Carvana is in legal trouble yet again, and the consequence this time is that two of its locations in Pennsylvania will no longer be able to perform motor vehicle titling and registration actions. Both will still be able to sell vehicles, though.
The suspension will affect locations in Philadelphia and Bridgeville, a suburb of Pittsburgh. It’s not clear precisely why the used vehicle retail locations were singled out by the state’s department of transportation, but it cited administrative contract violations.
“Suspensions imposed on agents are the result of violation(s) found during routine audits or from an investigation into complaints regarding an agent,” Pennsylvania Department of Transportation spokesman, Diego Sandino, told Automotive News.
Read: Carvana’s Difficulties Continue As Shares Fall To Lowest Point On Record
A Carvana spokesperson, meanwhile, said that the locations’ ability to sell cars “is unaffected,” and that the suspension “only affects back end processing workflows while we work to resolve PennDOT’s concerns.”
The spokesperson claimed that the company has been compliant throughout the term of the suspension, and accused the department of refusing to meet with it. It has, therefore, concluded that the suspension was issued without the government “understanding our operations and in violation of our due process rights.”
This is neither the first time that Carvana has gotten into regulatory trouble, nor the first time that it has accused a regulatory authority of violating its rights. After its license to sell vehicles in Michigan was revoked, the retailer attempted to get a temporary restraining order against the Secretary of State.
The motion was denied and Carvana vowed to fight back, saying that it was disappointed and that the state “brazenly violated its own rules and regulations and due process requirements.” Again, Carvana was in trouble for issues relating to titles and transfers.
Earlier this month, the company’s share prices fell to their lowest point ever after it reported that it had missed its Q3 targets for 2022. Carvana’s CEO said, at the time, that next year will be “a difficult one.”
