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The Michigan Department of State said it will seek to revoke Carvana's dealer's license at an administrative hearing. Violating terms of a probation agreement 127 times.Possessing improper odometer disclosure records on which the odometer disclosure had been signed on behalf of the car buyer.Failing to have records available for inspection during reasonable or established business hours.Improperly issuing temporary registrations.

Committing fraud 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.

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Failing to make application for title and registration within 15 days of delivery for 112 customers since agreeing to an earlier probation extension.

So the state conducted another investigation that led to the current violations and suspension.Īccording to the state's media release, the violations include: In an email, Carvana spokesperson Kristin Thwaites said, "We reject the Michigan Secretary of State’s allegations as baseless and reckless and we strongly disagree with the state’s heavy-handed and abrupt effort to shut down a growing Michigan business with tens of thousands of customers over what amounts to technical, paperwork violations involving title and transfer issues."īut state officials received several complaints from consumers even after the probation extension, it said.

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The alleged violations were discovered during an investigation by the state regulatory staff of multiple complaints from consumers about title problems with their vehicles.Ī phone receptionist for the Carvana store told the Free Press she had no way to contact Breaux and directed the Free Press to Carvana's media relations. In a media release late last week, the state said Carvana LLC, owned by Paul Breaux and located off of Novi Road near I-96, committed several alleged violations of the Michigan Vehicle Code. The Michigan Department of State has suspended the license of the Carvana dealership in Novi for "imminent harm to the public," a claim Carvana calls "baseless."