Settlement between Carvana & Michigan leaves used car retailer without a state license

Carvana claimed on Jan. 11 that it’s “back to business as usual.” However, Michigan state regulators disagree, stating that the company’s Novi site is no longer a licensed dealership. 

In an ongoing dispute over the state’s claim that Carvana violated the Michigan Vehicle Code, which Carvana acknowledged doing, Carvana and the state agreed upon a settlement. State regulators suspended the Novi dealership license at the beginning of October ’22, citing “imminent danger to the public,” which Carvana refuted. 

According to the state, Paul Breaux’s Carvana LLC violated various laws by failing to deliver vehicle titles in a timely manner after purchases. The alleged infractions were uncovered during a state regulatory staff examination into several consumer complaints about title issues with their vehicles.

Carvana agreed to voluntarily surrender its three-year in-state Michigan dealer license, after which it may reapply. Additionally, the Novi Carvana dealership entered into a plea agreement with the Secretary of State Jocelyn Benson in order to avoid paying taxpayer money for court fees. 

Since Michigan law permits e-commerce, the settlement doesn’t significantly affect Michigan consumers who could still order a car from Carvana online and have it delivered to them, even while suspended. 

Carvana’s senior associate general counsel, Chris Olson claimed, “for us here in the state of Michigan, it’s business as usual.” Customers are welcome to continue doing business with Carvana, as they look forward to helping the state.

The resolution of the dispute, according to Carvana, enables both parties to move on and the company to continue serving Michigan’s car customers while putting new procedures in place to ensure compliance with Michigan law.

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