New York Attorney General Letitia James has secured over $350,000 from two Long Island Nissan dealerships, Route 112 Nissan and South Shore Nissan, for overcharging more than 200 New Yorkers seeking to purchase their leased vehicles at the end of their lease terms. An investigation by the Office of the Attorney General (OAG) found that these dealerships in Patchogue and Amityville added junk fees or falsified prices on leased vehicles that consumers wanted to buy when their leases ended.
The investigation also revealed that Route 112 Nissan violated a previous settlement with OAG, which required the dealership to stop issuing fraudulent invoices with junk fees. The new settlement mandates Route 112 Nissan to pay penalties for violating its prior settlement, penalties for overcharging on end-of-lease buyouts, and restitution to consumers who paid more than promised. South Shore Nissan is similarly required to refund consumers and pay penalties.
Attorney General James stated, “When dealers illegally drive up car prices, they cheat hardworking New Yorkers who rely on their cars every day to get to work or take their kids to school. 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.”
The OAG opened an investigation into Route 112 Nissan and South Shore Nissan after receiving consumer reports about overcharges and inaccurate receipts. Consumers had leased their Nissan cars under agreements allowing them the option to purchase the vehicle for a set amount after the lease term ended. However, from 2020 to 2023, these dealerships substantially overcharged consumers when they returned at lease-end by adding miscellaneous "dealership fees" or "administrative fees," or inflating vehicle prices on invoices.
The investigation further discovered that Route 112 Nissan breached a 2015 agreement with OAG by continuing deceptive invoicing practices that bundled multiple after-sale products without clearly disclosing individual prices before purchase.
Under today's agreements:
- South Shore Nissan will pay $33,191 in restitution to 120 overcharged consumers and a $31,200 penalty.
- Route 112 Nissan will pay $39,390 in restitution to 103 overcharged consumers and a $250,000 penalty for end-of-lease buyout overcharges and violating its prior settlement.
Consumers entitled to restitution do not need any action as payments have already begun through mailed checks covering full amounts of the overcharge. Both dealerships have agreed to reform invoicing practices ensuring accurate charges for all lease buyout customers.
Attorney General James encourages any affected consumers by deceptive or fraudulent lease buyout practices to file a consumer complaint online.
This matter was handled by Assistant Attorney General Alec Webley of the Consumer Frauds and Protection Bureau under Bureau Chief Jane M. Azia's supervision along with Deputy Bureau Chief Laura J. Levine. The Consumer Frauds and Protection Bureau is part of the Division of Economic Justice led by Chief Deputy Attorney General Chris D’Angelo overseen by First Deputy Attorney General Jennifer Levy.
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