Carvana Could Lose Florida Dealer License


Florida officials could soon suspend used car retailer Carvana’s dealer license after increasing issues with title transfers, Seeking Alpha reported Monday (Dec. 20).

The Florida Department of Highway Safety and Motor Vehicles sent an email to Carvana, saying that it “remains concerned with Carvana’s apparent inability to comply with the provisions of Florida law requiring a dealer to apply for title within 30 days of the sale and the impact that has on Florida consumers.”

The department’s email gives Carvana a Jan. 31, 2022, deadline before the agency will launch administrative action to suspend Carvana’s Florida dealer license. The email exchange includes a list of 300 Carvana vehicle sales with titles that are awaiting transfers, including 100 in Florida.

Related: Carvana Says Partnerships Provide New Horizontal, Vertical Opportunities

In its November earnings call, Carvana pointed to its collaborations with vehicle rental company Hertz on an online sales channel and InsurTech carrier Root to develop integrated auto insurance solutions for Carvana’s online car-buying platform.

After piloting the offering in September, Carvana and Hertz are partnering nationally, enabling Hertz to use Carvana’s online transaction technology and logistics network as another channel to sell the used vehicles from its rental fleet.

Carvana’s logistics network will allow Hertz to expand its retail reach beyond its 68 Hertz Car Sales locations in 300 U.S. markets. Root is integrating auto insurance alongside the existing car purchasing and financing experience offered to customers on the online car buying platform.

See also: Carvana in Government Crosshairs After Increased Complaints

Carvana is on probation in Michigan after it violated state laws, including some related to transfer of titles and registrations, the news outlet reported, and has been fined $10,500 in Texas for issues related to paperwork.

In August, Carvana was suspended for six months from selling cars at its dealership in Raleigh, North Carolina, because it broke the state’s dealer licensing laws. Another location was put on probation for more than a year.

The company also paid $850,000 to four counties in California in a civil lawsuit when Carvana sold and transported cars without the proper licenses.

The Better Business Bureau fielded 899 complaints from Carvana shoppers this year through the end of September, more than double the 411 issues reported to the BBB with competitor CarMax. Carvana customers have also filed dozens of complaints with officials in Ohio, Texas, Georgia and North Carolina.