RALEIGH, N.C. --- So that consumers are better informed about new cars costs and pay less in finance charges, Sonic Automotive Inc. has agreed to reforms at its six North Carolina auto dealerships, according to the Associated Press.

Under the agreement, Sonic is to limit what it charges consumers to arrange loans for new cars and clearly disclose the cost of options like extended warranties and service contracts. North Carolina law does not limit how much a dealership can add to the cost of the loans, but under the agreement Sonic has agreed to cap interest rate markups on cars it finances to no more than 2.5 percent of the principal.

Sonic also has paid $975,000 to the state to provide refunds for customers who purchased Sonic's ETCH anti-theft warranty. A state investigation that started in 2003 found that Sonic dealerships failed to adequately disclose to consumers the cost of "back end" options such as ETCH.

Consumers who purchased the warranty from Sonic from Jan. 1, 2001, through Dec. 31, 2003, can claim a refund. Consumers who are eligible will be notified by mail on how to claim it, according to the AP report.