Things aren't going great for the online retailer.
Carvana just can't seem to catch a break. The online used car business is in the news again for all the wrong reasons, with Florida officials filing administrative complaints against the dealership, due to title delays. This is according to 8 On Your Side, a Floridian news agency that reports the two complaints have a combined total of 33 counts, with each count representing a frustrated customer.
The state of Florida and its Department of Highway Safety and Motor Vehicles (DHSMV) has claimed Carvana has repeatedly failed to transfer titles to customers within 30 days, as required by Florida law.
In many instances, some new vehicle owners have had to wait more than 100 days to receive the title. Shockingly, one individual had to wait 253 days.
It seems the company has difficulty dealing with this seemingly easy admin task. In Texas, one Carvana customer waited 455 days to receive the tags for her pre-owned Hyundai Elantra. The latest complaints leveled at the online dealership may threaten its ability to conduct business in the Sunshine State.
As per the report, Florida officials may decide to suspend or nullify Carvana's license to sell vehicles.
This has already happened in Illinois. In July, the Secretary of State revoked the company's right to conduct business in the state. However, the online dealer quickly remedied this by filing a motion for injunctive relief, later granted by a judge.
While the automotive retailer has since resumed business in Illinois, it has to "conduct business under strict guidelines," said Illinois Secretary of State Dave Druker.
Despite facing the risk of having its license suspended in Florida, Carvana may also face fines up to $1,000 per infraction. Alternatively, the company could potentially enter into settlement agreements of $8,000 and $25,000. In a statement, Carvana expressed concern for the problem and promised it is working on a remedy.
"These are very old cases that have now worked their way through the administrative process, and the underlying customer situations have long since been addressed in close partnership with DHSMV," reads the statement. "We look forward to resolving the matter and continuing to provide the best customer experience available in Florida."
This isn't a good look for the brand and continued issues could prove to be a PR nightmare. Hopefully, the dealership can get control of its issues before customers steer clear of the service entirely.