Carvana, an online used car retailer known for its multi-story car vending machines, has been banned from selling cars in the Raleigh area of North Carolina until January 2022.
The North Carolina Division of Motor Vehicles has sued Carvana claiming that it failed to deliver titles to the DMV while also selling vehicles without a state inspection and issuing out-of-state temporary tags for a vehicle sold to a person in North Carolina. As such, it has revoked Carvana’s dealer’s license for violating dealer licensing laws.
The Wall Street Journal reports that a settlement between the DMV and Carvana will see the company’s dealer license suspended until January 29. Carvana will also pay a nominal civil penalty for $500 and a $200 administrative hearing fee.
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“We’re pleased that we were able to reach a solution with the North Carolina DMV,” Carvana spokeswoman Amy O’Hara said in a statement. “We’re proud of the tens of thousands of North Carolina residents we’ve served since 2014 and are excited to continue delivering exceptional customer experiences there for many years to come.”
All vehicles at Carvana’s Raleigh location must be clearly marked ‘Not For Sale’ for the following six months and the company must also conduct a review of sales at all four of its locations in the statement. These other three locations, located in Charlotte, Concord and Greensboro, can continue to operate during the suspension.
Carvana offers next-day delivery of used vehicles in 301 cities across the United States and in July, was North Carolina’s top seller of used cars, titling 587 vehicles.
