Indiana Used Car Dealership Fined Almost Half a Million Dollars for Deceptive Practices
Overview of the Fine
An Indiana business operating four used-car dealerships has been ordered to pay a fine of $470,646 to former customers. The State Attorney General found that the dealership engaged in deceptive practices, resulting in customers being charged significantly more than advertised.
Details of the Case
- The dealer’s parent company, Sycamore Co. LLC, has agreed to make four payments of $85,039.40 each as part of the settlement.
- Indiana regulators took action against Honest Abe Auto Sales, accusing them of deceptive practices.
- The dealership primarily operates as a buy-here, pay-here business in Indianapolis.
Deceptive Practices Uncovered
According to Indiana Attorney General Todd Rokita, Honest Abe Auto Sales advertised a cash price but would significantly increase the total price for customers looking to finance a vehicle. This practice resulted in customers paying thousands of dollars more than the advertised price.
Response from the Attorney General
Rokita expressed concern over the dealership’s tactics, stating that consumers should not be subjected to bait-and-switch techniques. He emphasized the importance of transparency and fair pricing in the automotive industry.
Penalties and Payments
Sycamore Co. LLC has already paid a portion of the fine and is required to make additional payments over the coming months. Failure to comply with the payment schedule could result in further legal action by the state.
Company Information
Honest Abe Auto Sales has multiple locations in Indiana, and Sycamore Co. LLC was founded in 2009 by Ibrahim Saad Alfaran. The company’s president.
