Carvana dealership in Novi suspended for several violations

NOVI, Mich. (FOX 2) - A local car dealership in Southeast Michigan has racked up a slew of violations, leading to the car shop's license being suspended, the Michigan Secretary of State said. 

The state agency said the Carvana outlet in Novi failed to maintain proper vehicle records, improperly issuing temporary registrations, violating terms of probation agreement over a hundred times, and committing other "fraudulent acts" when selling vehicles.

According to MDOS, Carvana dealership employees admitted to destroying title applications and other documents pertaining to the sale of three vehicles that were sold to customers. 

The agency said the violations created an "imminent threat" to public health and required emergency action. A release from the state said the dealership is owned by Paul Breaux.

Issues at the dealership began in February 2021 when regulatory staff noted multiple reports of non-compliance from the Carvana store. A preliminary conference in March 2021 was held between the state and employees of Carvana to address the violations. The dealership then entered an 18-month probation agreement with a $2,500 administrative fine and admission of several code violations. 

One stipulation included the employees at Carvana that handle the paperwork had to attend a dealer training program. 

A second meeting with Carvana employees were held in January 2022 after the terms of the probation agreement were violated. More fines and another probation extension were added. 

RELATED: Michigan city named best place in America for families, Detroit suburb makes top 10

The issues didn't stop there however and MDOS received several no-title complaints from consumers. The department now wants to revoke the dealership's license entirely.

In a statement sent to FOX 2, Carvana rejected the department's allegations "as baseless and reckless."

"We strongly disagree with the state’s heavy-handed and abrupt effort to shut down a growing Michigan business with tens of thousands of customers over what amounts to technical, paperwork violations involving title and transfer issues.

"We have already corrected 99 percent of the technical paperwork violations cited in the state’s report and welcome the opportunity to address the state’s ongoing concerns through constructive dialogue, changes to outdated regulations through legislation, or in the courts."

Consumers who have a complaint against Carvana, or who have purchased a vehicle from that dealer and have had problems obtaining the title, are encouraged to call the Office of Investigative Services automotive complaint line at 517-335-1410.

The dealership is located at 26890 Adell Center Drive.