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, including 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 business, located in Westchester Square, 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.
The business is “under new management,” according to its Instagram account. The Bronx Times contacted the dealership but did not hear back in time for publication.
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!
