A Michigan GM dealership had its license suspended after state regulators alleged the store was registering used loaner vehicles and reselling them as new. The Michigan Department of State suspended LaFontaine Chevrolet Buick GMC’s license, citing what officials described as a risk to consumers.
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What Investigators Found
According to the state, the issue was uncovered during a routine inspection last September. Investigators allege the dealership registered new vehicles under its own name, used them as loaner cars while accumulating mileage, and then listed them for sale again as new inventory. Some of the vehicles reportedly had more than 6,000 miles on the odometer while still being marketed as unsold new cars.
A Repeat Offender, According to the State
The dealership was already on probationary status following a prior $3,000 fine for separate violations. In this case, state investigators identified nearly 30 vehicles they allege were mislabeled, resulting in the license suspension.
State Rules on Loaner Vehicles
Michigan regulations classify loaner vehicles as used cars regardless of how they’re used by the dealership. The state issued a reminder to dealers in late 2024 specifically warning against this practice. LaFontaine has characterized the issue as a paperwork misunderstanding, pointing to what it describes as confusing manufacturer guidelines around loaner vehicles used in warranty programs.
Part of a Pattern for the Dealer Group
This isn’t the first time a dealership within the same ownership group has faced regulatory scrutiny. A related Hyundai store in Livonia was previously cited for issues involving odometer discrepancies, missing titles, and vehicle misrepresentation, following which the dealership pledged to improve its practices.