A New Jersey luxury car dealership, BM Motor Cars, has been ordered to pay $842,776.24 in penalties after state authorities found it repeatedly misled customers and violated prior court orders. The case highlights how aggressively regulators are moving against auto dealers for failing to follow advertising rules.
Repeated Violations & Prior Penalties
The state lawsuit, filed in 2023, alleges BM Motor Cars engaged in deceptive sales tactics by hiding mandatory dealer preparation fees from advertised prices. This is not the first time the dealership has faced such allegations: it was previously penalized in 2018 for selling illegally imported “gray-market” vehicles that don’t meet US safety standards. The current ruling found at least 511 violations over just two months, which the court described as a clear pattern of disregard for consumer protection laws.
The Details: Hidden Fees & Missing Disclosures
Acting Attorney General Jennifer Davenport stated that the dealership deliberately obscured the true cost of vehicles by failing to include dealer fees in online ads. Even more critically, BM Motor Cars allegedly failed to display a required disclaimer in the correct font size, a seemingly minor detail that carried major legal weight.
The state also claims the dealership pressured customers into waiving their right to buy inspected vehicles, and failed to disclose known defects that could affect a vehicle’s safety. In some cases, buyers were not provided with required odometer statements, making it harder to verify vehicle history.
Financial & Legal Consequences
The Superior Court in Union County imposed a $793,500 civil penalty, plus $49,276 to cover the state’s legal and investigative costs. The court ordered the dealership to stop all deceptive practices and comply with state and federal laws.
Dealer Response & Next Steps
BM Motor Cars’ attorney, Michael Gilberti, has filed a motion for reconsideration, arguing the penalties are unaffordable and that the court made errors in its findings. The dealership maintains it has contested the allegations and continues to do so. A hearing on the motion is scheduled for February 27.
“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,” Acting Attorney General Jennifer Davenport said.
The case demonstrates how seriously regulators are treating transparency in auto sales, and how even seemingly small violations like incorrect font sizes can result in massive financial penalties.
