Lawsuit Accuses Kia Dealer Of Inflating Price, Hiding Fees

Car Pro Analysis: This case was too big for the Suits & Settlements section, and I’ll be honest I am conflicted on this one. As you know, I am on a tear about deceptive dealerships and there is NO doubt this dealership did some shady things. I hope state and federal authorities look at the dealership's practices; it warrants it. But the question here is-did the customer agree to an out-the-door price that included all the fees? If so, that is a different story. On the flip side, if the customer negotiated just the sale price of the vehicle, then all these other fees are applied, that is the definition of deception. The other thing that bothers me is: if in fact the dealership offered them all their money back and to unwind the deal, where are the damages? Is this a sue happy customer? Did an Attorney solicit them to file a lawsuit? I hope all this comes to light during the trial if it goes that far. You can certainly see why I preach the importance of reading everything you sign.

A New York Kia dealership is facing a federal lawsuit after a customer alleged he was talked into buying a used minivan at what the suit calls a “grossly inflated” price loaded with hidden fees that were never properly disclosed. The dealership strongly denies the allegations and says it offered the customer multiple ways to make things right, despite believing it had done nothing wrong.

According to Automotive News, Jean Garcia purchased a used 2023 Kia Carnival from Atlantic Kia in West Islip, New York, in December 2025. Garcia later filed suit in U.S. District Court for the Eastern District of New York, accusing the dealership of deceptive sales practices and violations of the federal Truth in Lending Act, along with several New York consumer protection laws.

The lawsuit alleges Garcia believed he had negotiated one deal, only to discover later that the actual numbers on the contract were dramatically different.

According to the complaint, Garcia agreed to buy the Carnival for $33,325, which was reportedly below the dealership’s advertised price of $34,150. The suit says Garcia also made a down payment of nearly $5,900 and electronically signed the paperwork during the transaction without the documents being fully explained to him or copies immediately provided.

It wasn’t until later, after reviewing the financing paperwork, that Garcia allegedly discovered the vehicle’s cash price had jumped to $41,500, an increase of more than $8,000 from what he believed he had negotiated.

That’s where things escalated.

The lawsuit claims Garcia contacted the dealership to question the discrepancy and was shown an unsigned purchase order reflecting the higher price. Later, after obtaining copies of the sales paperwork directly from the lender, Garcia allegedly found another purchase order bearing what the suit claims was a forged signature.

The lawsuit further alleges the dealership failed to properly disclose thousands of dollars in additional charges, including a $695 acquisition fee, a $2,995 inland freight charge, and a $1,895 reconditioning fee. According to the complaint, those charges were either hidden, improperly disclosed, or absent from key sales documents.

According to Automotive News, Garcia’s attorney, Robert Nahoum of Pearl River, New York, said his client's attempt to solve the matter before filing the lawsuit "were met with persistent and continuing deception and obfuscation."

Atlantic Kia sees the situation very differently.

John Gentile, general counsel for Atlantic Auto Group, which operates the dealership, told Automotive News the dealership “did nothing wrong.”

According to a response Atlantic Kia submitted to the New York Attorney General’s Office, Gentile said Garcia returned to the store just days after the purchase to complain about the pricing issue and the dealership immediately tried to resolve the matter by offering Garcia two options: completely unwind the transaction with a full refund or refund nearly $2,000 from the purchase price while allowing him to keep the vehicle.  

“The consumer declined both options,” the dealership said in its response letter, cited by Automotive News. “These offers demonstrate Atlantic Kia’s good-faith effort to promptly and reasonably address the consumer’s concerns, despite no error or legal obligation to do so.”

Gentile also pointed out that Garcia’s earlier complaint to the New York Attorney General’s Office apparently did not include allegations involving fraud, false advertising, or Truth in Lending Act violations. He said the complaint focused only on New York consumer protection law claims, and according to Gentile, the state agency ultimately took no action after reviewing Atlantic Kia’s response.

The lawsuit now moves into federal court, where Garcia is seeking damages tied to alleged violations of federal lending laws, New York consumer statutes, false advertising, and fraud claims. The lender that financed the vehicle was also named in the lawsuit because it became the assignee of the retail installment contract.

Cases like this are exactly why consumers should slow down and carefully review every line of a sales contract before signing, especially when financing is involved. Consumer complaints involving dealer add-ons, acquisition charges, reconditioning fees, freight charges and payment packing are not uncommon in today’s market.

And here’s something important people often forget: when you electronically sign documents at a dealership, those signatures carry the exact same legal weight as putting ink on paper. If something doesn’t look right, stop the process immediately and ask questions before the deal is finalized.

One thing is certain: if the allegations in this lawsuit are proven true, the dealership could face serious consequences. But if Atlantic Kia’s version holds up in court, the case may ultimately come down to a dispute over paperwork, disclosures, and what exactly was agreed to during the negotiation process.

Either way, this one serves as another reminder that in today’s car market, the most important option on any vehicle may still be reading the fine print.