customers are neither overcharged nor provided with inaccurate receipts.
Attorney General James has secured settlements with 15 different Nissan dealerships for cheating customers with illegal fees and inflated prices when they attempted to buy out the leases on their cars. In June 2024, Attorney General James secured $350,000 from two Nissan dealers on Long Island. In March 2024, Attorney General James secured over $1.9 million from five Nissan dealers in New York City and Long Island.
Attorney General James asks any consumers who may have been affected by deceptive or fraudulent lease buyout practices to file a consumer complaint online.
This matter was handled by Assistant Attorney General Alec Webley of the Consumer Frauds and Protection Bureau, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine. The Consumer Frauds and Protection Bureau is a part of the Division of Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.
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