Two DARCARS dealerships in Westchester County will refund more than $1.17 million to identified customers after a New York Attorney General investigation found they charged misleading fees on vehicle purchases and leases.
The settlement, announced September 16, 2026, also creates a claims process for additional customers of DARCARS Lexus of Mt. Kisco and DARCARS BMW of Mt. Kisco. Valid claims could add millions more in consumer refunds.
DARCARS must deposit at least $3 million into a dedicated restitution account within 45 days of the settlement’s effective date. If the account is not enough to pay required claims, the dealerships must add more money within 10 days after receiving notice that additional funds are needed.
Who Will Get Automatic Refunds?
DARCARS Lexus customers who paid the dealership’s 2% “sales commission” between October 23, 2021 and May 30, 2022 will receive full refunds of that fee. The settlement allocates $892,671.26 to this group.
Another $164,998.72 will go to DARCARS Lexus and BMW customers who told investigators they did not understand the sales commission, believed it was a different charge, did not consent to it or were not told it was optional.
A separate $116,849 will go to consumers who said they were charged for DARCARS Assurance without informed consent, were not told it was optional or were led to believe it was required.
The claims administrator must mail these automatic refund checks within 90 days of the settlement’s effective date. Consumers in these groups do not need to submit a claim form or additional documentation.
More Customers Will Receive Claim Forms
A separate claims group covers consumers who paid the sales commission at either dealership between May 31, 2022 and March 31, 2025 and have not already received a full refund.
The claims administrator must mail notices and claim forms to identified consumers within 120 days of the settlement’s effective date.
A consumer can seek a full refund of the sales commission if the fee was charged without adequate disclosure or express consent, or if the consumer believed the fee was mandatory, believed it would be paid directly to the salesperson, or did not understand its nature or purpose.
Recipients will have 120 days from the postmark date on the notice packet to submit the claim. Consumers later identified as eligible for the early Lexus automatic-refund group or the claims-based sales-commission group can still receive restitution even if they were initially omitted from the consumer list.
No Receipts or Purchase Documents Are Required
Consumers in the claims group do not have to submit a purchase agreement, lease, financing document, invoice or receipt. They need a timely, signed claim form that is substantially complete, and DARCARS’ business records will be used to determine the fee amount and whether it was previously refunded.
The administrator must mail payment within 60 days of receiving a valid claim, in the amount of the unreimbursed sales commission shown by DARCARS’ records.
Under the settlement, accepting a sales-commission refund releases claims against the respondents concerning that fee. Consumers who accept a DARCARS Assurance refund similarly release claims concerning DARCARS Assurance.
What Was the 2% Sales Commission?
The Attorney General’s investigation found that DARCARS added a charge equal to 2% of a vehicle’s cash price on new and used purchases and leases at the two dealerships.
The fee appeared on transaction documents as a “sales commission.” According to the settlement, it was optional and was not required to buy, lease or finance a vehicle.
The Attorney General found that the dealerships did not clearly explain that consumers could decline the fee. Investigators also found that the money was not paid directly to the salesperson involved in the transaction.
DARCARS Lexus charged the fee in approximately 97% of its retail transactions between October 2021 and March 2025, collecting about $5.8 million. DARCARS BMW charged it in approximately 96.8% of transactions from August 29, 2022 through March 31, 2025, collecting about $2.9 million.
Together, the dealerships collected approximately $8.7 million in sales commission fees during those periods.
DARCARS Assurance Cost as Much as $2,495
The investigation also examined an aftermarket package called DARCARS Assurance.
The package bundled nine products and services, including collision and stolen-vehicle credits, diminished-value protection, windshield protection, nitrogen-filled tires and other items. DARCARS charged as much as $2,495 for the package, although some customers paid less or were not charged for it.
According to the Attorney General, the package was included in at least 70% of vehicle sales or leases and was not consistently presented as optional.
One feature advertised a collision credit of up to $2,500, but the benefit was available only if the customer bought or leased another vehicle from the same DARCARS dealership within 60 days of receiving an insurance settlement.
DARCARS Must Change Its Sales Practices
The settlement permanently bars DARCARS from charging or collecting the sales commission, including substantially similar commission fees at its New York dealerships.
The dealerships must clearly disclose future fees and optional products and obtain informed consent before adding them to a transaction. DARCARS is also permanently barred from advertising, marketing, offering or selling DARCARS Assurance, or a substantially similar successor product, bundle or package, at its New York dealerships.
Sales, finance, marketing and advertising employees must receive annual training on consumer-protection requirements.
DARCARS will also pay $700,000 in penalties, fees and costs to New York State. That payment is separate from the money reserved for consumer refunds.
The respondents neither admitted nor denied the Attorney General’s findings.
About This Page
RecallRefunds.com is a consumer information site. We are not DARCARS, the New York Attorney General, the claims administrator, a court or a law firm. This page summarizes a government consumer-protection settlement and is general information, not legal advice.