by A car dealership in the state of New Jersey, which advertises luxury car models on its website, is required to pay a fine of over $842,000. State authorities accuse the dealer of systematically deceiving buyers and using misleading sales methods. The court also found that the dealership violated the terms of a prior 2018 settlement, reached due to the sale of so-called “gray” cars not adapted for the U.S. market.
The Nature of the Violations
The case against the dealer BM Motor Cars was initiated in 2023. The main accusations concerned advertising and sales practices. Specifically, the dealership did not include mandatory dealer preparation fees in the price listed in online advertisements. This misled buyers about the real cost of the purchase.
Acting Attorney General Jennifer Davenport stated that the dealership concealed the true purchase price by “failing to include dealer preparation fees in the price in its online advertisements, as well as failing to post on its website, in the required font size, a statement that ‘the price(s) include(s) all costs to be paid by a consumer, except for licensing, registration, and taxes'”, as required by New Jersey’s Automotive Advertising Regulations.
Additional Accusations and Violations
The state also alleged that BM Motor Cars required some consumers to waive their right to purchase a used car that meets New Jersey’s inspection standards. Furthermore, the dealership did not provide buyers with information about known defects that could affect the vehicle’s ability to pass inspection.
Other violations included refusing to provide copies of signed odometer disclosure statements, which record the mileage at the time of title transfer, as well as necessary explanations regarding “gray” cars that may not meet U.S. safety or emissions standards.
Court Decision and Scale of Violations
At the end of last month, the Superior Court of Union County imposed a civil penalty of $793,500 on BM Motor Cars for the violations found in the case. The court also ordered the dealership to reimburse the state nearly $50,000 in court and investigation costs.
In addition to financial penalties, the court ordered the dealership to cease any deceptive practices and henceforth comply with all applicable state and federal laws. According to the court, BM Motor Cars committed at least 511 violations in just two months during the investigation. The ruling called this evidence of “systemic non-compliance” and a “lack of good faith.”
“Access to a safe and affordable car is not a luxury, but a necessity for New Jersey families. Consumers have the right to clear, truthful information when they go through the complex and expensive process of buying a car,” stated Acting Attorney General Jennifer Davenport.
Dealership’s Position and Future Hearings
As reported by local media, the dealership’s attorney, Michael Gilberti, stated that a motion for reconsideration of the case had been filed. The motion claims that the business cannot afford to pay the fines and that the court erred in finding evidence of public harm. The attorney noted that the company had previously contested the charges and the court’s findings. A further hearing in the case is scheduled for February 27.
This case highlights significant pressure from U.S. regulators on car dealerships, especially those dealing with premium and used cars. The severe punishment for violations, including even technical aspects such as font size in disclosures, indicates the priority of protecting consumer rights in complex transactions. The success or failure of the dealer’s motion for reconsideration could become an important precedent for similar cases in the future, defining the balance between the severity of penalties for businesses and their realistic ability to comply.
