Two Pennsylvania Carvana locations suspended from performing title, registration actions

Pennsylvania regulators have suspended two Carvana Co. locations in the state from performing motor vehicle titling and registration actions.

The online used-vehicle retailer's locations in Philadelphia and Bridgeville, a Pittsburgh suburb, have been placed on the Pennsylvania Department of Transportation's list of suspended issuing agents, meaning the Carvana outlets are temporarily blocked from handling titling and registration matters, though they can continue to sell vehicles. The department cited Carvana for administrative contract violations, according to a spokesman for the regulatory agency.

"Suspensions imposed on agents are the result of violation(s) found during routine audits or from an investigation into complaints regarding an agent," department spokesman Diego Sandino said in an email.

Those suspensions only affect a business' ability to perform title and registration transactions, not the ability for an establishment to otherwise operate as normal, Sandino said.

Carvana, of Tempe, Ariz., continues to sell vehicles in the state.

"Carvana's ability to sell cars and deliver industry-leading customer experiences is unaffected, and the administrative issuing agent permit in question only affects back end processing workflows while we work to resolve PennDOT's concerns," Carvana spokeswoman Veronica Cardenas said in an email to Automotive News.

The snarls in Pennsylvania are the latest challenge for the used-car retailer on the regulatory front and related to titling and registration issues. Carvana has been at the center of multiple regulatory actions by state and local licensing agencies, including those in Michigan and Illinois.

The addresses of Carvana's vending machine-like towers in the two cities were on an updated list of suspended agents as of Thursday. It's not clear exactly when the Carvana locations were placed on the department's list. The department uses the term "agents" to describe private businesses authorized to provide services, such as vehicle titling and registration to vehicle buyers and operators.

It was not immediately clear whether the department is requiring the Carvana locations to route titling and registration paperwork to a third party for processing.

In a statement to WPXI-TV Channel 11, an NBC affiliate in Pittsburgh, Cardenas said the Bridgeville location has been "compliant throughout the term of the suspension."

"PennDOT's unwillingness to meet for months makes us conclude that they suspended our agent privileges without understanding our operations and in violation of our due process rights," Cardenas told the TV station.

Carvana's Bridgeville location was cited for multiple infractions, including not issuing registration plates in consecutive order and failing to deliver proper documents, fees or taxes to regulators within 30 days of issuance, according to the list of suspended agents.

The department "indefinitely suspended" the agent services agreement for the Bridgeville location because it was not operating in compliance, Sandino told WPXI-TV.

Carvana's Philadelphia location has one citation for issuing motor vehicle registration cards or plates but then delivering documents that were incomplete, invalid or otherwise defective, according to the list. The end date for that suspension is Dec. 28.

Shares in Carvana traded at record lows earlier in the week but surged 32 percent to close at $9.99 on Thursday.