Carvana is known for offering a convenient remote car buying experience, but the company also has a growing reputation for dropping the ball with customer service and meeting regulatory requirements. Illinois has taken the company to task several times, and now it appears Michigan authorities are ready to crack down. The Michigan Department of State (DoS) has suspended a Carvana dealership’s license after it found more than 100 title delays and other violations.
Michigan first hauled Carvana into a hearing back in March 2021. At that time, the state fined Carvana $2,500, and the company admitted to several violations. Carvana was back in a hearing in January 2022 for violating the terms of its probation, and the company paid a $5,000 fine. Officials say they continued receiving complaints and hearing from people who couldn’t get the title for their new cars, leading the state to suspend Carvana’s license.
Though the state suspended Carvana’s license, it now wants to revoke the company’s dealer’s license. Illinois and Michigan may be taking action against the company, but they’re hardly the only problem spots. Earlier this year, a Maine woman pursued the company for reimbursement after a Volkswagen Tiguan she’d just bought broke down at a gas station and ended up towed. Her ordeal cost almost $2,000, and Carvana didn’t agree to pay for her expenses and time until after the story grabbed national news attention.
Carvana saw its fortunes and stock prices soar as the pandemic shut down traditional car dealerships and people avoided shopping in person. Cracks have begun showing in the company’s foundation, though, as heavy losses and a shift in car prices have caused its stock to tumble and led to thousands of layoffs.