Michigan suspended Lafontaine Hyundai's license after finding violations in how the dealership handled customer transactions
In 2023, the Michigan Department of Secretary of State's Office of the Automotive Regulatory Compliance Division suspended the dealer license for Lafontaine Hyundai, located in the Detroit suburbs. The suspension came after an investigation found that the dealership violated state motor vehicle sales laws. Specifically, regulators determined that Lafontaine Hyundai engaged in deceptive practices related to vehicle pricing, financing disclosures, and customer documentation — violations serious enough to warrant removing the dealership's right to sell vehicles in Michigan.
This case matters to you as a car buyer because it shows what happens when a dealership breaks the rules that protect consumers. Understanding why a license gets suspended helps you recognize warning signs at other dealerships and know what recourse you have if something goes wrong during a purchase.
Key Takeaways
- Lafontaine Hyundai's license suspension resulted from violations in pricing transparency, financing disclosures, and how the dealership documented customer transactions.
- The Michigan Department of Secretary of State's Office of the Automotive Regulatory Compliance Division investigates dealership complaints and enforces state motor vehicle sales laws.
- A suspended license means the dealership cannot legally sell vehicles in Michigan, though existing customer disputes may still be resolved through the state's complaint process.
- Buyers who purchased vehicles from Lafontaine Hyundai before the suspension can file complaints with the state if they believe they were harmed by the same violations that led to the suspension.
What violations led to the suspension
Michigan's motor vehicle sales laws require dealerships to disclose all material facts about a vehicle's condition, price, and financing terms before a customer signs a contract. Lafontaine Hyundai failed to meet these standards in multiple ways. The dealership did not clearly disclose all fees and charges, misrepresented vehicle pricing, and failed to provide customers with accurate written documentation of their financing agreements.
These are not minor paperwork oversights. State law treats them as deceptive practices because they directly affect what a customer pays and what they understand about their purchase. When a dealership hides fees, inflates prices, or obscures financing terms, customers cannot make informed decisions — which is exactly what the licensing system is designed to prevent.
How Michigan's dealership licensing system works
Every motor vehicle dealer in Michigan must hold a license issued by the Department of Secretary of State. To get a license, a dealership must meet specific requirements: the owner must pass a background check, the business must have a physical location, and the dealership must demonstrate knowledge of state motor vehicle sales laws. Once licensed, dealerships are subject to ongoing compliance audits and customer complaint investigations.
When the state receives complaints or discovers violations during an audit, the Office of the Automotive Regulatory Compliance Division can take action. The options range from a warning letter to a fine, a temporary suspension, or a permanent license revocation. A suspension means the dealership cannot legally sell vehicles during the suspension period. A revocation means the license is permanently canceled and the dealership cannot operate as a motor vehicle dealer in Michigan.
What happens to customers who bought from a suspended dealership
If you purchased a vehicle from Lafontaine Hyundai before the license suspension, you still have rights. A suspended license does not erase your purchase contract or your legal protections under Michigan's Lemon Law or the Motor Vehicle Sales Act. You can still file a complaint with the state if you believe the dealership violated the law during your transaction.
The state's complaint process allows you to document what happened, provide evidence (such as your contract, financing paperwork, or photos of undisclosed damage), and request an investigation. If the state finds that the dealership violated the law, it can order the dealership to refund money, repair the vehicle, or take other corrective action. The fact that the dealership's license is now suspended actually strengthens your case, because the state has already determined that the dealership engaged in unlawful practices.
How to file a complaint if you were affected
To file a complaint about your purchase from Lafontaine Hyundai, contact the Michigan Department of Secretary of State's Office of the Automotive Regulatory Compliance Division. You can file online through the state's website or by mail. You will need to provide your name, contact information, the vehicle identification number (VIN), the date of purchase, and a detailed description of what happened.
Include copies of your purchase contract, financing agreement, any written communication with the dealership, and photos of the vehicle if the complaint involves undisclosed damage or condition. The state will review your complaint and may contact you for additional information. If the investigation confirms a violation, the state can order the dealership to make things right — even if the dealership's license is suspended.
Warning signs that a dealership may be breaking the law
Knowing what Lafontaine Hyundai did wrong can help you spot similar problems at other dealerships. Watch for dealerships that do not clearly list all fees in writing before you sign, that pressure you to sign documents without reading them, or that change the price or terms after you have agreed to a deal. Be cautious if a dealership refuses to give you a copy of your contract or financing paperwork, or if the numbers on your paperwork do not match what you were told verbally.
Other red flags include a dealership that will not disclose a vehicle's accident history or service records, that claims a vehicle has "no issues" without providing a pre-purchase inspection report, or that pressures you to finance through their preferred lender without showing you other options. If something feels off during the buying process, ask questions and request everything in writing. A legitimate dealership will have no problem providing clear, honest documentation.
Your rights under Michigan motor vehicle sales law
Michigan's Motor Vehicle Sales Act gives you specific protections when you buy from a licensed dealership. The dealership must provide you with a written contract that includes the vehicle's condition, all fees and charges, the financing terms (if applicable), and any warranties. The dealership must disclose known defects and cannot misrepresent the vehicle's history, mileage, or condition.
If a dealership violates these rules, you may be may have access to to rescind the sale (return the vehicle and get your money back), receive a refund of specific charges, or obtain repairs at the dealership's expense. You also have the right to file a complaint with the state at any time — there is no time limit for reporting violations that harmed you. The state can investigate even after the dealership's license has been suspended.
Frequently Asked Questions
Can I still drive a vehicle I bought from Lafontaine Hyundai after the license suspension?
Yes. The suspension affects the dealership's right to sell vehicles, not your ownership of the vehicle you already purchased. You own the car and can drive it legally. However, if you believe the dealership violated the law when you bought it, you can still file a complaint and seek a remedy.
What should I do if I'm having problems with a vehicle I bought from this dealership?
Document the problem with photos and written notes about when it started. Gather your purchase contract, warranty paperwork, and any service records. Contact the Michigan Department of Secretary of State's Office of the Automotive Regulatory Compliance Division and file a complaint. Include all documentation and explain how the dealership's actions violated the law.
Does the license suspension mean the dealership will never reopen?
A suspension is temporary; a revocation is permanent. A suspended dealership may be able to reapply for a license after the suspension period ends, but only if it corrects the violations and meets all state requirements. The state will determine whether to allow the dealership to operate again based on whether the violations have been remedied.
Can I get my money back if I bought a vehicle from Lafontaine Hyundai?
That depends on what went wrong. If the dealership violated the Motor Vehicle Sales Act — for example, by hiding fees or misrepresenting the vehicle's condition — you may be may have access to to a refund or other remedy. File a complaint with the state and explain the violation. The state's investigation will determine what action the dealership must take.
How do I know if other dealerships near me are licensed and in good standing?
You can search the Michigan Department of Secretary of State's database of licensed motor vehicle dealers online. The search tool shows which dealerships hold active licenses and whether any complaints or violations are on record. Checking before you buy gives you confidence that you are working with a legitimate, compliant business.