Honda of the Bronx, a used auto shop at 2541 East Tremont Ave., was fined by the city and ordered to end what the city called “widespread deceptive business practices,” Mayor Zohran Mamdani announced today.
The investigation by the Department of Consumer and Worker Protection (DCWP) found Honda of the Bronx committed more than 350 violations under previous management that sold the business to new owners as of August 1, 2025 — just 1o days before DCWP came knocking.
The violations included operating without proper licensure; failing to inform customers of financing details, such as loan terms and total costs; “baiting and switching” by selling vehicles at higher-than-advertised prices; and withholding required documents explaining customers’ rights.
The dealership also held some customers in “cancellation traps” by failing to provide options or forms for them to cancel their purchases.
The current owner of Honda of the Bronx, Scott Jacobs, told the Bronx Times that the previous owners had “major issues,” one of which was relying entirely on paper documents, which made it easy to skip some of the required paperwork. The cited violations did occur, but not under his watch, he said.
Jacobs said the business is now “a whole new operation” and is described on Instagram as being”under new management.” He explained that Honda of the Bronx is properly licensed and was already approved, but not yet finalized, when DCWP took enforcement action.
Today, Jacobs said the dealership has all new employees in sales, financing and management; a new website listing all upfront costs for used vehicles; a dedicated compliance department with mandatory staff trainings; and other measures aimed at transforming the previously troubled dealership.
Nonetheless, Jacobs said he and his team were left holding the bag when it came to city enforcement.
The company admitted wrongdoing and was ordered to pay a total of $129,999 in fines and customer restitution, according to DCWP. The business was required to provide refunds to affected buyers and change its past practices.
Mayor Mamdani said in a statement that his administration “will use every tool we have” to hold businesses accountable for mistreating customers.
“Buying a used car shouldn’t be a gamble. But too many dealerships are baiting working people with one price, then charging another, hiding the true cost of loans and locking consumers into contracts designed to keep them trapped in debt. That is illegal, it is exploitative and it is making life even harder for New Yorkers already struggling to get by,” Mamdani said.
DCWP Commissioner Samuel A.A. Levine said in a statement that the agency is committed to protecting car buyers’ rights.
“Once a cornerstone of personal freedom and mobility, car ownership is increasingly slipping out of reach for many Americans. Used auto dealerships can offer more affordable options, but too often they’re rife with hidden fees, bait-and-switch tactics, and predatory financing that drive costs even higher,” Levine said.
“That’s exactly the kind of deception we’re putting in the rearview mirror. DCWP will not hesitate to exercise our authority against businesses that flout our laws, cut corners with impunity, and steer New Yorkers in the wrong direction.”
Amid the city’s affordability crisis, DCWP has ramped up efforts to crack down on used auto businesses that scam customers during one of their most important financial decisions.
In the past five years, DCWP has helped more than 675 impacted consumers by investigating 106 used car dealerships and ultimately securing nearly $8.5 million in penalties and restitution.
Honda of the Bronx is not the only dealership in the borough that caught the city’s attention.
Following a multiyear investigation, DCWP is currently in trial against Victory Mitsubishi/Spartan Auto at 4070 Boston Road, which it says has “a long track record of scamming New Yorkers.”
Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, subscribe to our newsletter and follow us on Twitter, Facebook and Instagram!
