A HONDA dealership has been forced to pay $3 million in a settlement after complaints about add-on charges.
Drivers who believe they’re entitled to some cash should submit a claim.
GettyA Honda dealership paid $3 million to customers after charging phony add-on fees[/caption] DARCARS HondaDrivers who were affected should submit a claim[/caption]A Honda dealership in Prince George County, Maryland agreed to pay millions after fielding consumer complaints about bogus fees, as reported by a CBS Washington affiliate, WUSA.
Attorney General Anthony G. Brown filed the lawsuit against DARCARS Honda of Bowie over the summer.
The U.S. Sun reached out to the attorney general’s office which provided a full statement that was issued on March 5.
“Buying a car is one of the most expensive purchases that someone makes in their life,” Brown said in a press release.
“Marylanders shouldn’t pay even more because of a dealer’s unauthorized sales practice. This settlement reflects our Office’s commitment to protecting consumers from unfair business practices that violate the law.”
According to the lawsuit, DARCARS must pay the “salescommission” fees they charged consumers and refundconsumers who submit valid claims.
The dealership will also pay for the difference between the the price consumers saw and the actual sales price of the vehicle from DARCARS Honda.
This only applies to customers who purchased a vehicle from the dealership between January 1, 2019, and May 10, 2022.
The car shop is also required to pay consumers who purchased any add-on products on or after January 1, 2019, without knowing, the lawsuit states.
The lawsuit also states that the dealership is not allowed to charge any so-called “sales commission fees” or any similar fees from here on out.
“They may not advertise vehicle prices for less than the full delivered price, excluding fees for taxes, tags, and title, and must includemarkups and charges for equipment in the advertised price,” the press release reads.
Car dealership add-on fees can include documentation fees, destination fees, and market adjustments.
There are so many different kinds of fees that consumers are being forced to pay at the car dealership without being aware of them.
One common fee is called the documentation fee, or doc fee, which allegedly covers the cost of processing paperwork like the sales contract and car registration.
Honda of Bowie Full Statement
“While Honda of Bowie reached an agreement with the Attorney General’s office, we were fully prepared to prove in court that our practices are consistent with the law and industry standards. Today’s resolution is simply a business decision that allows the dealership to avoid the expense and distraction of litigation. We remain committed to offering our customers exceptional value and service on their vehicle purchases, as has always been our mission. Any Honda of Bowie customer that has a question about this agreement can contact us at 1-866-841-9300.”
Source: CBS’s Washington D.C. local affiliate, WUSA
Usually, the price of doc fees can vary widely, from less than $100 to hundreds of dollars.
Another popular add on fee is a destination fee which is charged by manufacturers to ship a new car to the dealership.
The destination fee is said to cover the cost for preparation of the vehicle and logistical costs.
Drivers can negotiate some of these fees with the dealership, but they can’t refuse to pay sales tax.
The Federal Trade Commission has taken action to regulate add-on fees and push for transparency between dealerships and drivers.
DARCARS Honda of Bowie did not immediately reply to The U.S. Sun’s request for comment.
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