You may have seen the headline: Michigna says GM dealer keeps selling its used loaners as brand-new cars. The state went so far as to suspend the dealership’s license, and the dealership called foul. Now the dealership is open again. But buyers are left wondering what legally counts as a “new” car.
I previously wrote about the highest number of miles a “new” car can have on the odometer. I learned that most states don’t have a strict rule for what dealerships can pass off as “new.” But in most places, 6,000 miles is too much. So I wasn’t at all surprised when the state of Michigan shut down a GM dealership for selling vehicles—with up to 6,000 miles—as brand-new cars.
Two facts might surprise you. First, even a “new” car will have at least a few miles of transport and test drives on the odometer. Second, there is no strict nationwide limit for how many miles a “new” car can have. It is simply a car no one has ever bought and registered.
So can a dealership throw some of its temporary plates on an unsold car, offer it to customers with a car in the shop as a loaner, then sell it as new? Absolutely. Could a dealership employee or owner drive a car for a month, then sell it as new? Yup.
The definition of a “new” car often comes down to what customers will pay new car money for. When I spoke to retired salesperson Joe Santos, he said the state of California told dealers that 1,500 miles is too much for a new car’s odometer reading. But certain customers might request the lowest odometer reading possible, just like they might request a specific paint color or interior package. Santos said he once found a car with just three miles on the clock. He doesn’t recall ever selling a new car with more than 25 miles on the odometer.
The state of Michigan briefly suspended LaFontaine Chevrolet/Buick/GMC of St. Clair’s license. The dealership—which is actually in China Township, not St. Clair—was caught selling vehicles with up to 6,000 miles as “new” cars. These weren’t vehicles that had been sold and titled before. But obviously, someone had thrown temporary dealership plates on them and driven them extensively.
In September 2024, the Michigan Department of State discovered problematic high-mileage “new” cars at the dealership and told it to stop. The state issued a $3,000 penalty and an 18-month probation. MDOS also required multiple employees to attend trainings on the Michigan Vehicle Code.
Did that solve the problem? Nope. One year later, MDOS conducted a follow-up inspection and found the dealership had sold vehicles with up to 6,000 miles as new. It suspended the dealership’s license, though the license has since been reinstated.
LaFontaine complained, “Michigan’s outdated titling laws still require such vehicles to be classified as used, even though they meet all qualifications for new vehicle incentives and warranties.” It called this “a regulatory inconsistency unique to Michigan” and labeled the suspension “a headline-driven move by the State.”
But LaFontaine is wrong. Other states, such as California, wouldn’t allow a dealership to title 6,000-mile cars as new. Michigan was even kind enough to give the dealership a warning and additional training. What did the dealership expect to happen when it ignored the guidelines a second time?
The dealership insists this wasn’t a “scheme” and that its “administrative” issue had “no guest impact whatsoever.” It suggested buyers benefited from the new car status of these vehicles. Yes, the buyers enjoyed factory warranty coverage and new car tax status. But I’ll also bet you donuts to dollars that the sales team at LaFontaine made them pay new car prices for something that needed its first oil change immediately.
If I bought a Chevy from LaFontaine, drove it 6,000 miles, and then said I’d changed my mind, they’d tell me my used vehicle is now worth half of MSRP. There’s no reason they should be exempt from depreciation just because their car’s wearing dealership plates. I hope Michigan continues holding LaFontaine accountable.
Henry Cesari is a MotorBiscuit Staff Writer who brings his deep interest in vintage cars, trucks, and motorcycles to the site. Henry covers Ford models daily, including the F-150. Having restored his first classic car at just 16 years old, Henry has wrenched on everything from overland campers to Japanese motorcycles and even pre-war Bugattis. He’s an avid attendee at local car shows and genuinely enjoys connecting with fellow auto enthusiasts. Henry earned a Bachelor’s in Anthropology and English from the University of Vermont.

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