Car dealership reaches agreement with attorney general over lease termination fees after Local 10 News investigation

PEMBROKE PARK, Florida. — Consumers who had to pay dealer fees when purchasing a leased vehicle should not have done so and may be entitled to their money back, according to a Local 10 News investigation.

Investigative reporter Jeff Weinsier first uncovered this in 2022 when he focused on car dealerships that charged their customers undisclosed fees when purchasing a lease.

The stories caught the attention of the Florida Attorney General’s Office. Johnny Kane was among the victims during the pandemic, when dealers had few cars to sell and demand for takeovers was at record levels.

“I felt like I was being ripped off, and that’s not a good feeling,” Kane said.

Juan Carlos Beltran, one of the victims, said he was hit with one fee after another that was not listed in the original lease agreement. There were dealer preparation fees, registration fees, pre-delivery service fees and processing fees.

The OAG opened a formal investigation into Florida car dealers who allegedly charged fees not listed in the original lease agreement.

Related studies: AG Moody summons car dealers after Local 10 investigates illegal fees

Dealer employees told customers that the cars would have to be inspected, repaired and certified in order to charge a higher purchase price than the redemption price stated in the original lease agreement.

Without admitting guilt, Lexus of Clearwater agreed to pay $73,000 and Gunther Motor Company agreed to pay $600,000 to settle the cases. Both companies must refrain from charging any fees not listed in the original lease agreement during the lease release process.

Gunther’s attorney issued a statement saying, “Gunther Motors is pleased to have worked with our state regulators and its customers to resolve the issues. A solution was found that ensured all necessary parties were considered and the matter is now resolved.”

Insiders say the OAG rarely takes cases against dealers this far. In June, the Florida Automobile Dealers Association sent a letter to dealership bosses: “We hereby inform you that the [OAG] has announced that it intends to take action against car dealers over advertising. For 20 years, the OAG has largely taken a laissez-faire approach to advertising. That is now set to change.”

According to Florida law, the “advertised price must include all fees and costs.”

Customers who have concluded a leasing contract with a Gunther car dealership between November 2018 and today will receive a form from the OAG by post to fill out.

To report an instance of illegal lease termination fees, contact the OAG’s Fraud Hotline at 1-866-966-7226 or visit this page. To file a complaint against a dealer, also contact the Federal Trade Commission, the Better Business Bureau, and the Florida Department of Agriculture and Consumer Services online through the Complaint Assistant portal.

Related letter

Section of the settlement