The used car dealer with those cool towers is in legal trouble again.
Carvana is facing legal issues once again, this time in Pennsylvania. State regulators have suspended two locations from registration actions and to perform motor vehicle titling. However, both will still be able to sell used vehicles. The suspension affects retail locations in Philadelphia and Bridgeville, a Pittsburgh suburb.
This is a temporary block after Pennsylvania transportation department officials got wind some things were not operating legally. "Suspensions imposed on agents are the result of violation(s) found during routine audits or from an investigation into complaints regarding an agent," department spokesman Diego Sandino said to Automotive News.
Meanwhile, a Carvana spokesperson said that the company's "ability to sell cars and deliver industry-leading customer experiences is unaffected, and the administrative issuing agent permit in question only affects back-end processing workflows while we work to resolve PennDOT's concerns."
The company remains compliant during the suspension and has accused Pennsylvania state officials of refusing to sit down and discuss the issue. Carvana claims the state lacks "understanding of our operations and in violation of our due process rights." The Bridgeville location is "indefinitely suspended" from the agent services agreement because it was not operating in compliance. The Philadelphia location, however, will have its suspension lifted on December 28.
This is not the first time the Arizona-based used vehicle company has faced state-level problems. This past September, a Maine resident was offered a mere $300 compensation and an online apology after purchasing a mechanically troubled seven-year-old Volkswagen Tiguan.
Last month, a Carvana dealer in Detroit, Michigan saw its license suspended after dealer employees allegedly destroyed documents and failed to keep odometer records updated. Carvana further failed to make an application for title and registration within 15 days, per Michigan law, for 112 customers. This was the same reason why Florida state officials filed administrative complaints against the retailer as well. The continued legal problems are taking a toll on Carvana's publicly traded stock. Company shares dropped to record lows this past week but managed to surge a few days later.