LaFontaine in St. Clair allegedly sold used loaner vehicles as new

The Michigan Department of State has suspended the business license of a St. Clair County auto dealership following multiple violations of the Michigan Vehicle Code, according to a statement released by the agency.

The suspension applies to LaFontaine Chevrolet Buick GMC of St. Clair, Inc., located at 3050 King Road in China Township.

State investigators with the Michigan Department of State (MDOS) uncovered the alleged violations during a routine investigation. Among the findings were:

• Breaching terms of an existing probation and the Alternative Penalty Agreement previously issued by the department.

• Engaging in fraudulent practices related to vehicle sales by marketing and selling used cars as new.

• Submitting inaccurate title and registration applications by falsely classifying used vehicles as new.

During a compliance inspection in September 2024, MDOS officials reported that the dealership had been registering new vehicles under its own business name and then using them as loaner cars.

After those vehicles were removed from the loaner fleet, investigators said, the dealership later sold them to customers as “new.”

In an October 2024 email, the department and the Michigan Auto Dealers Association jointly reminded all new car dealers that selling used vehicles as new would result in administrative penalties, including possible suspension of their license.

The following month, in November 2024, MDOS representatives held a teleconference with LaFontaine Chevrolet Buick GMC of St. Clair Inc. to review the inspection results and the cited violations.

About a month later, the agency imposed a $3,000 fine and placed the dealership on an 18-month probation, according to the release.

When officials conducted a follow-up inspection almost a year later, on September 24, they reportedly found more than 24 additional cases in which used vehicles had again been sold as new. One of those vehicles had nearly 6,000 miles on it, the agency noted.

“These violations created an imminent threat to the health, safety or welfare of the public, requiring emergency action,” the Department of State said in its news release. “The dealership may not conduct business during the time of the suspension.”

The Free Press reached out to LaFontaine Chevrolet Buick GMC of St. Clair Inc. for comment, but the dealership did not immediately respond. The duration of the suspension has not yet been determined.

Consumers wishing to file a complaint against the dealership can contact the Office of Investigative Services automotive complaint line at 844-372-8356.