Report shows widespread abuse in New Jersey’s used car industry

A state report says New Jersey’s used car industry has been allowed to defraud consumers for years and pressured Motor Vehicle Commission officials to manipulate and weaken regulations.

The State Commission of Investigation report released Wednesday says eleven multi-dealer locations owe about $10 million in unpaid taxes.

It says police and regulatory agencies also frequently overlooked rampant licensing abuses.

The Motor Vehicle Commission says it has drafted regulatory changes to tighten dealer practices. It says it has issued more than $2.5 million in proposed fines to multi-dealer complexes across the state.

Investigators recommended implementing rules on used car purchases and creating a professional regulatory board that would handle licensing and oversee dealers. It also recommended requiring lobbyists to report on the substantive matters they discuss with government officials.

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