Multiple States Investigating Carvana’s Business Practices

These days, with the way technology, is evolving, it’s getting easier and easier to access just about everything in a hurry. With companies like Amazon bringing just about any good that one could want or need to their doorstep within a matter of a day or less, it seems to have other companies are catching on and trying to bring the same convenience.

One of the things that Amazon doesn’t sell just yet is cars. In order to address that gap in the market, companies like Carvana make their money by making that process as easy as possible. Essentially, the concept is that customers don’t even have to leave their homes and can basically just buy a car from a vending machine that is then transported to their front door. It doesn’t get much easier than that, right?

In the future, we could definitely see processes like this taking over the used car buying experience. However, early in the timeline, it seems as if Carvana is running into a couple of bottlenecks in its model.

Several states have had issues with the company as Carvana has been said to have been struggling with delivering vehicle titles to the buyers of its cars in a timely fashion. One example of this happening was captured in a news report by FOX4 News Kansas City as they caught up with one Carvana customer who purchased a Subaru Outback and struggled to get his title. In fact, the buyer says that Carvana asked him to go to the DMV to try to register the car with the title application, something that didn’t work at all.

The news outlet reported that the owner driving around without the title is illegal in his state. Carvana’s solution was to send him temporary tag after temporary tag from different states which was also said to be illegal.

This isn’t necessarily anything new as Florida was threatening to ban Carvana from the state saying that the company “has been failing to comply with the provisions of Florida law that require a dealer to apply for a title within 30 days of the sale of the vehicle.”

Carvana was also banned from selling in Illinois for a period of time before being reinstated after making sure that their transactions lived up to the state’s compliance standards.

Down in the video below, we get the rundown of what exactly has been going on. I think a lot of people would agree that the concept behind Carvana is a pretty cool idea. Hopefully, this is nothing more than some growing pains and the company will be able to produce more happy customers in the future.