One vehicle sold as new by LaFontaine Chevrolet Buick GMC of St. Clair reportedly had about 6,000 miles on the odometer
Dealers often get a bad reputation for all sorts of shady shenanigans. In the case of one Michigan dealer, it’s not just facing some public backlash. The Michigan Department of State (MDOS) has just suspended its license for what it calls “imminent harm to the public.” The dealer says it’s all just a case of outdated laws. Nothing to see here…
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According to the MDOS, LaFontaine Chevrolet Buick GMC of St. Clair sold loaner cars as brand-new units. Regulators claim they found the violations during an inspection earlier this year in September.
The officials were there because LaFontaine was still serving an 18-month period of probation. Nearly a year before, it had paid $3,000 in fines for other violations.
What Triggered the Visit?
In this case, the dealer reportedly registered new vehicles in its own name as service loaners, later reselling those same cars as “new,” despite some showing thousands of miles on their odometers. One example allegedly carried more than 6,000 miles yet appeared in listings as factory-fresh.
The department already warned dealers across the state to stop this practice. That was back in October of 2024. Under state law, loaners must be sold as used. Evidently, LaFontaine didn’t get the memo. After finding more than two dozen examples of this sort of conduct, MDOS immediately suspended the dealer’s license.
In a statement to CBS News, LaFontaine Automotive Group pushed back, calling the situation a “clerical error” and citing a “long-standing disconnect” between automaker definitions and state titling requirements.
The group argues that under GM’s factory programs, loaner and rental units still qualify as new vehicles eligible for full warranties and incentives, something Michigan’s “outdated titling laws” fail to reflect. The dealer can’t conduct business while the suspension is in place, though MDOS doesn’t say how long that is.
More: Michigan Suspends Hyundai Dealership’s License “For Imminent Harm To Public” But Reinstates It
It’s not the first time the LaFontaine Auto Group has had an uncomfortable exchange with the state, either. Back in December 2024, the MDOS temporarily pulled the license of LaFontaine Hyundai in Livonia after investigators said they discovered irregularities, including missing titles, unclear odometer readings, and used cars being represented as new.
The company attributed the issue at the time to “a few rogue employees” and pledged to strengthen training and oversight across its dealerships.
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