PR & News Car dealership accused of illegally tacking on thousands in hidden fees

[Jeff Kershner]

The Maryland Attorney General's Office has filed administrative charges against a Bowie car dealer. Prosecutors accuse Darcars Honda on Crain Highway in Bowie of unfair and deceptive sales practices in violation of the state's Consumer Protection Act.

The dealership allegedly posts prices online for well below what buyers end up having to pay. Hidden fees are what catch customers off-guard.

According to the Attorney General, Darcars charges an extra 2 percent of the car value under the guise of "sales commission." The dealer claims the fee is optional but they reportedly don't tell the consumer that it is. Despite being listed as "sales commission," the state says Darcars employees see none of that two percent. In fact, prosecutors argue Darcars instead pockets the money to offset commission they pay their workers. On top of that, Darcars is said to charge an additional $895 for preinstalled equipment that's supposed to already be included in the sales price.

Again, Darcars insists such equipment is optional under what they call the "Honda Value Package."

Prosecutors, however, dispute that. They believe buyers are left with no choice since the dealership already installs the parts without their prior knowledge. Another misleading practice is the dealer's failure to let customers know up front about a $500 processing charge which lawfully accompanies every purchase of a new or used car.

A hearing is scheduled for October 29 through November 8.

The state is seeking restitution and a court injunction forcing Darcars to halt their deceptive practices.

A spokesperson at the Honda of Bowie sent us the following statement:

"Over the last two years, Honda of Bowie has cooperated fully with the Maryland Attorney General to respond to its request for information and address its concerns. This is an instance where the premise of the case is not supported by the record or the facts.


We feel confident about our level of disclosure on this matter and proactively sought to partner with the Attorney General to establish new industry best practices that could benefit all Maryland consumers. We are prepared to defend our company and our lawful practices in court against these baseless claims, while continuing to provide our customers with the industry’s best service in every market we serve."

A full copy of the charges can be read here.

 

[Tallcool1]

I can't help but wonder how many more states are going to jump in on this. I don't know that every state has dealers doing business like this, but I am certain that most do.

 

[Richie K]

Shady business practices like this is why we often get customers walking into the showroom with a chip on their shoulders and on the defensive side. Once they realize we aren't "that other dealership down the road" it works out great for everyone involved.
We simply don't do shady business.

 

[BillVaughnKMC]

GOOD

 

[Jon Singo]

Bad actors in our industry need to be held accountable but I have a nagging feeling these sort of lawsuits are going to potentially bring everyone else down with them.

Public opinion of dealers took a huge hit during Covid and it's not a stretch to imagine a headline to the tune of 'Maryland dealer crushed by attorney general over illegal scamming of customers'. Outage bait sells and I'm sure you can see what this snowballs into.

I guess what I'm getting at is, right now more than ever, you need to make sure all of your store's practices are on the right side of history. The Cars act hasn't passed yet but I'd start operating as if it did.

 

[Carsten]

This sucks.

 

[BillVaughnKMC]

Bad actors in our industry need to be held accountable but I have a nagging feeling these sort of lawsuits are going to potentially bring everyone else down with them.

Public opinion of dealers took a huge hit during Covid and it's not a stretch to imagine a headline to the tune of 'Maryland dealer crushed by attorney general over illegal scamming of customers'. Outage bait sells and I'm sure you can see what this snowballs into.

I guess what I'm getting at is, right now more than ever, you need to make sure all of your store's practices are on the right side of history. The Cars act hasn't passed yet but I'd start operating as if it did.

Agreed. As happy as I am that people that pull this crap get busted, I know that they will keep diving further and further into this until really absurd suits start getting through once the Cars Rule gets put in place. I understand wanting to keep dealers honest, but the deeper parts of it hold dealers to an absurd standard very few industries are held to.