UNBELIEVABLE — Dealership Loaner Car SCAM

A row of parked black and silver cars in a dealership

A Michigan dealership’s license has been suspended after authorities discovered the business allegedly deceived customers by selling used loaner vehicles as brand new cars, violating state law and breaching a previous probation agreement.

Story Highlights

LaFontaine Chevrolet Buick GMC of St. Clair had its license suspended for allegedly selling used loaner cars as new vehicles
The dealership was already on probation from previous violations and ignored repeated state warnings issued in 2024
Michigan state law requires loaner vehicles to be sold as used, regardless of manufacturer warranty status
This represents the second LaFontaine dealership suspended for similar deceptive practices within a year

Repeated Violations Despite State Warnings

The Michigan Department of State suspended LaFontaine Chevrolet Buick GMC of St. Clair after discovering the dealership continued selling used loaner vehicles as new despite being on probation. MDOS conducted compliance inspections in September 2024 and again in September 2025, finding the dealership registered new vehicles under its business name, used them as loaners, then resold them as new. The dealership had already signed an Alternative Penalty Agreement following previous infractions, which included financial penalties and mandatory staff training.

Michigan dealership license suspended for allegedly selling used cars as new https://t.co/wtilBSacxP

— MLive.com News (@michigannews) November 4, 2025

Pattern of Deceptive Practices Across Dealership Group

This suspension marks the second time within a year that the LaFontaine Automotive Group has faced regulatory action for similar violations. In December 2024, LaFontaine Hyundai in Livonia received a temporary license suspension for misrepresenting used vehicles as new. The pattern suggests systematic disregard for Michigan Vehicle Code requirements across multiple locations within the dealership network. State officials issued statewide warnings to all Michigan dealerships in October 2024, making LaFontaine’s continued violations particularly egregious.

Consumer Protection Laws Violated

Michigan’s Vehicle Code explicitly requires loaner vehicles to be classified and sold as used, protecting consumers from paying premium prices for vehicles with prior use history. The dealership’s alleged scheme undermines fundamental consumer protections by misrepresenting vehicle status for financial gain. This practice violates basic principles of honest commerce that conservatives value, where businesses should compete fairly without deceiving customers. The state’s enforcement action demonstrates necessary protection of individual consumers against corporate overreach and fraudulent practices.

Business Operations Halted Pending Resolution

LaFontaine Chevrolet Buick GMC cannot conduct business until reaching a compliance agreement with MDOS officials. The dealership group disputes the allegations, claiming clerical errors and outdated state laws created the violations rather than intentional deception. However, the suspension follows repeated warnings and a previous probation agreement, suggesting willful noncompliance rather than innocent mistakes. The duration of the suspension remains unspecified, with ongoing negotiations between the dealership and state regulators determining when operations might resume.

This case highlights the importance of regulatory enforcement in protecting consumers from deceptive business practices, ensuring that free market principles operate within a framework of honest dealing and transparency.