A massive GM dealer in Michigan just got its lights punched out by state regulators, who claim the place was peddling used-up loaner rides as fresh-off-the-lot newbies. The Michigan Department of State yanked LaFontaine Chevrolet Buick GMC’s license faster than you can say “warranty fraud,” slapping them with a suspension over what officials called a clear danger to customers.
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Turns out, this joint was already on thin ice. Officials stumbled onto the mess during a routine check last September, catching the dealer red-handed registering brand-new whips under its own name, racking up miles as loaners, then flipping them back into the “new” column. Some rides had more miles than a beat-up Uber—we’re talking 6,000-plus on the clock while still tagged as unsold inventory.
Here’s the kicker: LaFontaine was already skating through probation for past screw-ups, including a measly $3K fine for previous violations. This time, though, the state wasn’t playing nice. They caught nearly 30 wrongly labeled cars, and boom—license gone.
Michigan’s rules? Crystal clear: loaners are used cars, no ifs, ands, or buts. The state even blasted a reminder in late 2024 telling dealers not to pull this exact stunt. But LaFontaine’s spinning this as a paperwork snafu, blaming “confusing” manufacturer loopholes that label loaners as new under warranty programs.
And get this—it’s not their first rodeo. Just months ago, their Hyundai sister store in Livonia got popped for sketchy odometer readings, missing titles, and passing off clunkers as something they weren’t. They promised to clean up their act then. Guess that didn’t stick.
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