Edited by: TJVNews.com

In a sweeping enforcement action targeting deceptive auto dealer practices, New York Attorney General Letitia James announced Tuesday that her office has secured more than $3.2 million in restitution and penalties from eight Nissan-affiliated dealerships — including Bay Ridge Nissan — for systematically overcharging consumers during vehicle lease buyouts. As VIN News reported, this landmark settlement addresses illegal pricing tactics that impacted over 1,700 New Yorkers and underscores the state’s renewed focus on consumer protection within the automotive industry.

One of the most prominent dealerships named in the investigation was Bay Ridge Nissan, a well-known Brooklyn operation. According to the information provided in the VIN News report, Bay Ridge Nissan will pay $23,624 in restitution to 46 local consumers who were subjected to undisclosed or unnecessary charges during their lease-end process. Additionally, the dealership will pay $11,960 in penalties to the state.

The infractions involved tacking on “junk fees” — including inflated administrative charges, arbitrary disposition fees, and unauthorized pre-delivery service costs — to the final buyout price of leased vehicles. The VIN News report confirmed that these fees were often presented to consumers as mandatory, when in fact they were not part of any binding agreement or state-regulated requirement.

“This was not a matter of a few mistakes — this was a pattern,” an official from the Attorney General’s office told VIN News. “Consumers were misled at a vulnerable moment, as they were making final decisions about their leased vehicles.”

The Bay Ridge Nissan case was part of a broader investigation that targeted 15 Nissan dealerships across New York State. In total, eight of those dealerships were found guilty of overcharging consumers, leading to a total recovery of $4.5 million, including restitution and fines. The report on VIN News noted that several of the dealerships are located in Queens, Staten Island, the Bronx, and Long Island, with major players like Star Nissan and Great Neck Nissan among them.

Attorney General James emphasized the significance of the enforcement in her remarks: “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,” she said. “These car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money. Today’s settlement sends a clear message: we will hold accountable any business that puts profits over people.”

VIN News spoke with Miriam S., a Brooklyn resident and one of the 1,700 affected consumers statewide. She recounted her experience with Bay Ridge Nissan, where she faced an unexpected $695 “disposition fee” at the end of her lease.

“They told me it was standard and non-negotiable,” she said. “Only after speaking to another dealer and eventually filing a complaint did I realize I’d been misled. I felt taken advantage of.”

Miriam received her refund last month. “It’s not about the money — it’s about the principle,” she added. Her story is representative of the kind of misinformation that triggered the Attorney General’s investigation.

As part of the settlement agreement, VIN News reported that the eight dealerships must implement significant compliance reforms. These include eliminating hidden fees from lease buyout transactions, clearly disclosing all final pricing to consumers in writing, undergoing regular monitoring and compliance checks by the Attorney General’s office and providing staff training on legal obligations under New York’s consumer protection laws.

Consumers who leased vehicles from these dealerships between 2020 and 2023 are being urged to review their buyout agreements. Those who suspect they were overcharged can file claims directly with the Attorney General’s Consumer Frauds and Protection Bureau.

Claim forms are available online or through regional offices of the AG’s office. VIN News encouraged consumers to act quickly, as deadlines for claims may apply.

This action follows a growing trend of state-level crackdowns on predatory lending and deceptive dealer practices. VIN News previously covered similar cases where auto lenders faced lawsuits over inflated interest rates and discriminatory lending to minority borrowers.

The Greater New York Automobile Dealers Association declined to comment on the ruling, and Bay Ridge Nissan did not respond to multiple inquiries from VIN News.

Attorney General James concluded by stating that her office will remain vigilant in protecting New Yorkers from financial exploitation.

“New Yorkers work too hard to be deceived at the dealership,” she said. “This settlement is a reminder that we will not tolerate dishonest practices in our state.”

The investigation sends a clear message to the auto industry: deceptive business practices — especially those that prey on consumer trust — will be met with aggressive enforcement and public accountability.