2 more Nissan dealerships on LI reach settlements with AG over allegedly cheating customers
Nissan 112 at 730 Medford Ave. in Patchogue on Friday. Credit: Howard Simmons
Two more Nissan dealerships on Long Island accused of cheating customers with leased vehicles have reached settlements with the New York attorney general.
South Shore Nissan in Amityville and Nissan 112 in Patchogue will pay more than $350,000 combined in penalties and restitutions for allegedly overcharging more than 200 customers who wanted to buy their leased vehicles at the end of their leases, according to a statement Friday from the Office of New York Attorney General Letitia James.
Nissan 112, which is located at 730 Medford Ave. in Patchogue, also was penalized for allegedly violating a previous settlement reached in 2015, the office said.
“Many New Yorkers are struggling to make ends meet and car dealers that add bogus fees onto their bills are making it harder for consumers to keep up with the cost of living. Today we are putting money back in the pockets of defrauded New Yorkers and reminding car dealers to steer clear of violating our laws and deceiving consumers,” James said in the statement.
The settlements come about 2½ months after James’ office reached agreements with five other Nissan dealerships in New York State, including two on Long Island — Baron Nissan in Greenvale and Nissan of Westbury. In March, the office announced that those five dealerships agreed to pay $1.9 million in settlements for allegedly cheating customers with leased vehicles.
Under the agreements announced Friday, Nissan 112 will pay $39,390 to 103 overcharged consumers in restitution, as well as a penalty of $250,000 for overcharging for end-of-lease buyouts and violating a 2015 settlement.
That previous settlement required the dealership to stop issuing “deceptive invoices that bundled together multiple after-sale products, like warranties, without clearly disclosing their price to the consumer before purchase,” the attorney general’s office said.
Nissan 112 could not be immediately reached for comment Friday.
South Shore Nissan, located at 200 Sunrise Hwy. in Amityville, will pay $33,191 to 120 overcharged consumers in restitution and a $31,200 penalty, the office said.
South Shore Nissan’s general manager said he had no comment but would forward Newsday’s request for comment to the appropriate parties Friday.
Neither dealership admits to or denies the findings of the attorney general's office, according to the settlement agreements.
Both dealerships have agreed to reform their invoicing practices for lease customers, the attorney general's office said.
The office launched an investigation into the two dealerships after customers complained of being overcharged and given incorrect receipts.
When customers who were leasing their cars tried to exercise their options to purchase the vehicles after the lease terms ended, the dealerships substantially overcharged them, the office said.
“From 2020 to 2023, the dealers either added miscellaneous ‘dealership fees’ or ‘administrative fees,’ or inflated the vehicle’s price on the invoice given to the consumer,” the attorney general's office said.
Customers who are entitled to restitution do not need to take any action to receive payments, which the dealerships already have begun mailing in full amounts of the overcharges, according to the office.
A statement Friday from Nissan North America said Nissan was committed to building long-term customer relationships by being transparent about how the company works.
“Customers who have financed their lease with Nissan Motor Acceptance Company (NMAC) may decide to purchase their vehicle at the predetermined purchase option price contained in their lease, plus any incidental charges necessary to complete the transaction as identified in the agreement. We expect Nissan dealers to honor the lease agreement,” said the statement from the Franklin, Tennessee-based Nissan North America.
For customers who have leased through companies other than NMAC, the expectation that dealers honor lease agreements is the same, the company said.
Two more Nissan dealerships on Long Island accused of cheating customers with leased vehicles have reached settlements with the New York attorney general.
South Shore Nissan in Amityville and Nissan 112 in Patchogue will pay more than $350,000 combined in penalties and restitutions for allegedly overcharging more than 200 customers who wanted to buy their leased vehicles at the end of their leases, according to a statement Friday from the Office of New York Attorney General Letitia James.
Nissan 112, which is located at 730 Medford Ave. in Patchogue, also was penalized for allegedly violating a previous settlement reached in 2015, the office said.
“Many New Yorkers are struggling to make ends meet and car dealers that add bogus fees onto their bills are making it harder for consumers to keep up with the cost of living. Today we are putting money back in the pockets of defrauded New Yorkers and reminding car dealers to steer clear of violating our laws and deceiving consumers,” James said in the statement.
The settlements come about 2½ months after James’ office reached agreements with five other Nissan dealerships in New York State, including two on Long Island — Baron Nissan in Greenvale and Nissan of Westbury. In March, the office announced that those five dealerships agreed to pay $1.9 million in settlements for allegedly cheating customers with leased vehicles.
Under the agreements announced Friday, Nissan 112 will pay $39,390 to 103 overcharged consumers in restitution, as well as a penalty of $250,000 for overcharging for end-of-lease buyouts and violating a 2015 settlement.
That previous settlement required the dealership to stop issuing “deceptive invoices that bundled together multiple after-sale products, like warranties, without clearly disclosing their price to the consumer before purchase,” the attorney general’s office said.
Nissan 112 could not be immediately reached for comment Friday.
South Shore Nissan, located at 200 Sunrise Hwy. in Amityville, will pay $33,191 to 120 overcharged consumers in restitution and a $31,200 penalty, the office said.
South Shore Nissan’s general manager said he had no comment but would forward Newsday’s request for comment to the appropriate parties Friday.
Neither dealership admits to or denies the findings of the attorney general's office, according to the settlement agreements.
Complaints of overcharge
Both dealerships have agreed to reform their invoicing practices for lease customers, the attorney general's office said.
The office launched an investigation into the two dealerships after customers complained of being overcharged and given incorrect receipts.
When customers who were leasing their cars tried to exercise their options to purchase the vehicles after the lease terms ended, the dealerships substantially overcharged them, the office said.
“From 2020 to 2023, the dealers either added miscellaneous ‘dealership fees’ or ‘administrative fees,’ or inflated the vehicle’s price on the invoice given to the consumer,” the attorney general's office said.
Customers who are entitled to restitution do not need to take any action to receive payments, which the dealerships already have begun mailing in full amounts of the overcharges, according to the office.
A statement Friday from Nissan North America said Nissan was committed to building long-term customer relationships by being transparent about how the company works.
“Customers who have financed their lease with Nissan Motor Acceptance Company (NMAC) may decide to purchase their vehicle at the predetermined purchase option price contained in their lease, plus any incidental charges necessary to complete the transaction as identified in the agreement. We expect Nissan dealers to honor the lease agreement,” said the statement from the Franklin, Tennessee-based Nissan North America.
For customers who have leased through companies other than NMAC, the expectation that dealers honor lease agreements is the same, the company said.
Tory N. Parrish covers retail and small business for Newsday. She has worked at the Pittsburgh Tribune-Review and Observer-Dispatch in Utica, N.Y.
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