South Brunswick Car Dealership to Pay $65,000 to Settle Consumer Affairs Investigation

A South Brunswick car dealership has agreed to pay $65,000 to settle an ongoing Consumer Affairs investigation related to disclosure of information about prior use and damage to used motor vehicles before being sold, and for paying off trade-in vehicles in a timely fashion. 

Edison Motor Cars, Inc., which does business as Brad Benson Hyundai/Mitsubishi, agreed to pay $65,000 and to abide by state laws and regulations for advertisement and sale of used motor vehicles, under the terms of a Consent Order, to resolve an investigation conducted by the State Division of Consumer Affairs.

“Consumers need to know all relevant information about a vehicle before signing a sales contract," said Attorney General Paula T. Dow via press release.  "The dealership is required to disclose these facts, as we’ve reiterated in the terms of this settlement.” 

Customers who filed complaints with Consumer Affairs alleged that the dealership, located at 3095 Route 1 in Monmouth Junction, failed to pay off trade-in vehicles in a timely manner and didn't disclose prior use and/or prior damage to used vehicles that were sold by the dealership.

The attorney general's office said that all existing consumer complaints were resolved by the dealership. In addition, all complaints received by Consumer Affairs related to the dealership over the next year will be forwarded to Brad Benson Hyundai/Mitsubishi for resolution.  

 If the dealership and consumer cannot resolve the complaint, a Consent Order will require the matter to go to binding arbitration in front of the Division’s Alternative Dispute Resolution unit, according to the Attorney General.

The terms of the consent order also stated that Brad Benson Hyundai/Mitsubishi will pay off any loan remaining on a trade-in vehicle within 30 days of taking possession and must use Carfax or a similar service to disclose prior use and prior damage to any used vehicle offered for sale. Brad Benson must also provide the consumer with that information prior to any automotive purchase.

The consent order also requires Brad Benson to include the Buyers Statement that is required by motor-vehicle advertising regulations for any advertisement promoting the sale of a used vehicle, including internet listings.

The attorney general's office stated that auto-related complaints were the single largest category of consumer complaints that were received in 2010. About 1,800 of the 14,000 consumer complaints that were filed with the Division of Consumer Affairs last year dealt with automotive issues.

“You can kick the tires, open the hood, check the body for rust but, unless you are told, you can never see that the car or truck you want to buy was used as a rental vehicle or damaged in a crash and repaired," said Acting Director of the State Division of Consumer Affairs Thomas R. Calcagni via release.  "Consumers must be told about past use and prior damage, as our Consent Order states."