NY Attorney General Secures Over $3.2M from Nissan Dealers for Allegedly Cheating Consumers

On May 6, 2025, New York Attorney General Letitia James announced that the agency secured more than $3.2 million from eight Nissan dealerships in New York City, the Hudson Valley and on Long Island – Action Nissan, Bay Ridge Nissan, Legend Nissan, Garden City Nissan, Huntington Nissan, Rockaway Nissan, Smithtown Nissan, and Teddy Nissan – for allegedly overcharging more than 1,700 New Yorkers that purportedly wanted to purchase their leased vehicles at the end of their lease term.

An investigation by the Office of the Attorney General allegedly found that these dealerships added junk fees or falsified the price of leased vehicles that customers wanted to buy when their lease ended, purportedly forcing them to pay higher costs.

Attorney General James has now stopped deceptive practices at 15 Nissan dealerships and recovered more than $1 million in penalties and $4.5 million in restitution for more than 2,800 New Yorkers, according to the announcement.

“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. Attorney General James also stated that “[t]hese car dealers misled their customers with bogus fees and other costs to cheat them out of their hard-earned money. My office’s investigation will put money back in the pockets of defrauded New Yorkers and require these dealers to steer clear of violating our laws and deceiving consumers,” according to Attorney General James.

The OAG opened an investigation into Nissan dealerships after consumers alleged they were being overcharged and given inaccurate receipts for end-of-lease buyouts after the onset of the COVID-19 pandemic.  The investigation allegedly found that the consumers leased their Nissan cars under an agreement that gave them the option to purchase the vehicle for a set amount after the lease term ended.

However, when they returned to the dealerships to buy their car when their leases were up, the dealerships allegedly substantially overcharged them.   The dealers purportedly either added miscellaneous “dealership fees” or “administrative fees,” or inflated the vehicle’s price on the invoice given to the consumer.

Under the agreements announced today:

• Action Nissan in Rockland County will pay $157,958.59 to 192 alleged overcharged consumers and pay a $47,920 penalty;
• Bay Ridge Nissan in Brooklyn will pay $23,624 to 46 alleged overcharged consumers and pay a $11,960 penalty;
• Garden City Nissan in Nassau County will pay $824,013 to 361 alleged overcharged consumers and pay a $89,624 penalty;
• Huntington Nissan in Suffolk County will pay $426,654 to 275 alleged overcharged consumers and pay a $68,750 penalty;
• Legend Nissan in Syosset, Nassau County will pay $333,482 to 233 alleged overcharged consumers and pay a $20,000 penalty;
• Rockaway Nissan in Queens will pay $308,918 to 177 alledged overcharged consumers and pay a $44,250 penalty;
• Smithtown Nissan in Suffolk County will pay $643,640 to 321 alleged vercharged consumers and pay a $80,250 penalty; and
• Teddy Nissan in the Bronx will pay $108,773 to 156 alleged overcharged consumers and pay a $35,560 penalty.

According to the OAG, the dealerships have also agreed to reform their invoicing practices to ensure all lease buyout customers are neither overcharged nor provided with inaccurate receipts.

The OAG commenced the investigation into the alleged unlawful and deceptive charges pursuant to General Business Law § 349, General Business Law § 350, Personal Property Law §§ 330-53 and Executive Law § 63(12).  Consult with an attorney general defense lawyer to discuss legal regulatory requirements set forth in the aforementioned statutory section.

Attorney General James has secured settlements with 15 different Nissan dealerships for allegedly cheating customers with illegal fees and inflated prices when they attempted to buy out the leases on their cars.  In June 2024, Attorney General James secured $350,000 from two Nissan dealers on Long Island.  In March 2024, Attorney General James secured over $1.9 million from five Nissan dealers in New York City and Long Island.

This matter was handled by the Assistant Attorney General of the Consumer Frauds and Protection Bureau, under the supervision of the Bureau Chief and Deputy Bureau Chief.  The Consumer Frauds and Protection Bureau is a part of the Division of Economic Justice, which is led by the Chief Deputy Attorney General and overseen by the First Deputy Attorney General.

Richard B. Newman is an FTC advertising compliance lawyer at Hinch Newman LLP. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.