5 Nissan dealerships, including 2 on Long Island, to pay $1.9M after allegedly cheating customers, New York attorney general says

Five Nissan dealerships in New York State, including two on Long Island, have agreed to pay $1.9 million in settlements for allegedly cheating customers with leased vehicles, according to the state attorney general’s office.

Baron Nissan in Greenvale, Nissan of Westbury and three other dealerships agreed to pay a combined $1.6 million in restitution to more than 1,100 customers and civil penalties totaling $342,587, the office said in a statement Thursday.

“Ignoring agreements and adding bogus fees harms New York consumers, and that is something my office won’t allow to go unchallenged. … Our investigation and settlement put money back into New Yorkers’ pockets and send a clear message that lying to New Yorkers and manipulating costs with shady tactics will not be tolerated,” Attorney General Letitia James said in the statement.

Neither Baron Nissan nor Nissan of Westbury could be immediately reached for comment Thursday.

After receiving complaints from customers who claimed they were being overcharged by the Nissan dealerships and given inaccurate receipts, the attorney general's office launched an investigation that found that the dealerships added junk fees or falsified the prices of vehicles between 2020 and 2023, the office said.

The customers had leased Nissan vehicles under agreements that gave them the option to buy the autos after their lease terms ended.

“But when the consumers returned to the dealerships when their leases were up to buy their car, 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,” according to the attorney general’s office.

Some customers allegedly were overcharged as much as $7,000 on $18,000 vehicles.

Also, some dealerships allegedly misrepresented illegal upcharges as government fees, such as charging $300 for a $37 state inspection fee and $500 for a $50 title fee, the office said.

Of the five dealerships that reached settlement agreements, Baron Nissan will pay $204,656.89 to 186 “overcharged consumers” and a $51,190 penalty, according to the attorney general’s office. Nissan of Westbury will pay $102,636.07 to 72 “overcharged consumers” and a $19,440 penalty, the office said.

The other three dealerships that reached settlements are Nissan of Kings in Brooklyn, Nissan of Queens and Nissan of Staten Island, the office said.

Customers who are entitled to restitution are not required to take any action to receive payments from the dealerships, which have begun mailing checks and agreed to reform their invoicing practices and audit all deals that have taken place since the investigation started, according to the attorney general’s office.

A spokesman for Nissan North America, which is based in Franklin, Tennessee, said in a statement Thursday that the company is dedicated to building long-term relationships with customers by being transparent about the company’s services.

“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,” the company said.

For customers whose leases aren’t through NMAC, Nissan said it also expects dealers to honor lease agreements.

By Tory N. Parrish

tory.parrish@newsday.comToryParrish1

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.