Car vending machine retailer Carvana can’t sell cars in Raleigh until 2022, DMV says
Carvana, the Arizona-based online used car retailer known for its unique automobile vending machine towers, won’t be able to sell cars in the Triangle until next year.
Following an investigation prompted by complaints, the North Carolina Division of Motor Vehicles revoked the company’s dealer’s license in Wake County until Jan. 29, 2022, News & Observer news partner ABC 11 reported.
The revocation is part of an agreement reached with the state attorney general’s office. An investigation found that Carvana failed to deliver titles to the DMV, sold cars without a state inspection, and issued out-of-state temporary tags and plates for vehicles sold to customers in North Carolina, according to ABC 11.
“We’re pleased that we were able to reach a solution with the North Carolina DMV,” Carvana spokesperson Amy O’Hara told The N&O. O’Hara did not provide additional information regarding the matter requested by email.
Under the agreement, the company can use its Raleigh location on Navaho Drive to process vehicle paperwork provided only from vehicles sold at its three other dealerships in Charlotte, Concord and Greensboro.
Carvana will pay a civil penalty of $500 and an administrative hearing fee of $200.
As an online retailer, it sells and buys vehicles in a contactless manner and can deliver sold cars to customers’ homes.
Carvana saw a notable increase in sales during the COVID-19 pandemic and attracted attention from investors and car buyers, The Wall Street Journal reported last year.
