(WNY News Now) – Over 1,700 New Yorkers will receive restitution after Nissan dealerships added illegal fees to end-of-lease vehicle buyouts.
NEW YORK — New York Attorney General Letitia James has reached a $3.2 million settlement with eight Nissan dealerships accused of overcharging consumers on end-of-lease vehicle purchases. The resolution includes $2.8 million in restitution to more than 1,700 affected consumers and $400,000 in penalties from dealerships located in New York City, Long Island, and the Hudson Valley.
The investigation by the Office of the Attorney General (OAG) revealed that these dealerships added unauthorized fees or inflated vehicle prices on lease buyouts, violating the agreed-upon contract terms. Affected consumers were charged more than the fixed purchase price specified in their lease agreements, often through vague charges like “dealership” or “administrative” fees.
The dealerships involved and the amounts they will pay are:
- Action Nissan (Rockland County): $157,959 to 192 consumers; $47,920 penalty
- Bay Ridge Nissan (Brooklyn): $23,624 to 46 consumers; $11,960 penalty
- Garden City Nissan (Nassau County): $824,013 to 361 consumers; $89,624 penalty
- Huntington Nissan (Suffolk County): $426,654 to 275 consumers; $68,750 penalty
- Legend Nissan (Syosset, Nassau County): $333,482 to 233 consumers; $20,000 penalty
- Rockaway Nissan (Queens): $308,918 to 177 consumers; $44,250 penalty
- Smithtown Nissan (Suffolk County): $643,640 to 321 consumers; $80,250 penalty
- Teddy Nissan (Bronx): $108,773 to 156 consumers; $35,560 penalty
Eligible consumers will automatically receive checks in the mail for the full amount they were overcharged. The dealerships have also agreed to reform their invoicing practices to prevent future violations.
“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,” said Attorney General James. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money.”
This latest action brings the total recovered by AG James in lease overcharge cases involving Nissan dealerships to more than $4.5 million in restitution and over $1 million in penalties. Previous settlements in 2024 included $1.9 million from five dealerships in March and $350,000 from two Long Island dealers in June.
Consumers who believe they may have been affected by deceptive lease buyout practices are encouraged to file a complaint online with the Office of the Attorney General.
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