Carvana has suggested it is being targeted after the Michigan Department of State suspended its license earlier this month.
The used car retailer has launched a petition asking for support from consumers after its license was suspended for a host of alleged violations of the Michigan Vehicle Code. This includes failing to make application for title and registration within 15 days of delivery, committing fraudulent acts in connection with selling or otherwise dealing in vehicles where Carvana employees admitted to destroying title applications, failing to maintain odometer reads, and improperly issuing temporary registrations.
“We believe Carvana is being singled out in order to protect antiquated paperwork and legal requirements that we don’t feel are in the best interest of customers,” Carvana asserted in the email.
Read More: Michigan Deems Carvana An “Imminent Threat” To The Public, Suspends Their License To Sell Cars
Speaking with Auto News, a Carvana spokeswoman said the company has already received “thousands of signatures.” It is expected to mount a legal challenge to the suspension of its license in Michigan, just as it did in Illinois earlier this year.
“We continue to oppose the state’s heavy-handed and abrupt effort to shut down a growing Michigan business with tens of thousands of customers over what amounts to technical, paperwork violations involving title and transfer issues,” Carvana added in a statement. “We have already corrected 99 percent of the technical paperwork violations cited in the state’s report and welcome the opportunity to address the state’s ongoing concerns through constructive dialogue, changes to outdated regulations through legislation, or in the courts.”
The Michigan Department of State recently said that issues first arose at Carvana in February 2021 when multiple issues of non-compliance were found during an inspection. The used car retailer agreed to address these violations and entered into an 18-month probation agreement. However, this agreement is said to have been violated and was extended by six months.