NOVI, Mich. – A Novi car dealership that had its license suspended last week by the Michigan Secretary of State fired back at the allegations, calling them “baseless and reckless.”
Michigan officials said they suspended the license of the Carvana dealership on Adell Center Drive in Novi after receiving complaints from several customers who had trouble getting their vehicle titles.
Recommended Videos
The Secretary of State first started investigating the dealership in February 2021. A general compliance inspection found multiple issues, and Carvana entered an 18-month probation period, starting on May 7, 2021.
State officials said the probation agreement was violated, and the probation was extended by six months. But the department continued to receive complaints from customers who wouldn’t get their titles, and that sparked the investigation that led to the suspension, according to the state.
Here are the violations officials said they found during their most recent investigation:
- Failure 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. Carvana employees admitted to destroying title applications and all applicable documents pertaining to the sale of three vehicles that had been sold to customers, and Carvana took the vehicles back.
- Failure to maintain odometer records.
- Improper issuing of temporary registrations.
- Failure to have records available for inspection during reasonable or established business hours.
- Possession of improper odometer disclosure records on which the odometer disclosure had been signed on behalf of the purchaser.
- Violation of the terms of a probation agreement -- 127 times.
The department is aiming to revoke the dealer’s license at an administrative hearing, but Carvana released a statement denying the allegations.
“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,” the statement said, in part.
Here is the company’s full statement:
