Registrar's Decision 07-70910

Issues:

• Dealer amalgamated rebates, incentives, trade-in value and price reduction into one numerical trade-in allowance on the Bill of Sale and did not fully explain these discounts to the consumer.
• Dealer was found to have given a lesser trade-in value for the consumer’s vehicle than agreed and took advantage of the consumer’s inability to understand the numbers on the Bill of Sale.

Outcome:

• Dealer’s conduct fell far short of the proper business practices consumers and the motor vehicle sales industry expects of a Registered Motor Dealer. The Dealer’s conduct was found to be both a deceptive and an unconscionable act.
• Dealer ordered to refund the consumer the unpaid trade-in difference plus tax benefit ($1778.02).
• A condition was placed on the Dealer’s license to explain and provide to consumers a detailed written explanation of all incentives, trade-ins and/or rebates being offered.
• Dealer ordered to reimburse the VSA investigation and hearing costs.
• Dealer ordered to pay a $10,000.00 Administrative Penalty.

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