Carvana Co. can continue selling used cars in Michigan, albeit with some new restrictions.
State regulators challenged the online used-vehicle retailer's dealer license in early October. At the time, the Michigan Department of State said it suspended Carvana's license for infractions it asserted were violations of the Michigan Vehicle Code — failing to make application for vehicle titles and registrations within 15 days of delivery and failing to maintain odometer records, for example.
As we previously reported, Carvana filed to reverse that license loss — a request later rejected by the court it was filed in.
The dispute was ultimately resolved last week when Carvana agreed to a plea deal that entailed surrendering the dealer license of its lone Michigan vending machine-like tower in Novi, a suburb of Detroit.
Carvana is free to sell its vehicles to Michigan residents via its website, though those cars and trucks will have to be retitled to Michigan, and it will be left up to buyers to do that work. Carvana can use the Novi tower as a location for consumers to pick up already-purchased vehicles.
A key takeaway: The agreement between Carvana and the Michigan Department of State also bars the retailer from reapplying for a new dealer license in the state for three years. That applies to the Novi tower and it also affects any new towers Carvana might have planned to open in Michigan within three years.
Readers, you should know we will be keeping an eye out for developments in another regulatory challenge against Carvana — this time in Illinois — that could emerge before the end of January. Check back here for updates.
