If you think dodgy dealership stories only happen in the movies, think again. Michigan is currently starring in its own automotive soap opera, with LaFontaine Chevrolet Buick GMC of St. Clair taking center stage—and it’s not exactly winning an Oscar for honesty.
The Michigan Department of State (MDOS) recently pulled the dealership’s license, citing what it calls “imminent harm to the public.” That’s bureaucrat-speak for: your local dealer might be bending the truth about just how fresh that shiny new ride really is. LaFontaine, naturally, says it’s all just a case of outdated laws and clerical misunderstandings.
The Road to Trouble
Here’s where it gets sticky. Regulators allege that LaFontaine has been selling service loaners as brand-new vehicles. Think about that for a second: cars that have already been flogged around town with thousands of miles on the clock, handed out to customers while their owners wait for a warranty repair, and then listed online as factory-fresh. One vehicle reportedly had more than 6,000 miles under its belt—yet buyers were led to believe it rolled straight off the assembly line.
MDOS isn’t messing around. The department warned dealers across the state back in October 2024 to knock off this practice. Apparently, LaFontaine missed the memo. Inspectors found more than two dozen vehicles in the same situation during a routine check in September. The result? An immediate license suspension, grounding the dealership until further notice.
“Just a Clerical Error,” Says the Dealer
LaFontaine isn’t taking it lying down. The automotive group insists this is merely a paperwork snafu, blaming a “long-standing disconnect” between General Motors’ internal definitions and Michigan’s titling laws. According to the company, GM considers loaner and rental vehicles eligible for full warranties and incentives—technically “new” under automaker programs. Michigan law, however, is less flexible: loaners must be sold as used. It’s a classic case of corporate logic running headlong into bureaucratic reality.
Déjà Vu in Livonia
This isn’t LaFontaine’s first dance with the MDOS. Just last December, investigators temporarily pulled the license of LaFontaine Hyundai in Livonia over irregularities including missing titles, unclear odometer readings, and—yes—used cars masquerading as new. The company chalked it up to “a few rogue employees” and promised tighter oversight. Spoiler alert: apparently, the memo didn’t make it to St. Clair.
For car buyers, the lesson is simple: if a deal seems too good to be true, it probably is. For dealerships, it’s a reminder that clever accounting can only take you so far before the regulators show up with their clipboards. And for the rest of us? Well, it’s another reminder that in the automotive world, drama is as reliable as a turbocharged V8—fast, loud, and impossible to ignore.
Source: CBS News; Photo: LaFontaine Chevrolet Buick GMC