Michigan dealership no longer suspended after alleged used car sale scheme
Michigan dealership no longer suspended after alleged used car sale scheme
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Michigan dealership no longer suspended after alleged used car sale scheme

🕒︎ 2025-11-11

Copyright M Live Michigan

Michigan dealership no longer suspended after alleged used car sale scheme

LANSING, MI – The St. Clair County car dealership that had its license suspended for alleged violations of the Michigan Vehicle Code is back in business. LaFontaine Chevrolet Buick GMC of St. Clair, Inc., located at 3050 King Road in China Township, inked an agreement with the state to continue operations under an extended probationary period and $25,000 fine. The Michigan Department of State confirmed the suspension has been lifted. MDOS originally accused the dealership of presenting used vehicles to customers as new vehicles, but the dealership argued the suspension came from a clerical error. “Within a day of receiving the suspension notice, the State of Michigan fully lifted the suspension, and as of the following day, LaFontaine Chevrolet Buick GMC St. Clair was 100% back in business across both sales and service operations,” the dealership wrote in a statement. “This issue was purely administrative in nature — stemming from confusion between automaker program requirements, dealer processes, and the State’s outdated regulatory statutes.” The dealership continued, adding that there was no scheme to sell used vehicles as new. “Our commitment to integrity, transparency, and the trust of our guests remains unwavering, and we continue to operate in full partnership with both our automaker and lender partners,” the statement read. MDOS allegedly discovered the violations during an investigation by regulatory staff. The state alleged the dealership registered new vehicles in their business name to serve as loaner vehicles for customers, only to resell them as new after they were no longer used in the loaner program. The dealership denied all fraudulent activity and urged the state to collaborate with automakers to align state regulations with industry standards. LaFontaine explained in a statement that under manufacturer and lender definitions, vehicles used in rental or service loaner programs fully qualify as new vehicles. However, Michigan law requires those vehicles to be classified as used, despite meeting new vehicle incentive and warranty qualifications, the company wrote.

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