The LaFontaine auto dealership suspended this week for allegedly selling used loaner vehicles as new cars is once again open for sales.
LaFontaine Chevrolet Buick GMC of St. Clair and the Michigan Department of State reached an agreement Wednesday that allows vehicle sales to resume, according to LaFontaine and state officials. The state had suspended the China Township dealership’s business license Tuesday.
The state fined LaFontaine $25,000 for selling loaner vehicles with as many as 6,000 miles of use as new vehicles, Department of State spokesperson Cheri Hardmon said in an email. LaFontaine also will be under increased state oversight through December 2026 and must conduct staff training.
LaFontaine has described the violation as a “clerical issue” and said no fraud was committed.”
“This issue was purely administrative in nature — stemming from confusion between automaker program requirements, dealer processes, and the State’s outdated regulatory statutes,” the dealership group said in a statement from spokesperson Max Muncey. “Frankly, the speed at which this matter was resolved reinforces our belief that the initial action was more of a headline-driven move by the State than a substantive compliance concern.’
This is the LaFontaine dealer group’s second penalty under Michigan’s used vehicle law, which requires loaner vehicles that have been titled and registered by dealerships to be sold as used.
Regulators identified LaFontaine’s latest alleged violations while checking its compliance under a 2024 agreement with the state for the same issue at its Livonia dealership.
LaFontaine Hyundai of Livonia shut down for one day in December 2024 after the state suspended its license for allegedly misrepresenting vehicles as new. The dealership agreed to pay a $25,000 penalty and complete a 24-month probation period in lieu of an administrative hearing.
LaFontaine Hyundai of Livonia was required to participate in dealer training for managers and employees and was subject to periodic unannounced inspections by MDOS regulatory staff as part of the 2024 agreement.

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