Honda Dealer Required To Reimburse Customers They Overbilled | Carscoops

      Customers may receive millions in refunds due to a settlement with the Maryland Attorney General.

      March 7, 2025, at 19:20

      by Michael Gauthier

      A Honda dealership in Maryland has agreed to refund customers who were overcharged.

      Customers unknowingly bought products and paid hidden markups.

      The dealer also advertised prices that were lower than they should have been.

      Maryland Attorney General Anthony Brown has announced a settlement with Darcars Honda, which will lead to customer refunds amounting to several million dollars. Although the exact refund total is unclear, it seems the dealership practiced various unfair business tactics.

      Alleged Deceptive Practices and Hidden Fees

      According to the government, the dealership engaged in “unfair and deceptive trade practices” that negatively impacted consumers. They allegedly charged a 2% “sales commission” fee that was not actually a commission and was illegal.

      In addition, the dealership reportedly advertised vehicles at prices lower than their actual selling prices by excluding markups and added equipment. Furthermore, Darcars Honda was accused of incorporating “unwanted equipment and products” in sales transactions.

      The Attorney General’s Office noted that the dealership failed to adhere to laws regarding the disclosure of processing fees and did not include a necessary “price statement” on each new vehicle for sale. Additionally, sales documents lacked an itemized list with prices of what consumers were purchasing.

      The Settlement and What’s Next for Darcars Honda

      While the settlement details are not specific, Brown’s office indicated that customers were essentially taken advantage of through “undisclosed markups and add-on products that consumers unknowingly purchased.” This seems to be supported by Google reviews, with one stating, “We were charged a commission fee of $600 that I didn’t notice on the final paperwork until we got home. It was not included in the price we agreed to and, when I asked to keep the form they use to present the costs on the sales floor, they told me it was policy that I couldn't.”

      The consent order prohibits Darcars Honda from continuing the described practices and mandates refunds to affected customers. The dealership has also consented to pay $3 million to the Attorney General’s Office.

      In a statement, Brown remarked, “Buying a car is one of the most expensive purchases that someone makes in their life. Marylanders shouldn’t pay more because of a dealer’s unauthorized sales practices.” He further added, “This settlement reflects our Office’s commitment to safeguarding consumers from unfair business practices that breach the law.”

      Update: Honda of Bowie Responds

      Following our report, a representative from DARCARS Automotive Group’s Honda of Bowie responded regarding the settlement. Here’s their statement:

      “While Honda of Bowie reached an agreement with the Attorney General’s office, we were fully prepared to demonstrate in court that our practices comply with the law and industry standards. Today’s resolution is merely a business decision to avoid the costs and distractions of litigation. We remain dedicated to providing our customers with exceptional value and service in their vehicle purchases, as has always been our mission. Any Honda of Bowie customer with questions about this agreement can reach us at 1-866-841-9300.”