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Michigan Suspends LaFontaine St. Clair GM Dealer Over Alleged Sales of Loaners as New

Regulators say a September inspection found repeated violations despite prior penalties.

Overview

  • The Michigan Department of State halted the dealership’s license citing “imminent harm to the public,” barring it from conducting business pending resolution.
  • Inspectors reported more than two dozen instances on Sept. 24, 2025 of loaner vehicles later sold as new, including one with about 6,000 miles.
  • An earlier probe in September 2024 led to a $3,000 Alternative Penalty Agreement, an 18‑month probation, and required training, followed by statewide warnings in October 2024.
  • LaFontaine denies fraudulent intent, attributing the issue to RD‑108 paperwork errors and a mismatch between automaker program rules and Michigan titling law, and says it is cooperating.
  • MDOS previously took action against LaFontaine Hyundai in Livonia in December 2024 over irregularities that included used cars represented as new.