Carvana Hit with Class Action Over Alleged ‘Months and Months’ of Delays in Transferring Vehicle Titles

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A proposed class action alleges online used car dealer Carvana has unlawfully delayed permanently transferring certain cars’ titles for “months and months,” despite having a contractual obligation to timely do so. 

The 14-page lawsuit claims that Carvana’s title transfer delays have prevented consumers from being able to legally drive the cars they purchased given they cannot timely register the vehicles or get adequate insurance coverage. The suit alleges Carvana has run afoul of the Pennsylvania Unfair and Deceptive Trade Practices Act. 

Overall, the complaint alleges Carvana has engaged in the practice of routinely issuing to customers awaiting the transfer of their permanent registration multiple temporary license tags in violation of state laws. 

According to the lawsuit, one of the two plaintiffs, a Philadelphia resident, purchased a used 2017 Kia Sportage from Carvana around December 29, 2020. Per the case, Carvana delivered the plaintiff’s vehicle to his residence with an Arizona temporary license tag, and at the time of delivery the consumer signed the sales and delivery documents in paper and electronic form, the suit says. 

The lawsuit claims that despite repeating promises in six emails to the plaintiff from February through October 2021, Carvana nevertheless failed to provide the driver with his permanent registration as it was contractually required to do. Instead, Carvana, “without the legal right or authorization to do so,” provided the plaintiff with six temporary license tags, from the date of the sale through the most recently issued tag, which expired on October 23, from the Arizona Department of Transportation, the Tennessee Department of Revenue and the Commonwealth of Pennsylvania, according to the case. 

The case charges that Carvana concealed from the plaintiff that it was not authorized by either Tennessee or Arizona to issue these temporary tags. As of the date the lawsuit was filed, Carvana “still has not provided Plaintiff permanent registration as it was required to do” pursuant to its contractual agreement with the consumer, the lawsuit claims. 

According to the suit, the second plaintiff, a Palmer Township, Pennsylvania resident, is in a similar position. Despite purchasing a used 2020 Toyota RAV4 around June 3, 2021, Carvana failed to furnish the individual’s permanent registration after his temporary Arizona license tag expired, the lawsuit alleges. The case similarly claims that Carvana instead, in October and without the legal right or authorization to do so, provided the driver with a new temporary tag from Tennessee’s Department of Motor Vehicles.

“When it provided the improper Tennessee registration, Carvana concealed from the Plaintiff that it was not authorized by the State of Tennessee to do so,” the suit claims, alleging that the plaintiff, to date, still has not received permanent registration for the vehicle.

The case looks to cover all persons in the United States east of the Mississippi River who entered into contracts with Carvana to buy vehicles in the two years before the commencement of this lawsuit, and to whom Carvana agreed to provide car registration services with non-temporary vehicle registrations in the state of their residence. 

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