LaFontaine Automotive Group is a regional dealership chain, not a financing or credit program
LaFontaine Automotive Group operates multiple new and used car dealerships across Michigan and Ohio. If you arrived here looking for information about buying a car, financing one, or understanding how dealership credit works, this guide explains what LaFontaine is and how dealership purchases typically function — so you can make an informed decision whether you shop there or elsewhere.
LaFontaine is a private company that owns and operates individual dealership locations under different brand names. Each location sells vehicles and offers financing through third-party lenders, but LaFontaine itself does not issue loans or determine your credit terms. Understanding this distinction matters because your experience depends partly on the dealership's practices and partly on the lender they connect you with.
Key Takeaways
- LaFontaine Automotive Group operates multiple dealership locations across Michigan and Ohio under different brand names, each selling new and used vehicles.
- Dealerships like LaFontaine arrange financing through third-party lenders, meaning your loan terms come from the lender, not the dealership itself.
- Your credit score and financial history determine what interest rate and loan terms you will receive, regardless of which dealership you choose.
- You can shop for a car loan before visiting a dealership, which gives you a baseline to compare against any offer the dealership presents.
- Dealership financing often includes add-ons like extended warranties or gap insurance that increase your total cost and are optional.
How dealership financing works when you buy a car
When you buy a car at a dealership like LaFontaine, the dealership does not lend you the money. Instead, the dealership arranges a loan through a bank, credit union, or finance company. The dealership submits your information to one or more lenders, those lenders decide whether to approve you and at what interest rate, and you sign a contract with the lender — not with the dealership.
This matters because the dealership's role is to facilitate the sale and the paperwork, not to set your interest rate. Your credit score, income, debt-to-income ratio, and the age and price of the vehicle all influence what rate a lender will offer. A dealership cannot override a lender's decision or may provide you a particular rate, though they can shop your process to multiple lenders to find the best offer available to you.
The dealership makes money on the sale of the vehicle itself and sometimes on the financing arrangement — for instance, if a lender approves you at 6% but the dealership marks it up to 6.5%, the dealership keeps the difference. This is legal, but it means the rate you receive may not be the lowest rate the lender would have offered directly.
Getting a pre-approval before you visit the dealership
One way to protect yourself is to obtain a pre-approval from a bank or credit union before you visit any dealership. A pre-approval means a lender has reviewed your financial information and agreed to lend you up to a certain amount at a certain interest rate, valid for a set period (usually 30 to 60 days).
When you arrive at the dealership with a pre-approval in hand, you know exactly what rate and terms you may have access to for. The dealership can still shop your process to other lenders to see if they can beat that rate, but you have a floor — you will not accept anything worse than what you already have. This shifts the negotiation in your favor and reduces the chance that the dealership will mark up your rate without your knowledge.
To get a pre-approval, contact your bank, a local credit union, or an online lender. You will need to provide proof of income, employment, and identity. The process usually takes a few days to a week. The pre-approval is not a binding commitment — you can still choose to finance through the dealership if their offer is better — but it gives you information and leverage.
What to watch for in the financing paperwork
Before you sign any loan contract, read the entire document. The contract will state the loan amount, interest rate, monthly payment, number of payments, and the total amount you will pay over the life of the loan. It will also list any add-ons the dealership has included, such as an extended warranty, gap insurance, paint protection, or service packages.
Add-ons are optional. If the dealership included them without your explicit agreement, you can ask to have them removed before you sign. Each add-on increases your monthly payment and your total cost. Gap insurance (which covers the difference between what you owe and what the car is worth if it is totaled) can be worth the cost if you are financing most of the purchase price, but paint protection and service packages are often marked up significantly and may duplicate coverage you already have through your car insurance or manufacturer warranty.
If anything in the contract does not match what you discussed with the salesperson — the price, the rate, the trade-in value, the monthly payment — ask for clarification before you sign. Once you sign, you are legally bound to the terms.
Understanding your credit score's role in the loan you receive
Your credit score is the single biggest factor in determining what interest rate you will receive. Credit scores range from 300 to 850, and lenders use them as a shorthand for how likely you are to repay a loan on time. A higher score signals lower risk and typically results in a lower interest rate.
If your credit score is below 620, many traditional lenders will not work with you, and you may be steered toward a subprime lender that charges significantly higher rates. If your score is between 620 and 680, you will likely pay a higher rate than someone with a score above 740. The difference can amount to thousands of dollars over the life of a five-year loan.
Before you visit a dealership, you can check your own credit score for free through AnnualCreditReport.com (the only federally authorized source for free credit reports) or through many banks and credit card companies. If your score is lower than you expected, you may want to delay the purchase and spend a few months paying down debt or correcting errors on your credit report before you explore for a car loan.
New versus used vehicles and what affects the loan
LaFontaine dealerships sell both new and used cars. The type of vehicle affects your financing in several ways. New cars typically have longer loan terms available (up to 84 months), lower interest rates for borrowers with good credit, and manufacturer warranties that cover repairs for a set period. Used cars often have shorter loan terms, higher interest rates, and no manufacturer warranty (though the dealership may offer an extended warranty for an additional cost).
The age and mileage of a used car also matter to lenders. A five-year-old car with 60,000 miles will may have access to for better financing than a ten-year-old car with 150,000 miles, because the newer car is less likely to need expensive repairs during the loan term. If you are buying a used car, ask the dealership for the vehicle history report (available through Carfax or AutoCheck) so you can see whether the car has been in accidents, had title issues, or had major repairs.
What happens if you cannot pay the loan
If you fall behind on your car loan payments, the lender (not the dealership) will contact you. Most lenders allow a grace period of 10 to 15 days after the due date before they report the late payment to credit bureaus. If you miss a payment, contact the lender when ready to explain your situation and ask about a payment plan or deferment.
If you miss multiple payments, the lender can repossess the car — meaning they send someone to take it back. Once the car is repossessed, the lender sells it at auction, and you are responsible for the difference between what they sell it for and what you still owe on the loan. This difference is called a deficiency, and it can be substantial. Repossession also damages your credit score severely and can remain on your credit report for seven years.
If you are struggling to make payments, contact the lender before you miss a payment. Many lenders offer loan modification, forbearance, or refinancing options that can lower your monthly payment or extend your loan term.
Frequently Asked Questions
Does LaFontaine Automotive Group set my interest rate?
No. LaFontaine arranges financing through third-party lenders, but the lender sets your interest rate based on your credit score, income, and the vehicle you are buying. The dealership can shop your process to multiple lenders to find the best rate available to you, but they do not determine the rate themselves.
Can I negotiate the interest rate at the dealership?
You can negotiate the price of the car, but the interest rate is set by the lender based on your creditworthiness. However, if you have a pre-approval from another lender, you can ask the dealership to match or beat that rate. The dealership may also mark up the lender's rate slightly, so asking them to reduce the markup is worth trying.
What is gap insurance and should I buy it?
Gap insurance covers the difference between what you owe on your loan and what your car is worth if it is totaled in an accident. It is most useful if you are financing more than 80% of the car's value. If you are putting down a large down payment or buying a used car that has already depreciated, gap insurance may not be necessary. Ask the dealership for the cost and compare it to what your car insurance company charges.
What should I do if I think the dealership made a mistake on my loan paperwork?
Contact the dealership when ready and ask them to review the contract with you. If the interest rate, monthly payment, or loan term does not match what you agreed to, ask for a corrected contract before you drive off the lot. Once you leave, correcting errors becomes much harder. If the dealership refuses to correct a clear error, contact your state's attorney general or the Consumer Financial Protection Bureau.
Can I pay off my car loan early without a penalty?
Most car loans do not have prepayment penalties, meaning you can pay off the loan early without extra fees. However, check your loan contract to be sure. Paying off early saves you interest, but make sure you have an emergency fund in place before you put extra money toward the loan, since car repairs can be expensive and unexpected.