The state alleges that Honest Abe would tack thousands of dollars on for customers who couldn’t buy cars outright
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- Indiana business running four used-car dealerships agreed to fork over almost half a million bucks to former customers.
- According to the State Attorney General, the dealer used deceptive practices to charge customers thousands more.
- The dealer’s parent company, Sycamore Co. LLC, must make four more payments of $85,039.40 each.
Indiana regulators sent Honest Abe Auto Sales packing last week, accusing the used-car dealership of an array of deceptive practices. The state’s crackdown resulted in a hefty $470,646 fine against the dealership’s parent company, Sycamore Co. LLC. The irony of naming a used car dealership after Honest Abe Lincoln was certainly not lost on investigators.
Honest Abe Auto Sales operates primarily as a buy-here, pay-here business in four different locations in Indianapolis. According to Indiana Attorney General Todd Rokita, they allegedly advertised a cash price, but when customers showed up, things were different.
The cash price was still available, but those who wanted to finance a car—as is the case for the majority of buy-here, pay-here customers—had to pay a much higher total.
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“If a consumer wished to finance the vehicle, as almost all of Sycamore Cos. LLC’s consumers do, Sycamore Cos. LLC would significantly raise the price of the vehicle above the advertised cash price, often by thousands of dollars,” the complaint says. In addition, it would inform customers that the price was zero interest despite being thousands of dollars more.
“Here we have a business that allegedly hid extra finance fees, staggering service charges, document costs, and outright price markups. Regardless of their credit scores, consumers should never encounter bait-and-switch tactics in which prices change the second customers arrive in person. The fact they call themselves ‘Honest Abe’ makes the facts of this case especially rich,” Rokita said Wednesday.
“We won’t tolerate businesses breaking the law and duping Hoosiers into paying higher prices than advertised,” he added.
Interestingly, Sycamore has already paid $30,522.40 of the judgment. Upon finalizing the agreement, it paid an additional $54,517. Four more payments of $85,039.40 each are due over the next few months. If it fails to make even one payment, the state can demand the entire remaining amount immediately.
Honest Abe’s has used car dealerships at 4401 N. Keystone Ave., 5520 W. Washington St., 3201 W. 16th St., and 5433 Madison Ave. in Indiana. Sycamore Cos. LLC was founded in 2009 by Ibrahim Saad Alfaran, the company’s president.