- BM Motor Cars failed to include dealer fees in the advertised list prices.
- The dealer will have to reimburse the state almost $50,000 in attorney’s fees.
- A court found the dealer made 511 violations in just a two-month period.
A New Jersey car dealership that advertises several luxury models on its website has been ordered to pay $842,776.24 after state authorities claim it repeatedly defrauded buyers and relied on deceptive sales tactics. The dealership, BM Motor Cars, was also cited for violating a prior 2018 consent order that had penalized it for selling gray-market vehicles.
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The state sued BM Motor Cars in 2023, alleging multiple misdemeanors tied to its advertising and sales practices. According to the complaint, the dealership failed to include dealer preparation fees in the list prices shown in its online ads.
Acting Attorney General Jennifer Davenport said the dealership hid the true purchase price by “failing to include dealer preparation fees in the list price on its online advertisements, and failing to display on its website, in the required font size, the statement “price(s) include(s) all costs to be paid by the consumer, except for licensing costs, registration fees, and taxes,” as required under New Jersey’s Motor Vehicle Advertising Regulations.
Advertising Violations And Online Disclosures
In addition, the state alleged that BM Motor Cars required some consumers to waive their right to purchase a used vehicle that met New Jersey inspection standards. The complaint further claims the dealership failed to provide buyers with disclosures of known defects that could affect a vehicle’s ability to pass inspection
Authorities also alleged the dealership failed to provide copies of signed odometer disclosure statements showing mileage at the time of ownership transfer. Prosecutors said BM Motor Cars did not provide required disclosures concerning gray-market vehicles, which may not meet US safety or emissions standards.
Late last month, the Superior Court in Union County imposed a $793,500 civil penalty against BM Motor Cars for the violations cited in the case. The court also ordered the dealership to reimburse the state $49,276 for attorney’s fees and investigative costs.
Beyond the financial penalties, the court directed the dealership to cease any deceptive practices and comply with all applicable state and federal laws going forward.
According to the court, BM Motor Cars committed at least 511 violations over a two-month period during the investigation. The ruling described this as evidence of a “pattern of non-compliance” and a “lack of good faith and observance or fair dealing”.
“Access to a safe and affordable vehicle is not a luxury—it is a necessity for New Jersey families. Consumers have the right to clear, truthful information when navigating the expensive and complex process of buying a car,” Acting Attorney General Jennifer Davenport said.
According to NJ.com, the dealership’s attorney, Michael Gilberti, said a motion for reconsideration has been filed. The motion argues the business cannot afford the penalties and claims the court erred in finding evidence of public harm
“The company has previously contested the allegations and the court’s findings to date,” Gilberti told the news outlet. A hearing is scheduled for Feb. 27.
