Michigan Dealership Caught Selling Used Cars as New — Did It Again and Lost Its License
GM Dealer License Suspended For Allegedly Selling Used Loaners As New
A General Motors dealership in Michigan has had its business license suspended after state regulators determined it was selling used vehicles as new — despite prior warnings and penalties for the same conduct.
According to the Michigan Department of State (MDOS), LaFontaine Chevrolet Buick GMC of St. Clair, Inc. engaged in deceptive sales practices that posed “imminent harm to the public.” The department said the violations were uncovered during a follow-up inspection on September 24, 2025, roughly a year after similar issues were first identified.
During that 2024 inspection, investigators found the dealership had been taking vehicles from its loaner fleet and reselling them as new once their use ended. The business was fined $3,000 and placed on an 18-month probation. However, MDOS said the 2025 inspection revealed that the dealership had continued the same practice.
Officials reported finding more than two dozen vehicles improperly sold as new, including one with nearly 6,000 miles already on the odometer. Regulators called the conduct a serious threat to public safety and immediately suspended the dealership’s license.
The dealership, which sells Chevrolet, Buick, and GMC vehicles, will remain closed until further notice. The suspension comes during a crucial period for auto dealers, as end-of-year sales and incentives typically drive major traffic to showrooms.
GM’s luxury brand, Cadillac, is not sold at this location. The Michigan Department of State has encouraged affected customers or anyone with related complaints to contact its Office of Investigative Services automotive complaint line at 844-372-8356.
The case has added new momentum to a broader national effort to strengthen consumer protection in the auto industry — a topic that has drawn growing attention during President Trump’s administration. On the West Coast, California is preparing to roll out the Combating Auto Retail Scams (CARS) Act in 2026, designed to ensure transparency and fairness for car buyers. The new law will require full disclosure of all sale details, prohibit deceptive pricing, and introduce a three-day return window to help prevent fraudulent or misleading transactions.
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