Michigan dealership busted for mixing up this tiny detail: Which cars on their lot are new or used

LaFontaine Chevrolet Buick GMC of St. Clair, located in China Township, Michigan, has reopened after a brief suspension of its license. However, the dealership’s return to business comes amid new scrutiny from state regulators.

According to the Michigan Department of State (MDOS), the dealership sold previously used vehicles as service loaners but called them brand new, in what the agency described as a serious violation of consumer protection laws. The MDOS ordered the dealership’s license suspended on November 4, 2025, citing “imminent harm to the public.”

According to Fox 2 Detroit, state investigators uncovered more than two dozen used vehicles still registered and sold as new. In one case, La Fontaine listed a car with roughly 6,000 miles on the odometer as a new sale.

LaFontaine blames user error

LaFontaine has pushed back against the state’s findings. In a statement, the dealership described the problem as a “clerical error” related to the completion of a specific vehicle sales form, emphasizing that the mix-up was unintentional and that they never intented to mislead customers.

Company officials pointed to what they described as a “longstanding disconnect” between automaker definitions of new vehicles and Michigan’s titling requirements. Automaker and lender standards consider vehicles used in manufacturer-approved service loaner programs new, but state law treats them as used. The dealership characterized the state’s action as “overzealous” and said it stemmed from “outdated” regulatory language.

The state had previously disciplined LaFontaine in late 2024 after an earlier inspection found the same pattern. The state and LaFontaine resolved that case under an Alternative Penalty Agreement that included a fine and probation. However, after regulators returned for another inspection on September 24, 2025, they said the same violations were still occurring, prompting the emergency suspension.

State officials have countered that the rules are clear: once a car is driven by anyone outside the dealership, including as a service loaner, it must be titled and sold as a used car.

Misrepresenting it as new, they say, undermines consumer confidence and could result in buyers paying higher prices or missing out on proper disclosures about mileage and vehicle wear. The MDOS emphasized that the enforcement action was necessary to ensure fair dealings in Michigan’s automotive market.

Following negotiations with the state, LaFontaine’s license was reinstated, and the dealership resumed operations. The terms of the reinstatement reportedly include a $25,000 civil fine, an extended probationary period through December 2026, and additional training for staff involved in vehicle titling and sales documentation.