Why Florida Threatens to Suspend Carvana’s Dealership License

Florida is threatening to suspend Carvana’s dealership license over issues relating to transfers of ownership of vehicles it has sold.

A spokesperson for the Florida Department of Highway Safety and Motor Vehicles said Automotive News this Carvana has until January 31 to submit title applications for all vehicles sold in 2021 by December 1. If it does not comply, the state “may initiate administrative action to suspend the Carvana dealer license.”

According to the WFLA television station in Tampa, who first reported the newsCarvana was informed by the state via email last week.

The email reportedly included a spreadsheet showing 300 sales of Carvana vehicles dating from 2019 that have not transferred titles, including more than 100 in Florida. State law requires retailers to apply for title within 30 days of closing the sale.

“The department has worked proactively with Carvana to identify and assist Florida clients who did not receive their title in a timely manner and in accordance with state law,” the state spokesperson said. in a press release. “Florida law allows a dealer’s license to be suspended if they do not request a timely transfer of ownership. “

In a statement to Automotive News, a spokesperson for Carvana confirmed that the company had had “ongoing and productive conversations” with state regulators, but had planned “no downtime in Florida.”

The spokesperson said that while “the vast majority” of Carvana’s customers do not experience titling issues, “the continued impact of the pandemic has created business process issues.”

As a result, “some of the benefits offered to customers by Carvana may, in rare cases, make transaction processing more complex for a small subset of our customers as our industry evolves beyond dealerships selling only to their local customers.” said the spokesperson.

In addition to delivering vehicles to customers, Carvana, the second largest used vehicle retailer in the United States, operates four vending machine locations in Florida, in Jacksonville, Miami, Orlando and Tampa. A spokeswoman for the State of Florida said Automotive News in August that Carvana had applied for about 23,500 titles in the state over the previous 12 months.

According to WFLA, Carvana this year settled with Florida regulators previous complaints about undelivered securities. The company agreed to pay $ 500 each to 12 customers who had waited between three and eight months to receive titles on the vehicles they had purchased from Carvana.

In August, the company had its dealership license suspended in Wake County, North Carolina for 180 days for violating state dealer licensing laws, including failing to deliver title work. in right time. Carvana is prohibited from selling vehicles at its Raleigh site until the end of January, and the company has been required to conduct a review of its sales across North Carolina to ensure it was meeting title and registration requirements.

Carvana is the nation’s second-largest used vehicle retailer in 2020, with 244,111 used vehicles sold that year, according to the Automotive News Research & Data Center.

In November, the company reported third-quarter retail sales of 111,949 vehicles, up 74% from the previous year.

Actions in Carvana fell 7.86 percent to $ 205.61 as the market closed Monday.

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