2024 Honda CR-V Buyer Says, “I Paid Phony Charges to the Dealer, The Manager Said Buyers Pay the Salesperson’s Commission, He Told Me It’s A New Law”

"The Honda manager told me it was a new law. That the buyer now pays the sales commission."

According to a report from WUSA9 in Maryland, a recent widow, Renee Boyd Rogers, was the victim of deceptive practices by a Honda dealer. She was charged phony sales fees when she purchased a new 2024 Honda CR-V. 

WUSA9 says, " A Honda dealership in Prince George's County agreed to pay $3 million to the Maryland attorney general and pay some of its customers back, on Wednesday after a settlement in a state lawsuit over alleged phony surcharges."

The report says that a lawsuit against DARCARS Honda of Bowie was filed over the summer by Attorney General Anthony G. Brown, alleging dealers violated the Maryland Consumer Protection Act by adding an extra 2% to their cars, labeled as a "sales commission," that dealership claimed was "optional." 

Renee Boyd Rogers of Centreville, Maryland, is one of the Honda customers hoping to get their money back. She was forced to pay about $700 more than the actual cost of the new Honda CR-V, a significant amount for someone on a fixed income.

The Salesperson Brushed Off Renee's Concerns 

Renee said she noticed the extra sales commission fee while signing papers, but the salesperson brushed off her concerns. 

"The manager told me it was a new law. That the buyer now pays the sales commission," Renee said. 

"I told him that I was a recent widow and was on a fixed income, and that was not in my budget. He said, 'Well, you will be included in the financing, so it is really not out of pocket per se.'" 

Renee said she had only a short time to buy a new car because of her insurance's limits on covering a rental replacement car she was driving. 

"So, I reluctantly signed. When I talked to my son afterward, he was very angry and wanted to go to the dealership, but I wouldn't let him," Renee said. 

The dealership at 2260 Crain Highway in Bowie will have to pay all customers who were overcharged between January 1, 2019, and May 10, 2022; any "add-on products" bought from DARCARS after January 1, 2019, are also included in the suit. 

As of Friday, Renee Boyd Rogers, like many other affected consumers, has been eagerly waiting to hear back from the lawyers involved in the case against the Honda dealer, hopeful for a resolution and a return of their hard-earned money. 

DARCARS Honda of Bowie Issues a Statement

Despite the evidence, DARCARS Honda of Bowie has denied any wrongdoing. They claim that the settlement was not an admission of guilt, maintaining that their practices are consistent with the law and industry standards. 

"While Honda of Bowie reached an agreement with the attorney general's office, we were fully prepared to prove in court that our practices are consistent with the law and industry standards," a dealership spokesperson said. "Today's resolution is simply a business decision that allows the dealership to avoid the expense and distraction of litigation."

What Should New Car Customers Do If They Suspect They Are Being Overcharged? 

Stay vigilant. CarEdge advises that if you suspect a new car dealer is scamming you, there are steps you can take to protect yourself and your finances.

If you suspect overcharging at a car dealership, first document everything, then attempt to resolve it with the dealership, and if that fails, consider contacting consumer protection agencies or pursuing legal options. 

Here's a more detailed breakdown of what to do:

1. Document everything: 

• Keep copies of all contracts, agreements, and emails. This includes the final sales contract, financing agreements, and correspondence with the dealership. 
• Note any verbal agreements or promises: If you had specific agreements with the salesperson or manager, document them as well. 
• Gather evidence of overcharging: This could include comparing the price you were quoted with other dealerships, researching the vehicle's MSRP (Manufacturer's Suggested Retail Price), or comparing the financing terms offered with other lenders. 

2. Attempt to Resolve with the dealership:

• Contact the sales manager or general manager: Explain your concerns and provide documentation supporting your claim. 
• Be prepared to negotiate: Be firm but polite and try to find a mutually agreeable solution. 
• Consider walking away: If the dealership is unwilling to address the issue or make a fair offer, don't hesitate to walk away and find another dealership. 

3. Contact Consumer Protection Agencies:

• Reach out to the Better Business Bureau (BBB): They can provide information and guidance on how to file a complaint. 
• Contact your state's Consumer Protection Office or Attorney General's Office: They can investigate potential violations of consumer protection laws. 
• File a report with the Federal Trade Commission (FTC): You can report fraud or deceptive practices online at ReportFraud.ftc.gov. 

4. Consider Legal Options:

• Consult with an attorney: If you believe you were a victim of fraud or misrepresentation, an attorney can advise you on your legal options.
• File a small claims lawsuit: If you have documented evidence of overcharging and the dealership is unwilling to address the situation, consider pursuing legal action in small claims court. 

Final Thoughts and Questions for Honda Buyers

It's not just this Honda dealer who is dishonest and overcharges for a new car with extra fees. Some dealers are also adding additional costs for parts. Check out my report on Emily, who called the Toyota dealer; she was quoted $1,000 to get a replacement key fob for her Toyota Corolla. 

She had her dad call the dealer, and the price was now $250. Find out what she did when she went with her dad to confront the parts manager. Read Emily's unbelievable story here.

How About You?

Has a dealer overcharged you for a car or parts? If so, click the red Add New Comment link below and let us know.

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl