A Tempe car dealership has settled a complaint for over $2 million, following allegations of deceptive sales practices that resulted in customers paying more for their cars. The Arizona Attorney General (AG) hopes that this action will send a message to other dealerships, while the owners of Coulter Buick GMC Tempe are defending their business against the accusations.
The complaint, filed by the Federal Trade Commission and the AG’s office, alleges that the dealership engaged in a „bait and switch“ tactic. This involved advertising a car’s online price as lower, only to add over $4,000 in add-on fees and interest rates. Additionally, the complaint accuses the dealership of discriminating against Latino customers.
Despite settling the complaint for a substantial amount, the dealership maintains that none of the allegations are true. Operations director Lindsey Coulter disputes the claims, stating that 40% of their employees are Latino and that the allegations are hurtful to the company. She also mentions that the findings are based on what they consider to be „unreliable statistics“ that do not align with their business numbers.
The AG, Kris Mayes, believes that these deceptive practices have been ongoing for at least five years. She highlights that customers were often surprised by additional charges for items such as VIN etching, window tinting, and nitrogen-filled tires. A survey conducted by the AG’s office found that 92% of consumers were charged for at least one add-on without their authorization or knowledge.
Furthermore, Mayes points out that Latino customers were charged nearly $1,200 more in add-on fees and interest compared to their white counterparts. Despite the dealership’s denial of these claims, they agreed to settle the complaint. Coulter explains that they felt it was financially responsible to do so and move on from the issue.
Brian Newman, owner of Newman Auto Network, who has no connection to the claim, acknowledges that these types of allegations are not uncommon in the industry. He suggests that changes are necessary industry-wide to rebuild customer trust, as many dealerships face similar accusations.
In response to the settlement, the dealership emphasizes its nearly 30-year history in Tempe and its A+ rating from the Better Business Bureau. They highlight that repeat customers are central to their business model, with the majority of customers who purchase a new vehicle also having their vehicles serviced at the dealership.
The Arizona AG’s Office encourages those who believe they were impacted by the dealership’s practices to reach out for a refund. The settlement serves as a reminder of the importance of transparency and fair practices in the automotive industry, with the hope of preventing similar incidents in the future.