Transportation

Carvana sues Michigan for revoking its dealership license

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October 17, 2022

Carvana, an e-commerce platform for buying and selling used cars online that offers a car vending machine, has sought a temporary restraining order against the state of Michigan after its Secretary of State's office revoked the company's license to sell cars over customer complaints over car titles, according to a Detroit News report.

Carvana said it filed the motion in the state Court of Claims to halt what it called an "illegal and irresponsible attempt to shut down a growing Michigan business with tens of thousands of customers over what amounts to technical paperwork violations involving title and transfer issues."

The department last week said it suspended the company's Novi dealership for "imminent harm to the public," citing violations of the state's vehicle code based on complaints that the dealership did not properly handle title transfers.