> ## Content Index > Fetch the complete content index at: https://www.smdp.com/llms.txt > Use this file to discover other available public pages before exploring further. # Beware when buying, leasing new vehicles - URL: https://www.smdp.com/beware-when-buying-leasing-new-vehicles/ - Published: 2003-01-28T16:00:00.000Z - Updated: 2026-10-23T01:24:28.000Z - Author: Andrew Fixmer - Tags: local, Santa Monica, #archive-import *Residents can learn from Honda of Santa Monica class action suit* Consumers can learn from the ongoing investigation into suspected wrong doing by Honda of Santa Monica, officials say. The dealership is being investigated by the Los Angeles County District Attorney’s office and a class action lawsuit has been filed against it for allegedly scamming car buyers out of hundreds of dollars a piece by allegedly tacking on fake state taxes and allegedly misleading customers into buying extended warranties. To avoid similar dealership scams, consumer advocates recommend potential car buyers do their homework before going to a dealership. “Car buying, whether for new or used vehicles, is a ripe opportunity for consumer rights abuses,” said Santa Monica Deputy Attorney Adam Radinsky. “And it’s an area where the consumer has to be very careful.” It’s best to know what car you want to buy, what the dealership pays for its vehicles and to have a good idea of your credit history — all before you ever step foot into a dealership. “These days you can go on line and find all of that information very easily,” said Radinsky, who specializes in consumer protection law. “It’s pretty much all public information now.” Brett Fung, an Encino resident, said he was given one deal by a Honda of Santa Monica salesperson on the showroom floor and an entirely different deal by Ali Hussain, the former head of the dealership’s finance department. He said he was told by Hussain that if he wanted to buy a new Honda Civic hybrid, he would have to put down another $1,000, pay $50 more each month and extend the life of the loan for another year. Fung also had to agree to a $1,600 extended service contract, which he didn’t want, in order to get favorable financing, he said. Under state law, changing the conditions of an automobile sale after the initial deal is agreed upon is illegal. If financing cannot be arranged, the deal is off and the down payment must be returned, according to the Los Angeles County Department of Consumer Affairs. The tactic is called the “Turn Over House,” according to Radinsky. And it’s a common practice among dealerships where multiple sales people are used to deal with the same customer. First, the greeter helps the customer select a vehicle, and then turns the negotiating over to another sales person whose job is to negotiate the price and close the deal. The customer is then passed on to another salesperson who arranges financing, and who changes the terms of the deal to better suit the dealership. After sitting at the dealership for hours, Radinsky said most consumers shrug off having to pay a few hundred dollars more. “This arrangement is completely illegal because the original arrangements made by the greeter were not honored,” Radinsky said. “And this arrangement is designed to confuse and psychologically wear down the consumer.” And if the dealer lets a car buyer take the vehicle home before financing is finalized, the dealer cannot charge for miles driven if the deal goes bad. Another practice that many consumers complain about are dealerships that pressure car buyers into leasing their vehicles. Dealerships make more money when customers lease vehicles because the monthly payments are for use of the vehicle instead of owning it. “It’s typically a worse arrangement for a consumer,” Radinsky said. “And it’s an area where many abuses occur.” Holly Ciampi of Pacific Palisades said she experienced poor treatment by the Santa Monica dealership over a 2001 Honda Passport she leased in July 2001\. The saleswoman worked it out so that with a certain down payment Ciampi could have the vehicle for $300 a month — the highest she said she was willing to pay, she claimed. The finance department allegedly increased the down payment and jacked up the monthly payments $50 because she was told her vehicle required LoJack, a silent alarm that gives law enforcement officers the location of a stolen car. Ciampi said she was told by finance department employee Hamid Khaki that without the system, she would have to pay $50 a month more to her car insurance provider. Two days later she found no insurers would give a LoJack discount, and the dealership allegedly refused to take the device off her lease. They told her it couldn’t be done because of the interest rate on her loan, she said. If the dealership makes false or misleading statements to make a sale, the contract can be made void, according to consumer advocates. “The most common problem with car sales are false and misleading statements by the dealer made to confuse the consumer,” Radinsky said. “Consumers need to know it’s against the law for a dealer to make a false or misleading statement just to make a sale.” Tacking on extra features and extended warranties are very profitable for dealerships, and consumers are advised to look closely at what they are agreeing to, Radinsky said. Many times the extended warranties being offered by the dealerships are limited to the electrical system or a vehicle’s drive train, and they are separate from the warranties that come from the manufacturer. If potential car buyers aren’t comfortable with the negotiating process at dealerships, consumer advocates recommend bringing along some one who is experienced at negotiating. Or, they recommend using a car buying service that cuts the dealership out completely. “Often you can get the best price through a dealership,” Radinsky said, “but it’s going to involve some sweating it out with these sales people.” > “Often you can get the best price through a dealership, but it’s going to involve some sweating it out with these sales people.” — — ADAM RADINSKY Deputy City Attorney Consumers with complaints against Santa Monica car dealerships may contact the City Attorney’s office at (310) 458- 8336\. If the complaint is against an outside dealership, consumers may call the Los Angeles County Department of Consumer Affairs at (213) 974-1452. *Originally published in the Santa Monica Daily Press print edition on January 28, 2003.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/012803.pdf?ref=smdp.com)