Shopping for a pre-owned vehicle is something most Americans have experienced. The idea of an easy, online process is very appealing. Some new entries in the used car marketplace try to entice customers with a smooth, one-stop-shop approach to used car buying. However, it may not be as easy as it appears when shopping with an online car retailer. There is more required to purchasing a vehicle than simply hitting the delivery button, and some online dealers are scrambling to reconcile some operational troubles.
Carvana
With Carvana, consumers can research and purchase a used car using the Carvana website. Shoppers complete the entire car-buying process online. This service is appealing because buying a used car can be frustrating. The rapid success of a company like Carvana is not surprising when over 70% of all vehicles sold in the United States each year are used cars.
Carvana markets itself as a used-car hub connecting buyers to thousands of pre-owned vehicles in their area and operating a one-stop-shop online operation. Services include finding cars, Kelly Blue Book valuations, Carfax histories, and a seven-day (400 mile) return policy. They also offer loans through Carvana, car warranties, and more.
Carvana Lawsuits Allege That Carvana Sold Cars Without Title
Several reports from across the country allege Carvana sold untitled cars to customers. Some customers have reported purchasing cars from the online retailer and never receiving the title for the vehicle. Others report receiving a title from Carvana only after months and months of delays. For example, in North Carolina, Carvana was banned from selling cars in the Raleigh area after discovering the company did not give titles for vehicles to the motor vehicle department. In addition, North Carolina found Carvana sold vehicles without a state inspection.
North Carolina is not the only state where Carvana is accused of selling untitled vehicles. In Denver, Colorado, Carvana faces an arbitration lawsuit following the used car retailer selling a stolen car to a client.
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Class-Action Lawsuits & Complaints in Multiple States
There is at least one class-action lawsuit against Carvana and many complaints in multiple states. A class-action lawsuit aims to help a group of individuals who suffered similar financial harm due to the actions of a corporation. A small group or individual commonly files these lawsuits on behalf of anyone wronged in the same way, thus making up the “class” of wronged individuals. If you qualify to be part of the class in the class-action lawsuit, you may be able to receive part of any settlement reached as the outcome of the case.
A class-action lawsuit against Carvana was filed in Pennsylvania by two plaintiffs. It proposes to cover anyone in the United States east of the Mississippi River who has contractual dealings with Carvana to purchase vehicles within a specified time before the lawsuit.
In Florida, multiple administrative complaints against Carvana have been filed. In addition, they face similar complaints involving registrations, tags, and titles in Texas, Michigan, California, and North Carolina.
Consumers Beware
Some online used car dealers present themselves as a company with an easy way to purchase a used car. However, consumers need to be wary. Multiple companies have experienced rapid growth in recent years but face serious allegations from both customers and State governments.
Consult with a consumer protection lawyer today if you’ve had issues with Carvana or other online used car dealers. Do not feel helpless against big, powerful, or trendy companies, and they can be just as culpable and held to account equally as any other business.
Further Reading:
Ernie Garcia II Has Made Billions Off Carvana and Used-Car Business
Carvana allegedly leaving car buyers on the hook after selling cars without a title