The STATE Attorney General’s Office took action against a dealership after prosecutors complained of unfair and deceptive practices.
One car buyer said he was charged $1,395 for an option he didn’t know was optional.
A Honda dealership in Bowie, Maryland, has been accused of misleading vehicle prices online by the Attorney General’s Office.
The complaint stemmed from the online vehicle listings being below consumer expectations, so they came to buy it and allegedly found several hidden fees in the contract.
The state defines unfair or deceptive business practices as“makes a false or misleading oral or written statement, visual description or other representation that has the ability, tendency or effect to deceive the prospective tenant.”
The Attorney General’s Office reportedly found an extra two percent of a vehicle’s value listed as “sales commission.”
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According to ABC affiliate WMARThe dealership claimed the fee was optional, but did not inform the customer that it was.
It was also reported that Darcas Honda was charged an additional $895 for factory pre-installed equipment that should have been included in the sales price.
It was driven by a “Honda Value Package”.
Prosecutors argued that buyers should not have to pay this since the equipment is installed before they buy the car.
Furthermore, the extra earned from the “sales commission” does not go to the sales staff, prosecutors alleged.
Those suing the dealership allege that the profits are being used to offset the commission paid to salespeople.
Another surprise charge raised by prosecutors was a $500 processing charge.
The case is ongoing and a hearing is scheduled from October 29th to November 8th.
The state of Maryland is seeking refunds for affected buyers.
It also filed a request for an injunction to force the concessionaire to stop the alleged practices.
Tips for dealerships
Here are some expert tips when buying a car from a dealership:
- 1. Set your price: Make sure you have calculated your monthly budget before going to the lot. You must include your car loan payment, insurance costs, fuel and regular maintenance.
- 2. Research: Make sure you know which cars you’re interested in testing before you get to the dealership.
- 3. Pre-approval: Secure financing before going to the dealership. Dealerships may offer a better interest rate if they are competing with an outside bank.
- 4. Test: Drive before making any payments. Buying a car will be worth thousands of dollars – drivers should ensure they like the car’s drivetrain, steering and comfort before driving it off the lot
- 5. Haggle: Drivers should always try to negotiate the price. There are so many good cars on the American market – buyers have a strong hand in negotiating prices.
Source: Kelley Blue Book
When WMAR contacted Bowie’s Darcars Honda, reporters received this statement.
“Over the past two years, Bowie’s Honda has fully cooperated with the Maryland Attorney General to respond to his request for information and address his concerns. This is a case where the premise of the case is not supported by the record or the facts .”
“We are confident in our level of outreach on this matter and have proactively sought to partner with the Attorney General to establish new industry best practices that could benefit all Maryland consumers.
“We are prepared to defend our company and our legal practices in court against these unsubstantiated allegations, while continuing to provide our customers with industry-leading service in every market we serve.”
The US Sun has reached out to Bowie’s Darcars Honda for comment.
This story originally appeared on The-sun.com read the full story