Philly Auto Dealers Accused Of Deceptive Business Practices: PA Attorney General

Pennsylvania Attorney General Bruce Beemer announced penalties for several Pennsylvania auto dealers who were found to be using deceptive business practices. Two of those are in Philadelphia and were hit with thousands in fines for their tactics, Beemer's office said.

Salespeople at Luxury Brokers International, LTD allegedly conducted business separate and apart from their
associated dealership, Beemer's office said.

The business was hit with a civil penalty of $10,000, the AG's office said.

Ameri Motors, Inc. was found to be selling unroadworthy vehicles, Beemer's office said.

The business was allegedly offering vehicles for sale that were not roadworthy and was allegedly
advertising vehicles “as-is” while at the same time offering limited warranties.

$24,000 in restitution for affected customers was obtained through an assurance of voluntary compliance, according to the AG's office.

Businesses in Lackawanna, Dauphin, Cumberland, Allegheny, and Delaware counties were also among those named by Beemer's office. A Delaware County dealer has had a lawsuit filed against it for its practices.

The legal actions on the heel of Attorney General's Bureau of Consumer Protection investigations in 2016, according to Beemer's office.

The AG's office offered tips to know when dealing with auto sales:

• Comparison shop – Use services like TrueCar, Edmunds, Kelly Blue Book and others to estimate the lowest price you should pay for a new or used vehicle. Research multiple dealerships and get quotes to determine which dealer has the best price.
• Pay attention to advertising – Television and print ads do not spend a lot of time disclosing all of the terms of the agreement. Be mindful when an ad claims “1.9% APR” that it may be approved credit only or qualified buyers only. Ads will make enticing statements to reel you in.
• Purchase from a licensed dealer – Make sure you verify that the vehicle you are about to purchase is being sold from a licensed dealer. Vehicles sold privately do not carry with them the same protections under the law as vehicles sold by licensed dealers. Many scam artists find vacant lots and post ads on Craigslist to give the appearance of a real dealership. You can verify whether a car dealer is licensed by the State Board online here.
• Look over the vehicle – Whether you bring a mechanic along or conduct a thorough test drive, remember that most used vehicle purchases are outside of a manufacturer’s warranty and any needed repairs after purchase could be your responsibility. Also remember that Carfax and AutoCheck do not always provide a complete history of the vehicle, as not all of their sources report to them accurately and regularly. Be mindful to check for limited warranties offered by the dealer and review the terms of any third-party extended warranty plan that is offered at additional cost to make sure it covers a wide array of items.

Anyone who wants to file a complaint about a new or used vehicle they recently bought should contact the AG's office by phone at 800-442-2555 or online at

Consumers who wish to file a complaint regarding their purchase of new or used motor vehicles are encouraged to call 1-800-441-2555 or visit the AG's website here.

Image via Laitr Keiows, Wikimedia Commons