Buying a vehicle is one of the largest financial commitments many households make. New York City officials say dozens of consumers were denied information they needed before signing contracts at a Bronx dealership.
Honda of the Bronx has agreed to pay nearly $130,000 following an investigation by the New York City Department of Consumer and Worker Protection. The settlement includes civil penalties and restitution for customers affected by the dealership’s sales and financing practices.
According to city officials, the dealership admitted wrongdoing as part of the agreement. Investigators said they uncovered a pattern of conduct that violated consumer protection laws over a period spanning several months.
The case is among a series of enforcement actions aimed at used-car dealerships in New York City. Officials say the goal is to address practices that increase vehicle costs and limit consumer rights during the purchasing process.
Investigation Found Hundreds of Violations
The Department of Consumer and Worker Protection announced that its investigation found more than 350 violations connected to Honda of the Bronx, which operated from East Tremont Avenue in the Bronx. Officials said the violations were not isolated incidents but part of a broader pattern uncovered during a multi-month review.
Among the findings were allegations that vehicles were advertised at one price and sold at another. Investigators said dozens of customers paid amounts that exceeded advertised prices.
The city also alleged that the dealership sold vehicles while not properly licensed and failed to provide documents explaining consumer rights. Investigators further found that some buyers were not given complete information about loan terms and financing costs before completing transactions.
Officials said some customers were also denied forms and options needed to cancel certain purchases or agreements. The city described those practices as “cancellation traps” that limited consumers’ ability to exercise their rights.
Terms of the Settlement
Under the agreement, Honda of the Bronx will pay $61,499 in civil penalties and $68,500 in restitution to affected consumers, bringing the total settlement amount to $129,999. The dealership also admitted to the violations identified by investigators.
In addition to the financial payment, the dealership must change how it advertises and sells vehicles. The order requires “all-in” pricing, meaning advertised vehicle prices must reflect the full cost rather than excluding mandatory charges that are added later in the sales process.
The agreement also requires the dealership to provide cancellation forms where required and honor consumers’ rights to cancel eligible products and services. City officials say these measures are intended to increase transparency during vehicle purchases.
According to Automotive News, the dealership changed ownership in August 2025, shortly before enforcement action was initiated. Current owner Scott Jacobs told local media that the violations occurred under previous management and that the business has since implemented changes.
Jacobs said the dealership now operates with new personnel in sales, finance and management positions. He also said the company has introduced compliance measures, employee training programs and pricing disclosures intended to prevent future violations. While acknowledging that the violations occurred, Jacobs maintained that the issues were linked to prior operations and not the current management team.
Broader Crackdown on Used-Car Sales Practices
The action against Honda of the Bronx forms part of a wider effort by New York City officials to police conduct in the used-car industry. The Department of Consumer and Worker Protection says it has investigated 106 dealerships over the past five years, secured nearly $2 million in restitution for consumers and collected more than $6.5 million in civil penalties. The agency says it has assisted more than 675 consumers during that period.
Officials argue that vehicle purchases carry significant financial consequences for families and that buyers must receive complete information before signing contracts. The Honda of the Bronx settlement adds another chapter to the city’s campaign against deceptive pricing, financing disclosures and sales practices in the used-vehicle market.