Michigan Carvana store agrees to surrender dealer license

Carvana Co. stores in Michigan have agreed to waive their dealer license in lieu of further administrative action by state regulators. State regulators suspended his license in October for ownership, registration, and odometer issues that were found to violate Michigan vehicle laws.

Carvana agreed Tuesday to revoke its dealership license for the offending location in the Detroit suburb of Novi, according to a closing agreement document provided by the Michigan State Department on Wednesday. It was signed by Benson’s attorney and Paul Blow, Calvana’s general counsel.

“In a plea bargain signed with our department, a dealer in Calvana, Novi had his dealer’s license revoked and reapplied for a new license for three years for violating the law,” State Department spokesman Jake Rorrow said. statement provided to car news.

Michigan residents can purchase vehicles through Carvana’s website, but “must change the title of the vehicle purchased to Michigan,” Rollow said in a statement.

Under the deal, Carvana will be able to continue delivering vehicles purchased through its website to Michigan residents at its Michigan store.

Alan Hoffman, Carvana’s head of external affairs, said in a statement, “This settlement agreement is consistent with what we have been doing since 2014 with our innovative and consumer-friendly e-commerce business model. , enhances Carvana’s ability to continue to sell and serve automobiles to Michigan residents.”To car news.

Due to the terms of the contract, Carvana will not be able to apply for a dealer license with the division for the next three years. According to the deal, the retailer will also pay a $10,000 penalty to cover the department’s investigation costs.

In a statement, Rollow said it was “standard practice” for the Justice Department to save taxpayers money by offering plea bargains to retailers who violated the law and were likely to have their licenses revoked. It is written that

An administrative hearing between Carvana and the department scheduled for Wednesday has been cancelled.