State suspends Novi car dealer Carvana license for ‘imminent harm’ to public

The Michigan Department of State has suspended the license of the Carvana dealership in Novi for “imminent harm to the public,” a claim Carvana calls “baseless.”

In a media release late last week, the state said Carvana LLC, owned by Paul Breaux and located off of Novi Road near I-96, committed several alleged violations of the Michigan Vehicle Code. The alleged violations were discovered during an investigation by the state regulatory staff of multiple complaints from consumers about title problems with their vehicles.

A phone receptionist for the Carvana store told the Free Press she had no way to contact Breaux and directed the Free Press to Carvana’s media relations. In an email, Carvana spokesperson Kristin Thwaites said, “We reject the Michigan Secretary of State’s allegations as baseless and reckless and 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.”

State suspends Novi car dealer Carvana license for ‘imminent harm’ to public

Thwaites said Carvana has corrected “99% 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report and welcome the opportunity to address the state’s ongoing concerns through constructive dialogue, changes to outdated regulations through legislation, or in the courts.”

Probation violation

The state said the dealership’s problems began in February 2021, when the state’s regulatory staff conducted a general compliance inspection, finding multiple notices of noncompliance with the state vehicle code. The state and Carvana representatives had a preliminary conference in March 2021 to address the violations.

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