New York Attorney General Letitia James has reached a settlement with eight Nissan dealerships in New York City, the Hudson Valley, and Long Island. The agreement involves more than $3.2 million to be paid for overcharging over 1,700 consumers who sought to purchase their leased vehicles at the end of their lease terms. The Office of the Attorney General (OAG) found that these dealerships added unnecessary fees or altered the price of leased vehicles, resulting in higher costs for consumers.
The affected dealerships include Action Nissan, Bay Ridge Nissan, Legend Nissan, Garden City Nissan, Huntington Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan. They will pay penalties for these practices and provide full restitution to those overcharged.
“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,” stated Attorney General James. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money.”
The investigation began after reports from consumers during the COVID-19 pandemic indicated they were being overcharged on end-of-lease buyouts. Consumers had agreements allowing them to purchase their leased vehicles for a predetermined amount at lease-end but were charged additional fees or inflated prices by the dealerships.
Specific payments under the settlements are as follows:
- Action Nissan will pay $157,958.59 to 192 consumers and a $47,920 penalty.
- Bay Ridge Nissan will pay $23,624 to 46 consumers and an $11,960 penalty.
- Garden City Nissan will pay $824,013 to 361 consumers and an $89,624 penalty.
- Huntington Nissan will pay $426,654 to 275 consumers and a $68,750 penalty.
- Legend Nissan will pay $333,482 to 233 consumers and a $20,000 penalty.
- Rockaway Nissan will pay $308,918 to 177 consumers and a $44,250 penalty.
- Smithtown Nissan will pay $643,640 to 321 consumers and an $80,250 penalty.
- Teddy Nissan will pay $108,773 to 156 consumers and a $35,560 penalty.
Consumers entitled to restitution do not need to take any action; checks are being mailed throughout the year. The dealerships have also agreed to reform invoicing practices.
Attorney General James has previously secured settlements with other dealerships for similar deceptive practices. In June 2024 alone she obtained $350,000 from two Long Island dealers; in March 2024 she secured over $1.9 million from five dealers in New York City and Long Island.
Consumers affected by such practices are encouraged by Attorney General James's office to file complaints online.
This case was managed 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 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.