“Nissan Dealerships Fined $1.9 Million for Customer Rip-Offs”

### Five Nissan Dealerships in New York Accused of Overcharging Customers

#### New York Attorney General’s Findings
– The dealers inflated vehicle prices at the end of lease terms
– Deceptive invoices misrepresented illegal upcharges as government fees
– Customers were overcharged up to $7,000 on an $18,000 vehicle
– Dealers agreed to pay $1.6 million in restitution and $340,000 in penalties

Five Nissan dealerships in New York are under scrutiny for allegedly overcharging 1,138 customers who leased vehicles and later purchased them outright. The New York Attorney General’s office uncovered this scheme, where customers were charged excessive fees and had the price of vehicles falsified between 2020 and 2023.

#### Investigation Results
The dealerships in question – Baron Nissan, Nissan of Westbury, Nissan of Kings, Nissan of Queens, and Nissan of Staten Island – were found to have substantially overcharged customers. They misrepresented illegal upcharges as government fees and inflated vehicle prices at the end of lease terms. For example, customers were billed $300 for a $37 state inspection fee and $500 for a $50 title fee, resulting in overcharges as high as $7,000 on an $18,000 vehicle.

#### Penalties and Restitution
To rectify the situation, the five Nissan dealerships have agreed to pay $1.6 million in restitution and $340,000 in civil penalties. Each dealer’s share of the payment is determined by factors such as the number of overcharged customers and the severity of the overcharging.

#### Commitment to Customers
The dealerships have begun compensating affected customers by mailing refund checks for the full overcharged amount. They have also committed to auditing all lease deals from the investigation’s start and providing additional refunds where necessary.

#### Conclusion
New York Attorney General Letitia James emphasized the importance of holding dealerships accountable for their actions. Nissan North America reiterated its commitment to transparency and customer trust, emphasizing the expectation for dealers to honor lease agreements. This incident follows similar accusations against a Nissan dealer in Connecticut, highlighting the need for consumer protection in the automotive industry.

Latest articles