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State Attorney General Gurbir S. Grewal said Auto Holding Inc. was cited for:
- misrepresenting the condition of its used motor vehicles, telling at least one customer that vehicles were serviced and/or inspected prior to sale, when that was not the case;
- failing to disclose prior damage and rental history when such information was known or should have been known by the dealership;
- misrepresenting the prior history and use of its used motor vehicles, showing at least one customer a clean Carfax report when in fact the true report revealed prior accident and rental history;
- failing to honor the advertised price, requiring consumers to present a copy of the online advertisement and obtain a manager’s signature to receive the advertised price; and
- failing to pay off a third-party warranty after selling the warranty to a customer.
The settlement resolves violations of the state Consumer Fraud Act and Used Car Lemon Law, as well as other regulations governing the sale and advertising of motor vehicles, Grewal said.
Auto Holding, with locations in Hillside (Route 22) and Mountain Lakes (Route 46), “agreed to change [its] business practices, pay civil penalties, and enter binding arbitration to resolve consumer complaints,” the attorney general said.
The company also agreed to enter binding arbitration to resolve 21 complaints from affected consumers, as well as for any additional consumer complaints, for a year, he added.
The state, in return, agreed to suspend $30,000 in civil penalties if Auto Holding completes that one-year period without violating the terms of a consent order with the state Division of Consumer Affairs, Grewal said.
“Buying a car is one of the biggest purchases most consumers make in their lifetimes,” the attorney general said. “Buyers shouldn’t have to worry about being misled by deceptive practices.”
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ALSO SEE: A Bergen County used car dealer is paying $60,000 to resolve violations of state consumer protection laws, authorities said.
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Investigator Kelly Fennell of the DCA's Office of Consumer Protection, and Deputy Attorney General Robert N. Holup of the Consumer Fraud Prosecution Section handled the case for the state.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the Division of Consumer Affairs by visiting njconsumeraffairs.gov or by calling 1-800-242-5846 to receive a complaint form by mail.
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