N.J. Says These Car Dealerships Are Ripping You Off

New Jersey’s used car dealer industry - specifically at multi-dealer locations - is allegedly plagued by widespread corruption, and a state new report charges that a number of locations, combined, owe as much as $10 million in taxes and allegedly make suspicious financial transactions.

The State Commission of Investigation’s report, entitled “Gaming the System,” alleges that:

• State Motor Vehicle Commission officials felt pressure from lobbyists to allow multi-dealer locations to circumvent regulations.
• At least one multi-dealer location is allegedly owned and operated by people linked to organized crime, and has been known to state regulators and law enforcement authorities as a shelter for fraud.
• New Jersey’s ability to regulate and license the used car industry is weak.

In one example, the report cited “sworn testimony” from MVC personnel assigned to the agency’s Business Licensing Services Bureau that described circumstances in which efforts to scrutinize these dealers and enforce regulations were “frustrated, delayed or derailed by questionable or inappropriate intervention.”

“Dealer license applications were ordered approved over the objections of line staff,“ the report said. “Violation notices were interfered with, lessened or waived.“

MVC officials, car dealers and a lobbyist disputed the report in the the appendix of the report.

The SCI recommended:

• Reorganize licensing, oversight and enforcement
• Broaden the basis for denying licenses for certain crimes
• Address the wholesale dealer licensing gap
• Require dealer financial disclosure and transparency
• Adopt a used‐car buyers bill of rights and end “as-is” sales
• Strengthen New Jersey’s lobby-disclosure requirements

The report identifies the following 11 dealers where, “over the years, two efforts have been undertaken to crack down on questionable and unscrupulous activity:”

• New Jersey Dealers Auto Mall in Bridgeton, Cumberland County, with 1,214 dealers
• Caesar Corp in Hasbrouck Heights, Bergen County, with 243 dealers
• WNAG Realty LLC, 60 Asbury Rd., Hackettstown, Warren County. 240 dealers
• Ledgestone Associates LLC in Newark, Essex County, with 145 dealers
• Dealer Management Services Inc. in Newfoundland, Passaic County, with 133 dealers
• Duelly Holdings LLC in Toms River, Ocean County, with 118 dealers
• Foxcreek Inc., Teterboro, Bergen County, with 91 dealers
• George Yelland Inc. in Delran, Burlington County, with 89 dealers
• Richard Catena in Teterboro, Bergen County, with 81 dealers
• Dreese Property LLC in Hasbrouck Heights, Bergen County, with 70 dealers
• Don‐Lynn Inc. in West Creek, Ocean County, with 26 dealers