A Carvana used car dealer in Novi, Michigan, has agreed to surrender its dealer license to avoid additional investigative actions by state authorities who suspended its license in October over violations of the Michigan Vehicle Code.

The Carvana outlet, located not far from Detroit, faced titling, registration, and odometer issues, all of which are in direct violation of the law. The outlet had to apply for title and registration within 15 days of delivery, which it failed to do on more than one occasion.

Carvana attempted to defend itself by calling the suspension "illegal and reckless" and even filed a complaint against Michigan Secretary of State Jocelyn Benson. It also asked a state court to block the suspension. The court denied that request.

"In a plea deal signed with our department, the Carvana dealership in Novi agreed it had violated the law and to have its dealer license revoked and be barred from reapplying for a new license for three years," Department of State spokesman Jake Rollow wrote in a statement that was sent to Automotive News.

However, there is a severe downside for Carvana: it cannot apply for a dealer license in Michigan for the next three years, and it must pay a $10,000 fine to cover the cost of the investigation.

Carvana as a company has faced serious financial issues in recent months for a few reasons, among them a cooling used car market and overpaying for inventory.

As a result, Carvana has seen its stock price tumble though its shares have risen again lately. Around 1,500 employees were fired in November. Customer service has also been problematic at times.

In one instance, a Maine resident purchased a 2015 Volkswagen Tiguan that turned out to be a lemon. Carvana only offered her $300 in compensation and an unprofessional apology.

The Detroit-area dealer in question is one of many Carvana stores to face licensing issues. Late last year, two Pennsylvania locations saw their licenses suspended by state regulators due to suspected business misconduct.