Photo: NYC Mayor's Office via Youtube
Tight vehicle inventories have altered the market to the point that the MSRP does not mean anything. Used vehicles are also affected because production glitches have pushed customers to look for alternatives on the used-car market. In this environment, dealerships have resorted to some shady practices to extort customers.
We’ve heard countless stories about dealerships that have no remorse in making money on their unsuspecting customers. We’ve seen everything from huge markups to withholding the most in-demand models for selling on the used-car market to the highest bidder. Or so we thought, although we admit, reading about Brooklyn Mitsubishi and Brooklyn Volkswagen dealerships in New York far exceeded our imagination.
In a viral case, Karinie Olivero wanted to buy a 2017 Jeep Grand Cherokee from Brooklyn Mitsubishi at the advertised price of $27,994. Olivero paid a $10,000 downpayment in June 2018 and was “rushed” through the documents. She was ultimately charged $36,585 for the Grand Cherokee. When she complained, Olivero was told that she didn’t qualify for the sale price because of her credit.
“I wanted to buy a car to provide a better life for myself and my family,” Olivero said in a statement cited by Automotive News. “But these dealerships preyed on consumers like me with false and misleading information, and they failed to notify me of my rights under the law.”
This is just one example of deceptive trade practices at dealerships. Brooklyn Mitsubishi and its used-vehicle business were involved in many of the 13 administrative law counts alleged by the New York City Department of Consumer and Worker Protection. These included more than 7,000 instances of deceptive trade practices for which the accused parties, including the dealerships’ parent companies and management, must collectively pay a $500,000 penalty and $304,900 worth of restitution to consumers.
“We are helping deliver more than $300,000 back into the pockets of New York City consumers who were ripped off by Brooklyn Mitsubishi and Brooklyn Volkswagen and are stopping their unlawful behavior dead in their tracks,” New York City Mayor Eric Adams said in a statement July 15.
To end the case, the accused parties pleaded guilty to accusations like selling used vehicles for more than the price advertised, selling recalled used cars without providing NHTSA information, and submitting false, misleading, and deceptive credit applications and contracts to a finance company. The city said some of these were violations committed after the department alerted the dealership about advertising it found misleading.
In a viral case, Karinie Olivero wanted to buy a 2017 Jeep Grand Cherokee from Brooklyn Mitsubishi at the advertised price of $27,994. Olivero paid a $10,000 downpayment in June 2018 and was “rushed” through the documents. She was ultimately charged $36,585 for the Grand Cherokee. When she complained, Olivero was told that she didn’t qualify for the sale price because of her credit.
“I wanted to buy a car to provide a better life for myself and my family,” Olivero said in a statement cited by Automotive News. “But these dealerships preyed on consumers like me with false and misleading information, and they failed to notify me of my rights under the law.”
This is just one example of deceptive trade practices at dealerships. Brooklyn Mitsubishi and its used-vehicle business were involved in many of the 13 administrative law counts alleged by the New York City Department of Consumer and Worker Protection. These included more than 7,000 instances of deceptive trade practices for which the accused parties, including the dealerships’ parent companies and management, must collectively pay a $500,000 penalty and $304,900 worth of restitution to consumers.
“We are helping deliver more than $300,000 back into the pockets of New York City consumers who were ripped off by Brooklyn Mitsubishi and Brooklyn Volkswagen and are stopping their unlawful behavior dead in their tracks,” New York City Mayor Eric Adams said in a statement July 15.
To end the case, the accused parties pleaded guilty to accusations like selling used vehicles for more than the price advertised, selling recalled used cars without providing NHTSA information, and submitting false, misleading, and deceptive credit applications and contracts to a finance company. The city said some of these were violations committed after the department alerted the dealership about advertising it found misleading.
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