Carvana Surrenders Michigan Dealers License, but Can Still Deliver Cars in the State - With a Catch
If you’d been hiding under a rock and just started reading the news in the last couple of months, it’d be easy to wonder how Carvana is a thing at all. The company’s troubles seem to grow by the day, though a recent story out of Michigan shows a few bright spots for the online auto retailer.
Michigan suspended Carvana’s dealer license late last year because of issues with vehicle paperwork and odometer problems. Rather than deal with further fines and legal action from the state, Carvana agreed to surrender its license, but that doesn’t mean Michiganders can’t buy cars from the company.
The Novi, MI, location won’t be able to sell cars, but customers can order online and pick them up at the site. The only problem is that the vehicles come titled in a different state and must be re-titled in Michigan. Customers can also ask questions about the company’s sales process but can’t do any paperwork for their vehicles at the location.
The agreement forbids Carvana from applying for a dealer’s license over the next three years and requires the company to pay a $10,000 fine to pay for the investigation costs. Carvana got into this mess last year when the state alleged it failed to apply for the title and registration on vehicles it sold within the required 15-day window. The state said Carvana also failed to maintain proper odometer records and improperly issued temporary registrations.
[Image: Jonathon Weiss via Shutterstock]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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