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- Federal Auto Brokers, operating as BM Motor Cars, was found to have hidden vehicle and pricing information from buyers.
- The dealership violated a 2018 consent order and committed 511 violations over a two-month period.
- The court’s order also prevents BM Motor Cars from engaging in deceptive business practices in New Jersey.
The state announced a judgment of more than $840,000 against a Union County used car dealership for defrauding customers over nearly a decade.
Federal Auto Brokers, which operates as BM Motor Cars in Rahway, was found to have withheld critical vehicle and pricing information from buyers, according to Acting Attorney General Jennifer Davenport.
The Superior Court also noted that the dealership violated a 2018 consent order with the Division of Consumer Affairs, marking continued violations of state and federal consumer protection laws, including the New Jersey Consumer Fraud Act.
“Access to a safe and affordable vehicle is not a luxury – it is a necessity for New Jersey families. Consumers have the right to clear, truthful information when navigating the expensive and complex process of buying a car,” Davenport said in a press release announcing the judgement. “We will always stand up for our consumers when corporations seek to defraud them and hide the ball on the products they sell.”
BM Motor Cars has a history of consumer protection violations, according to the state. In 2018, the Division of Consumer Affairs imposed a $55,899 penalty on the company for selling “gray market” vehicles without proper disclosures. The dealership was also required to reform its practices.
Despite this, BM Motor Cars continued to defraud car buyers, resulting in dozens of additional consumer complaints and prompting the 2023 lawsuit, according to the state.
The Superior Court found that the dealership committed 511 violations over a two-month period. The court said the volume of violations and the dealership’s disregard for the 2018 order reflected a “pattern of non-compliance” and a “lack of good faith and observance of fair dealing” that supported enhanced penalties.
The state’s civil complaint alleged that BM Motor Cars engaged in several illegal practices, including hiding prices, requiring illegal inspection waivers and failing to provide odometer disclosure statements. The dealership also continued to sell “gray market” vehicles without the required disclosures.
On Jan. 20, the court granted the state’s request for final judgment and entry of injunctive and monetary relief. In addition to the $793,500 civil penalty, the court ordered BM Motor Cars to reimburse the state $49,276.24 for attorney’s fees and investigative costs.
The order also prevents BM Motor Cars from engaging in any unfair or deceptive acts or practices in the conduct of its business in New Jersey and requires the dealership to comply with all applicable state and federal laws, rules and regulations.
“The judgment against BM Motor Cars holds the dealership accountable for years of misrepresenting and failing to disclose the true condition and mileage of the vehicles they sold,” said Jeremy E. Hollander, acting director of the Division of Consumer Affairs, in the press release. “We will continue to demand honesty and fairness in the motor vehicle sales industry and put a stop to unlawful business practices that undermine consumers’ ability to make informed choices.”
Investigator Kelly Fennell of the Office of Consumer Protection within the Division of Consumer Affairs conducted the investigation.
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