Burlington Car Dealership Reaches $58K Settlement With State

The state has reached a $58,000 settlement with a car dealership in Burlington County after several customers accused them of refusing to honor advertised prices of vehicles, failing to disclose known vehicle history, and cancelling warranties without notifying customers or issuing refunds, among other deceptive tactics.

Royal Auto Group of Burlington Township has agreed to change its practices, pay a settlement of $55,000 in civil penalties, $3,700 in investigative costs, and enter binding arbitration with those who say the used car dealership defrauded them, authorities announced on Thursday.

Royal Auto Group agreed to the terms under a Consent Order that settles the state’s investigation into allegations that the dealership committed multiple violations of the New Jersey Consumer Fraud Act, the Motor Vehicle Advertising Regulations, the Automotive Sales Practices Regulations, the Used Car Lemon Law, and the Used Car Lemon Law Regulations, according to authorities.

• advertising used cars for sale without including all charges due;
• failing to disclose prior vehicle damage;
• charging customers for separately for pre-delivery services, including dealer preparation fees without itemizing the price for each actual documentary service performed;
• failing to disclose prior damage, grey market and rental histories of used motor vehicles for sale; and

charging customers for warranties that were later canceled without disclosing the cancellation or issuing a refund.

“New Jersey consumers expect and deserve honesty and transparency as they navigate the sometimes-stressful process of purchasing a used motor vehicle,” Attorney General Gurbir S. Grewal said. “This settlement sends a message to dealerships that they cannot get away with deceiving consumers for profit.”

“Buying a used car should not be a guessing game,” said Kaitlin Caruso, Deputy Director of the Division of Consumer Affairs. “Consumers have a right to know the known history and full price of vehicles they are purchasing and that a warranty they purchase will be in full force if they ever need to file a claim.”

Some of the ways Royal Auto Group agreed to change the way they do business include:

• not engaging in unfair or deceptive business practices;
• Maintaining documentation of all advertisements of motor vehicles leased or sold to customers for 180 days from the date of lease or sale;
• disclosing prior vehicle damage, grey market history and/or rental history of used motor vehicles to customers;
• including in its advertisements the required language and itemizing all costs to be paid by the consumer except for licensing costs, registration fees, and taxes; and
• ensuring all warranties sold to customers are issued in the customer’s name and to their car, and issuing refunds if there are processing errors.

In addition to the binding arbitration addressing pending customer complaints, Royal must address any customer complaints received over the next two years or those will also be referred for binding arbitration.

Anyone who believes they have been cheated or scammed by a business, or who suspects any other form of consumer abuse, can file an online complaint with the Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 to receive a complaint form by mail.