by Scandal in Michigan: Dealer License Revoked for Selling Service Vehicles as New
The LaFontaine Chevrolet Buick GMC dealership in St. Clair lost its license to sell vehicles due to serious violations. The Michigan Department of State suspended the license, citing a threat to consumers. The main accusations were:
Chronology of Violations
During an inspection in September, regulators discovered that the dealership registered new vehicles under its own name as service vehicles and then resold them as brand new. This occurred despite some of these vehicles having over 6,000 miles on them. Inspectors documented over two dozen such cases.
This inspection took place because the establishment was already on an 18-month probation period following previous violations, for which it paid a $3,000 fine.
Dealer’s Position and Legislative Controversies
Representatives of LaFontaine Automotive Group called the situation a “clerical error” and pointed to a “long-standing inconsistency” between manufacturer requirements and state registration rules.
The group claims that according to General Motors factory programs, service and rental vehicles still qualify as new and are eligible for full warranty and incentives. In the dealer’s opinion, Michigan legislation does not reflect these nuances.
History of the Dealer Network’s Problems
This is not the first time LaFontaine Auto Group has faced claims from the state. In December 2024, the MDOS temporarily revoked the license of LaFontaine Hyundai in Livonia after discovering discrepancies, including missing title documents, unclear odometer readings, and representation of used vehicles as new.
At that time, the company explained the problems as being due to “several dishonest employees” and promised to enhance training and control across all its dealerships.
This situation highlights the complexity of interaction between automobile manufacturer requirements and state regulation. While the dealer emphasizes the technical aspects of vehicle qualification, state consumer protection agencies are focused on the accuracy of information received by buyers. Mileage of several thousand miles significantly changes the actual value of a vehicle, regardless of whether the manufacturer considers it new. Buyers paying full price for a “new” vehicle have the right to expect it truly hasn’t been used extensively, especially when it comes to premium brands like GMC and Buick.
