Drivers Accusing Carvana in New Lawsuit Of Selling Unusable Cars Get Green Light From Judge

A car is a major investment for any household, and being able to trust your dealer is a pivotal part of the buying process. So when dozens of Carvana customers had serious issues with registering or getting title information for their new rides, they understandably took action by filing a class action Carvana lawsuit. 

Now, a judge has allowed that Baltimore-based lawsuit to proceed, denying Carvana’s attempts to have it dismissed or moved to arbitration.

The core of the case

Baltimore local Shawn Thorn, one of the Carvana lawsuit customers involved in the proposed class action, said he was taking part because “I want to be able to have transportation I don’t have to look over my shoulder with,” WBAL-TV11 reported.

Thorn said stopped making payments on his loan after Carvana kept sending him temporary tags from other states that had expired, which he had received citations from the police about. “It was more principle than anything. I paid for this. I’m paying for this and I can’t use it at all. It didn’t make sense to me,” he said.

Attorney Phillip Robinson, who is representing consumers from across the country who did business with Carvana, said the case is about “consumers who bought a car from who they thought was a legitimate dealership and it turned out they couldn’t get a title and registration and they couldn’t drive their cars.”

What is Carvana?

Carvana was founded in 2012 as an online-only, used-car retailer that buys and sells cars, takes trade-ins, and finances purchases. It quickly became the country’s fastest used car dealer. 

Based in Tempe, Arizona, Carvana is known for its multi-story glass tower car vending machines, which are scattered across the U.S.

Laws protect used car buyers

While used car buyers aren’t assured the same protections as buyers of new cars, state and federal laws do protect them — many of which are known as Lemon Laws. The Maryland Attorney General has even released a tip sheet to help used car buyers navigate the process, which is relevant to buyers across the country. 

Tips include include:

• Read publications such as Consumer Reports Annual Car Guide to narrow down your interests
• Shop wisely because there is no “cooling off” period after a purchase 
• Don’t buy a car from someone who won’t let you get an outside professional opinion
• Take the car for a test drive
• Do not buy a car without first examining the title
• Understand warranties and service contracts

Carvana is facing other lawsuits about the same issue

Carvana has also faced regulatory and legal action in a number of other states including Arizona, Illinois, California, Pennsylvania, Texas, Michigan, North Carolina, and Florida, WMAR 2 reported. A Pennsylvania proposed class action lawsuit, which accuses the company of violating the state’s Unfair and Deceptive Trade Practices Act, has very similar allegations to the lawsuit filed in Baltimore. 

According to Car and Driver, the registration and title issues aren’t the only issues Carvana customers face, with people also reporting issues with delivery, timing, and location. The publication also advises drivers to do their homework and take the car to be checked in the seven-day trial period in case anything has been missed during Carvana’s inspection.