North Carolina has suspended online used-car retailer Carvana Co. from selling cars in the Raleigh area until January next year, after a state investigation determined that it failed to deliver titles to the motor vehicle department and sold cars without state inspections.
The state motor vehicles department has revoked Carvana’s dealer license for its Wake County location until Jan. 29, The state attorney general’s office said Wednesday. The Tempe, Ariz.-based company also has agreed to pay a civil penalty of $500 and an administrative hearing fee of $200, according to court documents.
The penalty was part of an agreement Carvana reached with state officials, following a probe by the North Carolina’s Division of Motor Vehicles.
A spokeswoman for Carvana confirmed the details of the agreement and suspension, but didn’t have an immediate comment.
Carvana—a startup founded in 2012 with the mission of selling cars exclusively online—had a strong run during the pandemic as car buyers, stuck at home due to virus concerns, have embraced its direct-delivery model. Its stock has popped within the last year, pushing its valuation to $64 billion, higher than Ford Motor Co . , according to FactSet.
