Carvana allegedly leaving car buyers on the hook after selling cars without title
Carvana has faced the issue across multiple states
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Carvana has allegedly sold cars to customers without selling them the title, resulting in a painful and confusing struggle for new car owners.
The online car seller has faced some legal troubles in recent years, with North Carolina temporarily banning the company from selling in the Raleigh area of North Carolina during the second half of 2021. The issue stems from the company selling cars but not providing the new owners with the car’s title.
"Carvana has pioneered online car buying by continuously delivering exceptional experiences, and we have bought and sold well over a million cars with customers while achieving an industry-leading Net Promoter Score (NPS) and a 4.7 out of five-star customer experience rating average," a Carvana spokesperson told FOX Business, not addressing the issue directly.
Vehicles sit inside the Carvana Co. car vending machine in Frisco, Texas, U.S., on Thursday, June 8, 2017. The U.S. automotive industry may be struggling with an array of concerns ranging from sliding used-car prices to rising inventories, but they d (Laura Buckman/Bloomberg via Getty Images / Getty Images)
"That said, we remain firmly committed to continuous improvement and will stay hard at work making the best car buying and shopping experience available even better."
A car’s title is the most important legal document as it actually provides ownership of the vehicle. Without a title, it is illegal to even drive the car or sell it.
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And the issue has arisen in a number of states: Derek Mundhenke in Kansas City, Missouri, bought a silver Subaru Outback from Carvana for a steal at $13,000. He paid for the car in full, but 11 months later still did not own the car since Carvana had failed to provide him with the title, FOX 4 KC reported.
"They just dance around the subject and never give me a good answer and they just give me false and misleading information about documents I could use (to register the car) instead of the title," Mundhenke said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVNA | CARVANA CO. | 248.38 | +3.88 | +1.59% |
| KMX | CARMAX INC. | 80.62 | +3.98 | +5.19% |
| AN | AUTONATION INC. | 170.05 | +5.20 | +3.15% |
Mundhenke claimed that Carvana told him to register the car at the DMV with the title application, not the actual title, which doesn’t work.
Carvana also faced a probation in Michigan, and Florida has threatened to pull the company’s license, too.
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Some users have taken to popular site Reddit to discuss their issues with the company, with one post noting that it required a call to the state DMV and attorney general’s office to finally acquire the car’s title.
"I think the secret is to basically beat the Carvana "support" team into submission until they are tired of dealing with you," the post read, with at least a dozen different posters also saying they suffered a similar issue.
Vehicles sit parked outside the Carvana Co. car vending machine in Frisco, Texas, U.S., on Thursday, June 8, 2017. The U.S. automotive industry may be struggling with an array of concerns ranging from sliding used-car prices to rising inventories, bu
One user in Colorado claimed to have waited 6 months to receive the title, and most states only allow for 30 days to complete the process. Another user claimed to have suffered the issue for a year and a half.
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"I can’t get insurance here without a plate number and I can’t get a plate number without title or current registration (which has been expired)," the other user wrote.
Carvana offered to buy back some cars in Florida instead of providing the title, leaving some customers furious.
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"I think the state needs to step in and do something to either enforce what the laws which are they need to provide you a title within 30 days or slap them with a pretty hefty fine to make sure this doesn’t happen," said Michael Johnston, who has been waiting more than four months for his title.