South Jersey Car Dealership Charged With Fraud, Advertising Violations

A used car dealership in South Jersey stands accused of failing to disclose prior motor vehicle damage or prior fleet use of motor vehicles to consumers, and a failure to honor warranties, among other charges.

The New Jersey Division of Consumer Affairs has filed a lawsuit against Vineland-based AutoSource Group, LLC.

The seven-count complaint alleges that AutoSource Group violated the Consumer Fraud Act, the Automotive Sales Regulations, the Motor Vehicle Advertising Regulations and the Used Car Lemon Law and related regulations.

The State is seeking consumer restitution, reimbursement of attorneys’ fees and costs, and civil penalties that range up to $10,000 for each violation of the statutes and/or regulations committed by AutoSource Group.

AutoSource Group allegedly failed to disclose prior damage before the sale of 17 used cars, and allegedly failed to disclose prior fleet use before the sale of five others.

AutoSource Group also allegedly advertised at least 22 used cars without the required disclaimer that “prices include all costs to be paid by a consumer, except for licensing costs, registration fees and taxes.”

AutoSource Group also allegedly failed to itemize processing fees for consumers as required by law.

“The average used car price hit a record $16,800 nationally last year and higher prices are expected in 2015,” Acting Attorney General John J. Hoffman said. “Obviously, used cars can be expensive, and consumers deserve and expect that dealers will provide them information on the quality of vehicles they are purchasing. We are alleging that AutoSource Group failed to do that. The condition and prior use of a vehicle determines its value, and by allegedly hiding key facts about condition and prior use from consumers, AutoSource Group deceived consumers in order to sell vehicles at higher prices.”

“AutoSource Group, through its alleged actions, ignored the laws and regulations that are designed to protect consumers who are purchasing used cars and trucks,” Acting Director of the New Jersey Division of Consumer Affairs Steve Lee said. “Through our action, we are seeking to hold the dealership accountable for these alleged violations of law.”

From 2011-2014, AutoSource Group also allegedly failed to pay the 50 cent administrative fee for each used car sold, as required by the Used Car Lemon Law and UCLL regulations.

It also allegedly failed to respond to customers in a timely manner and did not honor warranties when consumers complained about problems with the motor vehicles they purchased.

The Attorney General’s Office suggests anyone who purchased a used car from AutoSource Group and experienced problems should file a complaint immediately with the State Division of Consumer Affairs by visiting its website www.njconsumeraffairs.gov or by calling 1-800-242-5846 (toll free within New Jersey) or 973-504-6200.