LaFontaine Hyundai of Livonia, a Michigan-based dealership, has had its license suspended by the Michigan Department of State (MDOS) for allegedly leasing used vehicles as new.
According to a report by Motor1.com, the dealership faces accusations of multiple violations of the Michigan Vehicle Code, which the state claims pose a significant risk to public safety.
An MDOS investigation revealed evidence suggesting that the dealership engaged in “fraudulent acts,” including falsifying vehicle documentation to misclassify used cars as new in official applications. Some of the key violations alleged by the MDOS include:
Falsely stating customer non-delivery to lease used cars as new.
Failing to provide immediate title possession with accurate odometer readings.
Improper issuance of temporary registrations.
Submitting incomplete title and registration applications.
Failing to register vehicles in buyers’ names within 21 days of delivery.
These actions, according to MDOS, constituted “an ongoing imminent threat to the public health, safety, or welfare,” prompting the department to take swift action by suspending the dealership’s license.
LaFontaine Automotive Group Responds
The LaFontaine Automotive Group, which owns the Livonia dealership, acknowledged the suspension in a statement to Automotive News.
The company attributed the fraudulent activities to a small group of rogue employees who allegedly acted outside of company policies. The group emphasized its commitment to resolving the issue and stated that it has introduced corrective measures, including enhanced training programs and increased oversight to prevent future incidents.
Potential Legal Action
The MDOS investigation also points to potential involvement by LaFontaine’s corporate headquarters. Evidence reportedly suggests that corporate offices may have directed dealerships to submit false information about vehicle classifications, even after official state guidance clarified the proper procedures for identifying used cars.
MDOS is currently reviewing the case and may refer it to the Michigan Attorney General’s office for further investigation and possible legal action.
Consumer Awareness
This case underscores the need for consumer vigilance when purchasing or leasing vehicles. Prospective buyers are encouraged to verify a car’s history through independent reports and ensure the vehicle’s classification, whether new or used, aligns with official documentation before signing agreements. Transparency and diligence are essential to avoid falling victim to fraudulent practices.