Not long ago, Carvana was a darling of the used car industry that once boasted a share price of over $360 less than two years ago. It is now trading for a touch over $7 a share and seems prone to making mistakes far too often, as the case of Wasim Akram demonstrates.
In 2021, the Texas resident purchased a 2015 Toyota Corolla for a little under $19,000 from Carvana after taking out a bank loan with a 4.3% interest rate. It was advertised with 13,331 miles (21,454 km) on the odometer and after taking delivery, Akram proceeded to drive it for all of 2022 without issue. However, when the time came to renew his registration, he discovered that there had been a hold on the car’s title the entire time he had owned it.
The Harris County Tax Office in Texas denied the registration renewal request, revealing that the Corolla’s stated odometer reading did not match what it had on record. A letter sent to Akram from the tax office revealed that the odometer reading had dropped from 22,756 miles (36,622 km) to 13,343 miles (27,473 km).
Read: Carvana Admits To Breaking The Law Again, This Time In Illinois
“The odometer reading went down from 22,756 to 13,343,” reads the registration denial letter from the Harris County Tax Office, according to a report from KPRC 2.
While trying to resolve the issue with Carvana, Akram was informed that the Corolla was sold to him with the correct mileage, and that the old mileage was listed on the car’s title due to a clerical error. “They won’t be able to fix it. And they said they missed… like when they did the title, they wrote wrong. That’s what they told me,” he said, and added that Carvana referred to it as a “typo.” Akram expressed his frustration, saying, “I was driving the car like it was illegal. That’s what it was. I mean, with no registration.”
Unable to register the car, Carvana took the Corolla from him and paid off the rest of his loan. It also returned his down payment.
Inflation has hit hard since Akran purchased the Toyota and while searching for a used car to replace the Corolla, the most competitive interest rate he could find was almost 6 per cent higher than the one he had originally secured. KPRC 2 notes that Carvana has offered to pay Akram $1,000 to help cover the expenses of a more costly loan.
“Back in 2021, we listed this vehicle with the correct mileage and the customer paid the appropriate amount as it was accurately advertised,” Carvana communications director Kristin Thwaites said. “Unfortunately, the paper title showed a discrepancy due to a clerical error and we’re compensating Mr. Akram to make it right considering the hassle he’s experienced in this rare instance.”
