N.Y. attorney general cites auto dealers over 'lemon law'

Eric Durr The Business Review

Keeler Volvo, Latham Motors, and Armory Nissan are among 11 Albany, N.Y.-area auto dealers cited by the attorney generals office for allegedly failing to comply with part of state's "Lemon Law."

The dealers failed to inform customers that the cars they bought were once returned to the dealer as "lemons," said Attorney General Eliot Spitzer.

"Consumers have a right to know whether a car has a a history of problems," Spitzer said. "The state's Lemon Law requires such disclosure, and my office is committed to vigorous enforcement of that law."

A review of Lemon Law cases over the past three years revealed that 56 dealerships across the state failed to comply with that piece of the law, Spitzer said.

The law requires auto dealers to notify the state Department of Motor Vehicles following the return of a vehicle under the law so that the title can be "branded" with a warning to prospective buyers. The warning indicates that the vehicle did not conform with a manufacturer's warranty.

Tom Selkis, owner of Latham Motors, acknowledged that his dealership had violated the law, but that it was inadvertent.

"This was one case out of five or six hundred used cars a year we sell. It basically fell between the cracks," Selkis said.

Other dealerships contacted did not have a spokesperson immediately available for comment.

The customer who purchased the vehicle never complained about it's performance, Selkis said. The attorney general's office discovered the error, and contacted the buyer. At that point the buyer decided he didn't want the car and Latham Motors repurchased it for $18,500, Selkis said.

"That's it. Case closed," he said.

The auto dealers identified as violators were assessed a total of $50,000 in civil penalties and costs. In addition, 37 current owners of returned "lemons" will receive approximately $200,000 in restitution, Spitzer said.

Area dealers on the list include:

Action Chevrolet in Troy, N.Y.;

Armory Nissan in Albany, $2,074;

Cooley Motors in North Greenbush, $1,873.75;

Keeler Volvo in Colonie, $18,796.32;

Latham Motors in Latham, $18,500;

Lia Nissan Kia in Schenectady, $4,749.75;

Liberty Auto Sales in Schenectady, $875;

Ringer Enterprises in Hudson Falls, $1,448.75;

Nemith Motors in Latham $2,248.50;

T.D. Auto Specialties in Albany, $1,737.50;

VJB Auto Sales in Schenectady.