Hyundai dealership closed for business after state strips license over ‘imminent harm to public’ & had to pay to reopen
After using devious tactics to deceive clients and endanger the public, a DEALERSHIP was closed.
When Michigan state officials looked into the Hyundai business in Detroit, they discovered a number of infractions.
LaFontaine Hyundai of Livonia’s owners acknowledged their mistake and paid a fine to regain their license.
Following the Michigan Department of State’s warning to drivers that dealership staff had fabricated paperwork to deceive clients into believing they were leasing a new vehicle, the drama started on Thursday.
Salespeople would negotiate with drivers without supplying the required documentation or correct odometer readings, according to regulators.
Some staff neglected to fill out the state’s application for title and registration, and they refused to grant leasees a temporary registration.
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According to inspectors, the dealership would occasionally wait weeks after the buyer took the automobile home before submitting an application for the documentation in their name.
“These violations created an ongoing imminent threat to the public health, safety, or welfare of the public, requiring emergency action,” the department stated in a press release.
According to regulators, LaFontaine Automotive Group, which owns and runs 40 dealerships, deliberately opted to disregard the rules despite being fully aware of them.
Not everyone complied with the state department’s advisories that stressed the legal requirements for car leasing at the group’s corporate headquarters.
Although LaFontaine acknowledged that clients had been duped, she emphasized that efforts were underway to discipline staff and regain the trust of customers.
“We want to be clear: we find these actions completely unacceptable,” the group told the Detroit Free Press in a statement.
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“Those implicated have been subject to immediate repercussions, and we are thoroughly reviewing all policies and processes to make sure that similar situations never occur again.
“We do not take this situation lightly.”
LaFontaine promised to fix the error by addressing specific oversights and implementing company-wide training.
“It is our goal to remember this situation swiftly and responsibly while reinforcing our commitment to integrity and exceptional service,” the business stated.
LaFontaine has been contacted by the U.S. Sun to inquire about any further developments in the case.
What to do if a dealership closes
You might be worried about the consequences if you recently purchased a car or motorcycle from a dealership that abruptly closed.
A sudden shutdown can leave some customers feeling as though they have no other options or that their automobile will be repossessed if they require warranty repairs done at an approved dealership or finance a new car or motorcycle.
Following an official notice, you can take the following actions if your circumstances seem like that:
- Notify the bank hosting your loan of the closure to make them aware. If the financing is done through the dealership itself, it’s important to contact the dealership or your salesperson to ask how to keep up your payments. Many dealerships will send the lien (the title and registration that will only be released to the buyer after the debt is paid) to a financial institution to keep.
- If the dealership cannot be contacted through traditional means, most states allow drivers to apply for the title and registration through the DMV.
- If you leased a car from a dealership that went out of business, instructions should be sent as to which dealership to bring your vehicle to when the lease expires. If not, contact the dealership.
- A factory warranty through the manufacturer will be honored at any other authorized dealership. However, an extended warranty through the dealership may not be honored at other repair shops, so it’s important to seek that information from the dealership as soon as possible.
Consumer Law Group is the source.
MORE DEALERSHIP NEWS
Recently, there has been some turbulence at other dealerships around the nation.
After deceiving clients into paying an additional price, another company was fined $10,000 per car.
The COVID-19 pandemic caused car prices to soar in 2020, but when supply and expenses begin to level out, dealerships must adapt.
Some closures have resulted from this in 2024.
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