Carvana Is Banned From Selling Cars in North Carolina Until 2022
Serena Aburahma
· 3 min read
Rather than going to a traditional dealership, Carvana customers can complete an entire purchase online and have the vehicle delivered to them. However, Carvana's service is not perfect, and they are facing issues in
North Carolina
.According to the
Wall Street Journal
, Carvana has been suspended from selling cars in Raleigh, North Carolina. The suspension was the result of an agreement between the online car dealership and the North Carolina Department of Vehicles.
Why is Carvana being suspended from selling cars?
The North Carolina DMV found that Carvana broke state laws for properly selling a vehicle. Reports from the case highlight three primary issues that Carvana had at their Raleigh, North Carolina location.
The primary concerns with Carvana involved failures to deliver titles for newly purchased vehicles to the DMV. Investigations also found that Carvana sold vehicles in Raleigh that were not given state inspections.
In one instance, Carvana even sold a vehicle with out-of-state plates.
Outside of violating state laws, the complaints against Carvana show that the company has also failed to meet its own guarantees. Carvana claims that the vehicles they sell have gone through an inspection process, yet the cars sold in Raleigh demonstrate that this is not always the case.
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How will the suspension affect Carvana’s car sales?
MORE: How to Safely Buy a Used Car
According to
Spectrum News
, Carvana is suspended from selling cars from its Wake County location for 180 days. The suspension began on August 2 and will continue until January 2022. Even though this was a statewide investigation, Carvana's issues were only found in Raleigh. North Carolinians interested in purchasing a car from Carvana can still do so elsewhere in the state, including Greensboro, Concord, and Charlotte.
While this suspension is a setback for Carvana, it is unlikely to impact the company long-term. A spokesperson from Carvana expressed appreciation for how smoothly the terms of the suspension were reached.
Once the 180 days have passed, Caravan will be able to sell cars in Raleigh, once again.
The company’s growing pains
MORE: The Car You Bought During the Pandemic Could Be Worth Reselling
Carvana was founded in 2012 and has gained significant attention in recent years thanks in part to prominent advertising campaigns. The company was already on the rise, and then they did particularly well during the Coronavirus pandemic as car sales increased across the U.S.
Car buyers wanted to purchase vehicles while maintaining social distancing, and Carvana allowed them to do just that.
However, the issues with Carvana in Raleigh have demonstrated some issues that consumers have had with the company overall. Most consumers have had positive experiences with the retailer, and issues like Carvana not sending titles to the DMV are rare.
Some negative reviews have come in, though.
One common issue noted with Carvana concerns the online car buying process in general. Not being able to see a vehicle in person or test-drive it could result in a driver not being satisfied with their purchase.
Carvana is building popularity in the auto industry. Right now, though, they are suspended from selling cars in Raleigh, North Carolina. The suspension may be a negative mark on their reputation, but the company continues to grow through its efficient and innovative service.
Whether you buy a vehicle from Carvana or a traditional dealership, you will need insurance to cover your driving.
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