Department of State suspends Novi Carvana dealership
NOVI, Mich. (CBS DETROIT) - The company known for its car vending machines, Carvana, is suspended in Oakland County.
The Michigan Department of State (MDOS) suspended the license of the Novi vehicle dealer for "imminent harm to the public."
According to the state, the company has been suspended for multiple alleged violations of the Michigan Vehicle Code. The state said the violations were discovered during an MDOS investigation after multiple no-title complaints from consumers.
The violations include:
- Failing to make application for title and registration within 15 days of delivery for 112 customers since agreeing to an earlier probation extension
- Committing fraudulent acts in connection with selling or otherwise dealing in vehicles where Carvana employees admitted to destroying title applications and all applicable documents pertaining to the sale of three vehicles that were sold to customers and Carvana took the vehicles back
- Failing to maintain odometer records
- Improperly issuing temporary registrations
- Failing to have records available for inspection during reasonable or established business hours
- Possessing improper odometer disclosure records on which the odometer disclosure had been signed on behalf of the purchaser
- Violating terms of a probation agreement 127 times
The dealership's issues began in February 2021, when the state said MDOS staff conducted a general compliance inspection and issued multiple notices of non-compliance.
MDOS and Carvana representatives had a preliminary conference March 23, 2021 to address the violations, and on May 7, 2021, Carvana entered an 18-month probation agreement with a $2,500 administrative fine and admission of several violations of the Code. The state said one stipulation was that all dealership employees that handled paperwork would attend the department's dealer training program.
After the dealership violated the probation agreement, the state said MDOS held a second preliminary conference with multiple Carvana representatives on Jan. 11, 2022. The department said they continued to work with Carvana on compliance and on Feb. 7, 2022, Carvana representatives signed a six-month probation extension with a $5,000 administrative fine and admission of several more violations of the Code.
Following the signing of the probation extension, MDOS said they received several no-title complaints from consumers and conducted the investigation that led to the current violations and suspension.
The department will seek revocation of the dealer's license at an administrative hearing.
Carvana LLC is owned by Paul W. Breaux and is located at 26890 Adell Center Drive in Novi.
Consumers who have a complaint against Carvana, or who have purchased a vehicle from that dealer and have had problems obtaining the title, are encouraged to call the Office of Investigative Services automotive complaint line at 517-335-1410.