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The dealership claims the situation is all a misunderstanding, but history says otherwise
A NEW car may not be exactly what you’re getting from premium dealerships as proven by the situation one group is finding itself in.
Drivers in the US state are now furious after finding out that the dealer was actually selling them used cars all along thanks to the group’s ongoing battle with state officials over exactly what they were doing.
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Michigan dealership LaFontaine Chevrolet Buick GMC of St. Clair County has allegedly violated state-imposed measures restricting the sales of loaner cars, vehicles given to customers while their car is being repaired, as new automobiles.
By doing exactly that, the General Motors-centric dealership provided false information on Michigan Department of State title and registration applications.
These actions have also led the dealership to be accused of violating an existing probation from the Department of State for violating this rule this past September as discovered in a follow-up inspection after the measures’ enactment.
The inspection uncovered over two dozen instances of used vehicles being sold as new, with their mileages being as high as 6,000.
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This directly resulted in the dealership having its license suspended, meaning it is resultantly prohibited from selling cars while it tries to simultaneously argue its case against the state and work with it to get its license back.
“Unfortunately, a long-standing disconnect between automaker program definitions and state titling requirements has created widespread confusion among dealers across Michigan,” said LaFontaine in its defense.
The LaFontaine Hyundai dealership in Livonia also had its license suspended in December 2024 over similar allegations of sales practices.
The dealer is arguing that “nearly every other state” allows for the sale of vehicles used for rental or service loaner programs, calling Michigan’s titling laws restricting this kind of sale “outdated.”
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Drivers both in the state and online aren’t sold on the matter, and are levying harsh critiques against the dealership group and its shady practices.
“Good, I hate crooks especially car salesmen,” said one X user.
“Bought multiple vehicles from the location under old ownership. LaFontaine lost me as a customer, and my wife as theyve [sic] ruined MacDonald Ford as well,” shared a second.
“I don’t understand how fraud doesn’t come in to [sic] play here,” wondered a third.
LaFontaine is also claiming that, rather than selling used cars as new, it instead had a clerical error on a form which led to the confusion that created the current situation.
“This matter arises from an error in the completion of RD-108 documentation – a paperwork issue that has created confusion between automaker program requirements, dealer processes, and the State of Michigan’s regulatory statutes,” it explained.
Each law has different parameters on what defines a lemon, but generally, a car is lemon when it's in the shop for longer than it's on the road.
Progressive Auto Insurance describes a lemon as a car with “a significant defect or malfunction that makes it unsafe to drive,” though exact parameters vary by state. All 50 states have lemon laws covering new vehicles, but only seven have lemon laws to protect used car buyers.
Federally, however, consumers are protected under U.S. Code Chapter 50 covering consumer product warranties. In layman’s terms, the law dictates that consumers be compensated by the manufacturer when “multiple attempts to repair a vehicle under warranty fail.”
What to do if you think you bought a lemon:
Source: Progressive Auto Insurance
“Upon notification of the temporary suspension, LaFontaine immediately began working closely with state officials to review internal processes, correct documentation, and ensure full compliance moving forward,” added the dealership.
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