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.