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ST. CLAIR COUNTY, Mich. (FOX 2) – The state suspended the license of a car dealership in St. Clair County for allegedly claiming used vehicles were new.
According to the Michigan Department of State (MDOS), LaFontaine Chevrolet Buick GMC of St. Clair on King Road in China Township was allegedly assigning vehicles as loaners for customers, and then selling those vehicles as new despite them being used. In doing so, the dealership provided false information on MDOS title and registration applications.
The dealership is also accused of violating existing probation imposed by MDOS.
The backstory:
MDOS staff discovered the new vehicle scheme during a general compliance inspection in September 2024, and violations were issued.
In separate October 2024 emails, MDOS and the Michigan Auto Dealers Association directed all new vehicle dealerships to immediately stop selling used vehicles as new or risk administrative action by the department and a suspension of the dealer's license. The department then provided the dealership with educational materials, and established an Alternative Penalty Agreement for the dealership. That agreement included a $3,000 financial penalty and an 18-month probation period. 
Additionally, several representatives of the dealership attended an MDOS training session that included education on violations of the Michigan Vehicle Code.
When MDOS conducted a follow-up inspection this September, it was discovered that the dealership had allegedly continued to sell used vehicles as new, even after the department took action against LaFontaine. One of these vehicles passed off as new had around 6,000 miles on it, according to MDOS.
The dealership is currently prohibited from selling vehicles.
The other side:
The dealership refutes claims that it was selling used cars as new. It said this can be attributed to a clerical error in the completion of RD-108 documentation.
According to the dealership, a paperwork issue that has created confusion between automaker program requirements, dealer processes, and state regulatory laws.
LaFontaine statement:
"LaFontaine Automotive Group confirms that the State of Michigan has issued a temporary suspension of the dealer license for LaFontaine Chevrolet Buick GMC St. Clair. This matter arises from a clerical 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.
"LaFontaine Automotive Group has always operated in full compliance with automaker programs and remains dedicated to maintaining complete alignment with state regulations. Unfortunately, a long-standing disconnect between automaker program definitions and state titling requirements has created widespread confusion among dealers across Michigan.
"Under current manufacturer and lender definitions, vehicles utilized in manufacturer-approved rental or service loaner programs fully qualify as new vehicles. In nearly every other state, modernized statutes reflect this reality and allow these vehicles to be titled and sold as new. However, 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.
"As a result, these vehicles are sold to customers as titled used cars — despite being eligible for new-vehicle benefits — a regulatory inconsistency unique to Michigan. Contrary to recent misleading statements from the Michigan Department of State, no fraudulent activity has occurred. Consumers have continued to benefit from lower-priced vehicles that remain eligible for new-vehicle incentives and warranties under GM’s approved programs.
"LaFontaine Automotive Group respectfully urges the State of Michigan to collaborate with automakers and dealers to modernize and align state regulations with current industry standards. Such alignment would ensure consistent compliance expectations, transparency, and consumer protection across the automotive marketplace.
"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.
"As a family-owned organization, LaFontaine Automotive Group takes great pride in its long-standing reputation for honesty, integrity, and guest satisfaction. We remain deeply committed to maintaining the trust of our valued guests and the communities we serve while working diligently with the State of Michigan toward a swift and fair resolution."
What you can do:
Those with complaints against LaFontaine Chevrolet Buick GMC of St. Clair are asked to contact the MDOS Office of Investigative Services automotive complaint line at 844-372-8356.
The Source: This information is from a Michigan Department of State press release.
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