License of Novi Carvana dealer suspended by state of Michigan

Posted at 11:35 PM, Oct 07, 2022
and last updated 2022-10-07 23:35:00-04

NOVI, Mich. (WXYZ) — The Michigan Department of State is putting the brakes on a Carvana dealership in Novi.

Its license is suspended over alleged violations of the Michigan Vehicle Code.

The state says the list includes failing to meet filing deadlines for titles and failing to maintain odometer records.

The Novi Carvana is also accused of violating the terms of a probation agreement over previous issues 127 times.

Carvana sent 7 Action News the following a statement:

The State’s action represents another example of gross regulatory overreach that in no way benefits the State’s consumers. Over 98% of our Michigan customers receive their registration in a timely manner and the State’s suspension is based on isolated incidents representing 1% of our Michigan sales. The suspension papers were served without notice and in violation of Carvana’s due process. Carvana is ready and willing to discuss a swift resolution with the State, as we’ve already solved the concerns outlined in the notice. In the meantime, Carvana will continue to fulfill orders for Michigan customers who are on our schedule.

Carvana pioneered online car buying by providing exceptional customer experiences, and we've grown faster than any used car retailer in U.S. history to become the second largest in the country while achieving an industry-leading Net Promoter Score (NPS) and a 4.7 out of five star customer experience rating average. We look forward to continuing to make the best car buying and shopping experience available even better.

We plan to file a lawsuit against the State to block the suspension, as we successfully did in Illinois. We also note that late title transfers are based on the State’s 15-day deadline, which Michigan recently recognized was too short, passing a new law that extended the deadline to 21 days.