Must Also Pay Over $258K in Penalties
By Hank Russell
Four Nissan dealerships on Long Island were part of a $3.2 million settlement — along with four other dealerships — to pay back nearly 1,700 New York customers whom they allegedly overcharged during the end of the lease.
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.
Of the eight, four were from Long Island; Legend Nissan in Syosset, Garden City Nissan, Huntington Nissan and Smithtown Nissan. Under the agreements:
- Garden City Nissan in Nassau County will pay $824,013 to 361 overcharged consumers and pay a $89,624 penalty.
- Huntington Nissan in 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.
- Smithtown Nissan in Suffolk County will pay $643,640 to 321 overcharged consumers and pay a $80,250 penalty.
In total, these dealerships must pay back a combined $2,645,480 to 1,523 overcharged customers. Additionally, they must pay $258,434 in combined penalties.
This is not the first time James has penalized local Nissan dealerships. As previously reported in Long Island Life & Politics, she secured over $1.9 million in settlements from five Nissan car dealerships across New York City and Long Island, accused of overcharging consumers. Baron Nissan, based in Greenvale, agreed to pay $204,656.89 in consumer restitution and a $51,190 fine. Nissan of Westbury paid $102,636.07 in restitution and a $19,440 fine.
LILP also reported that Route 112 Nissan in Patchogue and South Shore Nissan in Amityville were charged a combined $350,000 for overcharging more than 200 New Yorkers who wanted to purchase their leased vehicles at the end of their lease term. The AG’s Office found that the dealerships added junk fees or falsified the price of leased vehicles that consumers wanted to buy when their lease ended. The investigation also revealed that Route 112 Nissan violated a previous settlement with OAG that required the dealership to stop giving consumers fraudulent invoices with junk fees.
“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,” James said. “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.”
LILP reached out to Nissan USA headquarters for comment and is waiting to hear back.
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.
Any consumers who may have been affected by deceptive or fraudulent lease buyout practices to file a consumer complaint online.