Suspended Michigan Dealership Denies Selling Used Units as New

The Michigan Department of State briefly suspended LaFontaine Chevrolet Buick GMC of St. Clair’s license this week after accusing the store of selling “new” vehicles that don’t qualify as such under state law.
“These violations created an imminent threat to the health, safety or welfare of the public, requiring emergency action,” states an MDS release, which details a series of failed inspections and warnings that preceded the suspension.
Fox 2 Detroit reports the units in question were briefly used as loaners. Dealership personnel are accused of falsifying title and registration applications to qualify them as new under Michigan’s strict statutes.
In a statement, LaFontaine Chevrolet executives blame a “clerical error” for any miscategorized sales and urge lawmakers to square their requirements with those set forth by OEMs and finance sources.
“Under current manufacturer and lender definitions, vehicles utilized in manufacturer-approved rental or service loaner programs fully qualify as new vehicles. … However, Michigan’s outdated titling laws still require such vehicles to be classified as used, even though they meet all qualifications for new vehicle incentives and warranties,” the statement reads, in part. “As a result, these vehicles are sold to customers as titled used cars — despite being eligible for new-vehicle benefits — a regulatory inconsistency unique to Michigan.”



