Wayne Car Dealerships To Pay $135,000 In Consumer Affairs Lawsuit

Two Wayne auto dealerships have agreed to pay $135,000 in a settlement of a lawsuit claiming they deceived and failed to disclose information about used vehicles to potential customers, authorities announced.

Wayne Mazda and Wayne Auto Mall Hyundai will pay the money as a result of settling the five-count lawsuit filed in state Superior Court in Passaic County by the state Office of the Attorney General and the Division of Consumer Affairs in August 2014. Bergen Auto Enterprises, which does business in Passaic County as the two dealerships, was accused of using ”bait and switch” tactics by featuring motor vehicles in advertisements that were not available to purchase or lease, the Officer of the Attorney General said.

The dealerships also did not tell customers that some motor vehicles had previously been used a rental vehicles and ”sustained significant prior damage,” authorities said.

“Purchasing a new or used motor vehicle can be a very intimidating process for consumers,” said Acting Attorney General John J. Hoffman. “This settlement ensures that Bergen Auto Enterprises will make all appropriate disclosures in advertisements and otherwise.”

The $135,000 is composed of a $109,000 civil penalty and $20,000 in reimbursements for state attorney fees and costs. The settlement also includes a $50,000 suspended penalty, which will be vacated in one year if Bergen Auto Enterprises does not violate terms of the judgement.

The dealerships must search a used vehicle’s rental history to determine if it had been in an accident or was previously damaged. Customers must be given this information prior to purchasing the vehicle.
Used vehicle advertisements must clearly disclose a vehicle’s prior use, unless a vehicle was strictly for personal uses and let customers know if a vehicle was previously damaged.
Advertisements must show how long an offer on a vehicle is good for, and state that a vehicle’s price “include all costs to be paid by the consumer, except for licensing costs, registration, fees, and taxes.”

Written by Daniel Hubbard, Wayne Patch. For more information, please visit http://patch.com/new-jersey/wayne/wayne-car-dealerships-pay-135000-consumer-affairs-lawsuit-0