Michigan Dealer Caught Allegedly Leasing Used Cars as New

The state suspended the dealer's license because it was "an ongoing imminent threat" to the public.

By: Anthony Alaniz

Dec 6, 2024 at 1:00pm ET

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A Michigan dealer had its license suspended this week after the state caught it allegedly leasing used vehicles as new, along with several other violations. The Michigan Department of State (MDOS) alleges that LaFontaine Hyundai of Livonia violated several Michigan Vehicle Code statutes, and it's currently reviewing the case to possibly refer it to the state's attorney general.

The state didn't mince words, saying, "These violations created an ongoing imminent threat to the public health, safety or welfare of the public, requiring emergency action.

The state discovered the violations as it investigated the dealer for falsifying documentation showing it was leasing used vehicles as new. Regulators allege the dealer committed "fraudulent acts," like fraudulently certifying a car as "new" on an MDOS Application for Title and Registration.

Other alleged violations include:

falsely stated a customer had not taken delivery of a vehicle to lease it new to another customer
failing to have a title in immediate possession with completed odometer information
failing to properly issue a temporary registration
failing to properly complete the application for title and registration
failing to make title and registration application in purchaser's name within 21 days of vehicle delivery

LaFontaine Automotive Group, which owns the location, confirmed the suspension to Automotive News, blaming the fraudulent actions on a "few rouge employees" who did not uphold the company values or standards.

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"We do not take this situation lightly," LaFontaine told the publication. "Effective corrective actions are already underway, and we are reinforcing training and oversight across our organization." It's working with the state to fix the situation.

During the state agency's investigation, its staff discovered that "the LaFontaine corporate office suggested submitting false information even after the bulletins [from the state reiterating how dealers classify used vehicles] were issued, and the dealership then followed this advice to allegedly sell or lease the vehicles as "new.""