Novi, Michigan, October 24, 2025
News Summary
Carvana Co. has had its dealership license revoked for three years in Michigan due to violations of the Michigan Vehicle Code, including issues with timely delivery of vehicle titles. The Secretary of State’s investigation was triggered by numerous customer complaints, leading to the discovery of multiple violations by Carvana. Despite the revocation, the company can still operate in Michigan through out-of-state e-commerce licenses. Customers will need to retitle vehicles purchased from Carvana after delivery.
Novi, Michigan – Carvana Co. has had its dealership license revoked for three years by the Michigan Secretary of State due to violations of the Michigan Vehicle Code. The revocation stems from allegations of “imminent harm to the public” linked to timely delivery of vehicle titles, raising serious concerns about the company’s operational practices in the state.
The Secretary of State’s investigation was initiated following multiple customer complaints regarding Carvana’s handling of vehicle titles and registrations. The company admitted to several violations, which included breaching a probation agreement, improper use of temporary registrations, and failing to provide necessary records in a timely manner. Furthermore, Carvana did not submit applications for buyers’ title and registration within the required 15-day period and neglected to obtain odometer disclosure records.
In addition to the revocation of its dealership license, Carvana is required to pay a penalty of $10,000 to cover the costs of the investigation. However, the company will still be able to sell and deliver vehicles in Michigan through its out-of-state e-commerce licenses. Customers in Michigan must retitle the vehicles they purchase from Carvana in-state after receiving them.
The affected dealership is located near Novi Road by Interstate 96. The state’s decision aims to enforce compliance with the laws governing car dealerships, prioritizing consumer protection in automotive transactions.
The scrutiny surrounding Carvana has intensified due to concerns raised by notable short-seller Jim Chanos. He has linked the company’s practices to risks associated with the subprime auto market, particularly following the failures of lenders like Tricolor Holdings. Chanos questions how Carvana seems to navigate its financial challenges in this space without similar repercussions.
Despite the controversies, Carvana’s representative, Alan Hoffman, stated that the settlement allows the company to continue its operations in Michigan, which it has been doing since 2014. This highlights the ongoing balance between regulatory compliance and business operations for Carvana as it navigates this challenging landscape.
Jake Rollow, the chief external affairs officer of the Secretary of State, reaffirmed the state’s commitment to enforcing the law among car dealerships to protect consumers. The actions taken against Carvana serve as a reminder of the importance of compliance with vehicular regulations.
Background on Carvana’s Operations
Carvana has made a name for itself in the online vehicle sales market, offering a unique model that allows customers to purchase cars from home without traditional dealership visits. Founded in 2012, the company has grown rapidly, reaching a significant presence across several states. However, as its operations expand, regulatory challenges like those faced in Michigan highlight potential pitfalls in this innovative business model.
Implications for Consumers
This recent development may impact consumer trust in Carvana’s business practices while also highlighting the importance of understanding the regulations governing vehicle purchases. Customers should remain vigilant about the title and registration processes when using online vehicle sales platforms to ensure compliance and avoid potential legal issues.
FAQs
Why was Carvana’s dealership license revoked in Michigan?
Carvana’s dealership license was revoked for three years due to violations of the Michigan Vehicle Code, including allegations of “imminent harm to the public” linked to the timely delivery of vehicle titles.
What specific violations did Carvana admit to?
Carvana admitted to multiple violations, including violating a probation agreement, improper use of temporary registrations, failure to provide records in a timely manner, not submitting applications for buyers’ title and registration within 15 days, and not obtaining odometer disclosure records.
Can Carvana still operate in Michigan after the revocation?
Despite the revocation, Carvana can still sell and deliver vehicles in Michigan through its out-of-state e-commerce licenses.
Key Features of Carvana’s Situation
| Feature | Details |
|---|---|
| Location of Revoked Dealership | Novi, Michigan |
| Duration of License Revocation | Three years |
| Penalty Amount | $10,000 |
| Reasons for Revocation | Multiple violations of the Michigan Vehicle Code |
| Impact on Consumers | Must retitle cars in-state after purchase |
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Detroit Free Press: Carvana Michigan Dealer License Settlement
- C & G News: Carvana Surrenders Michigan License for 3 Years
- Repairer Driven News: Michigan Suspends Carvana’s Dealer License
- Barron’s: Carvana Stock Settlement in Michigan
- Google Search: Carvana Novi Michigan
Author: STAFF HERE NOVI WRITER
The NOVI STAFF WRITER represents the experienced team at HERENovi.com, your go-to source for actionable local news and information in Novi, Oakland County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Motor City Comic Con, Michigan State Fair, and Novi Home and Garden Show. Our coverage extends to key organizations like the Novi Chamber of Commerce and Novi Community Foundation, plus leading businesses in automotive, technology, and manufacturing that power the local economy such as Gentherm, Stoneridge, and Daifuku North America. As part of the broader HERE network, including HEREDetroitMI.com, HEREGrandRapids.com, HERENorthville.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
