LOS ANGELES – Carvana, an online retailer selling cars using multi-story vending machines, will pay $850,000 to settle a civil lawsuit alleging the company was operating in California without a dealer’s or transporter’s license, Los Angeles County District Attorney George Gascón announced.
“Not having a business license is illegal, opens your company up to lawsuits and is unfair to the consumer,” Gascón said. “Business owners have the responsibility to obtain the licenses needed to operate their business legally.”
Under a judgment negotiated with the company, entered July 20 in the Los Angeles County Superior Court and signed by Judge Armen Tamzarian, Carvana was ordered to pay:
- $600,000 in civil penalties, $150,000 to each of the four district attorney’s offices;
- $200,000 in investigative costs, $50,000 to each district attorney’s office;
- $50,000 in restitution to be distributed to a nonprofit charitable organization to support work that advances the public interest.
The company, which did not admit wrongdoing, has been selling cars to California consumers since 2015 but did not obtain a dealer’s license until May 20, 2019. Beginning in September 2017, Carvana delivered numerous cars to California customers using its own delivery vehicles but had no transporter’s license. The judgment requires that Carvana obtain all necessary licenses to sell and transport cars in California.
Additionally, Carvana sold many cars between May 20, 2019 and June 30, 2019, without providing inspection reports to its customers prior to sale, as required by California law. The judgment requires that Carvana provide California buyers with copies of completed inspection reports prior to sale.
The Los Angeles District Attorney’s Consumer Protection Division led the investigation and prosecution in this case, which also involved the district attorney’s offices in San Diego, Santa Clara and Ventura counties.
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Sonia Tapia says
I purchased 2 cars from Carvana. May 2021 (300 Chrysler) and June 2021, (2013 Ford Edge). I’ve have nothing but problems with both cars. On November 2021 my Ford left me stranded several times. My car would not start. I took it in to a Sylver Rock approved location, come to find out that the “inspected”, good condition car that was advertice by Carvana had a batter with 20% of life. Mind you, I just purchase this car. I shouldn’t be putting out money for something that was sold to me as in “excelent” condition. Well, I had to pay $170 for a battery. Moving forward on 11/2021 I was driving my 300 Chrysler. Well, of all day, the day of the storm in Los Angeles, CA., (tues) I went to pick up my son from work (6:30a.m.) and on my way back home, my car just stopped. I THE MIDDLE OF TRAFFIC! Turns out my starter was no good, my suspensions are completely damaged. I had to have it towed to a shop. Well now I had to pay $2100 for the suspension alone. Long story short, I reached out to Carvana, to their finace company Bridgecrest, and noone is able to help me with these issue. I asked them if I can I have a one time curtacy of pushing this months payment (Dec., 2021) to the end of my contract so I can get my car(s) fixed and they refused. THIS IS UNBELIEVABLE!. I would like to know if you can help me. I’m a single mother, trying very very hard to make ends meet. At one point, I was looking at a “brighter light” then this happens. Please help me.