JF Motors of Northern Blvd agrees to $375,000 settlement
Three used car dealerships in a one-mile span on Northern Boulevard in Woodside have been stripped of their license to operate for at least two years, and are facing civil penalties for over 10,000 violations of the City’s Consumer Protection Law.
The City’s Department of Consumer and Worker Protection announced a $375,000 settlement with the Queens-based dealerships, which includes $225,000 in total restitution for customers and payment towards the city of $150,000 in civil penalties.
All three dealerships—Automania (4309 Northern Blvd.), Luxury Automotive Club (5511 Northern Blvd.) and World Auto (6107 Northern Blvd.), are run by JF Motors and are ordered to surrender their licenses, which prevents them from operating a used car dealership for at least two years.
DCWP charged the dealerships with deceptive advertising and falsely marketing some of their cars as “Certified Pre-owned”. Despite often marketing their cars as “Certified Pre-owned” by the National Independent Automobile Dealers Association, JF Motors did not conduct the required 125-point inspection, nor did they give buyers the promised 10-year/100,000 warranty or provide a vehicle history report, says DCWP.
JF Motors unlawful conduct includes the use of illegal contracts, the overcharging out-of-state buyers for bogus fees, and failing to provide documents to consumers in Spanish, even though the deal was negotiated in Spanish.
As part of the settlement, 16 consumers are getting restitution totaling $199,600, leaving just over $25,000 available for new complainants.
“When New Yorkers buy a used car, they expect to get a fair and honest deal,” DCWP Commissioner Vilda Vera Mayuga said. “With this settlement, we are delivering thousands of dollars in restitution for the victims of JF Motors and sending a clear message to the used car industry that DCWP will hold them accountable if they choose to deceive their customers.”
JF Motors could not be reached for comment, as their business phone number was recently disconnected.
The violations leveled against the dealerships go against some of the rules put in place by the city’s Department of Consumer Affairs in 2018, put in place to combat predatory sales and financing practices in the used car industry. Since June 2018, used car dealerships in New York City are required to provide consumers with a Consumer Bill of Rights, a financing disclosure form, where applicable, and a cancellation option.
The settlement was handled by Senior Staff Counsel Bradley McCormick, under the supervision of Associate General Counsel Adem Blumenkratz of the General Counsel Division, which is led by Acting General Counsel Michael Tiger.
Mayor Eric Adams applauded the work of DCWP for delivering the settlement six months after the agency filed cases against the Queens-based dealerships.
“Preying on New Yorkers looking to buy a used car is not only unacceptable, it’s illegal,” Mayor Adams said.
DCWP currently licenses 505 used car dealerships and has received over 5,638 complaints about the industry over the past five years. In the same time frame, the agency has conducted nearly 3,000 inspections, issuing more than 1,156 violations, with a majority of them for failure to post required signs, parking or storing cars on the sidewalk, and missing price disclosures. DCWP has secured over $1.8 million in consumer restitution and over $4.6 million in fines against used car dealerships in the past five years.
“Protecting New York City consumers from scams and fraud is one of our most important responsibilities in government,” Deputy Mayor for Economic and Workforce Development Maria Torres-Springer. “I commend the Department of Consumer and Worker Protection for holding these dealerships accountable for breaking the law and securing thousands in restitution for consumers.”