Attorney General Letitia James has secured over $3.2 million in restitution and penalties from eight Nissan dealerships that cheated more than 1,700 customers. Officials say it was done through illegal end-of-lease overcharges.
The settlement follows an investigation by the OAG’s office into deceptive practices. Consumers were charged inflated prices when buying out their leased vehicles.
Dealers inflated lease buyout prices with junk fees
The OAG found that Action Nissan, Bay Ridge Nissan, Garden City Nissan, Huntington Nissan, Legend Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan routinely added bogus dealership or administrative fees to lease buyouts. In some cases, dealerships also falsified the vehicle price on invoices, forcing customers to pay more than the amount originally agreed upon in their lease contracts.
“These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money,” Attorney General James said. “Our action today will put money back in consumers’ pockets and force these dealerships to change their practices.”
Breakdown of restitution and penalties
The settlements include both consumer restitution and penalties:
- Action Nissan: $157,958 to 192 consumers + $47,920 penalty
- Bay Ridge Nissan: $23,624 to 46 consumers + $11,960 penalty
- Garden City Nissan: $824,013 to 361 consumers + $89,624 penalty
- Huntington Nissan: $426,654 to 275 consumers + $68,750 penalty
- Legend Nissan: $333,482 to 233 consumers + $20,000 penalty
- Rockaway Nissan: $308,918 to 177 consumers + $44,250 penalty
- Smithtown Nissan: $643,640 to 321 consumers + $80,250 penalty
- Teddy Nissan: $108,773 to 156 consumers + $35,560 penalty
Consumers entitled to restitution do not need to take any action; dealerships have already begun mailing checks and will continue to issue payments throughout the year.
Part of a broader crackdown on deceptive auto practices
This settlement builds on Attorney General James’ broader crackdown against auto industry fraud. In 2024 alone, her office recovered nearly $2.3 million from Nissan dealerships in separate settlements over similar end-of-lease overcharge schemes.
The Attorney General’s Office has recovered more than $4.5 million for over 2,800 New Yorkers. They’ve also secured $1 million in penalties from Nissan dealers statewide.
The dealerships involved have also agreed to reform their invoicing practices to ensure transparency and lawful compliance in all future lease buyout transactions.
How consumers can protect themselves
Attorney General James encourages any New Yorker who believes they were defrauded during a car lease or purchase to file a consumer complaint online. Car buyers should always carefully review lease agreements and final purchase invoices, and report any suspicious charges immediately.
The Office of the Attorney General’s Consumer Frauds and Protection Bureau, part of the Division of Economic Justice, handled this matter.
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