We know car buying can be a headache, but it’s been a nightmare for some customers dealing with one company. KPRC 2 Investigates is looking into a used car dealer selling cars customers can’t drive. The problem - they can’t get the vehicles registered because the dealer can’t provide the title or the permanent license plate.
Carvana car buying complaints
Carvana is still fairly new to the car dealer industry. The company’s only been in Texas since 2016. They promise no-haggle pricing and convenience and they’ll deliver your car right to your driveway. But over the past year and a half some customers say their car buying experience with Carvana has been nothing but a hassle and headache.
22-year-old Peyton Harden is happy with this 2018 Hyundai Elantra she purchased from Carvana in August of 2020, she just can’t drive it.
“She’s already been told once by a police officer not to be driving the car. It needed to be tagged. She had it for over a year,” said mom Jessica Boom.
In Texas, car dealers are required to submit a title and registration application to the county tax office within 30 to 45 days of the date of sale. But some 455 days after she purchased the vehicle Peyton’s mom says Carvana still can’t get the title to this Elantra.
“They can’t issue any more temporary tags. They can’t. They can’t tag it. What are we doing? Why aren’t you fixing this?” said Boom.
Cars being sold without tags, expired tags
When the first set of temporary tags expired Peyton called Carvana and they sent a second set, then a third, then a fourth. The Texas Department of Motor Vehicles tells KPRC 2 investigates licensed dealers in Texas can only provide buyers with one paper plate from Texas.
It’s currently investigating similar complaints from customers across Texas. But this is a bigger problem. Carvana has faced legal action and fines for failing to produce titles and selling vehicles without a license in California, North Carolina, Florida and Michigan.
No one from Carvana returned. KPRC 2 Investigates repeated phone calls and emails but in an August phone call with investors Carvana’s CEO said the increased demand combined with a manpower issue caused some of the delays.
“I don’t care at this point,” said Boom. “What’s wrong? This is not my problem. My problem is is my daughter needs a car that is she can drive that’s just as reliable as the one sitting in the lot.”
After more than a year of calling and filing a complaint with the state Peyton’s mom says a Carvana rep told her the company will unwind the loan, take the Elantra back and give Peyton a comparable vehicle. The money she has paid towards the Elantra will be applied to her new loan.
Car buying issues with Vroom
You may remember, earlier this year we talked with several customers who were having similar issues with the online car buying site Vroom. Common complaints include vehicles misrepresented in photos, customers not receiving necessary paperwork to get their car registered, delayed deliveries, and communication problems - like sending customers in circles.
If this happens to you with Vroom, Carvana or any other car dealer, you should file a complaint with the Texas DMV.
Q & A with Texas DMV regarding temporary plates
Here are some common questions and helpful answers from the Texas DMV if you have an issue with online car buying.
Q: How long does the law give dealers in Texas to get the real plates for the customer?
A: Dealers are required to submit a buyer’s title and registration application to the county tax office within 30 days of the date of sale, or 45 days of the date of sale if it is a dealer-financed sale.
Q: How many temporary plates are they allowed to issue on one vehicle?
A: A dealer may issue one buyer’s temporary tag for one VIN/buyer. If there is an issue with title transfer following the expiration of the buyer’s tag, the dealer should obtain a 30-day permit from the county tax office for the buyer.
Q: Is it legal to issue temporary plates from another state outside of where the customer lives?
A: If you purchase from a licensed Texas dealer, the dealer must provide one Texas buyer’s tag.
4. Ultimately, who is responsible when the new car owner can not get the permanent license plate? The women we interviewed is afraid to drive her vehicle because she has been pulled over once and given a warning for driving with temporary plates. (She told the officer she bought car in August 2020).
We would need to investigate these specific incidents in order to determine if any violations occurred. Buyers who encounter a problem with a licensed Texas dealer should file a dealer complaint with the Texas Department of Motor Vehicles here:
Q: What can these customers do?
A: Buyers should file a complaint by clicking here. Consumers who have not received their plates may also ask the dealer to obtain a 30-day permit for them. Or, the consumer may obtain a 30-day permit directly from their county tax office or TxDMV Regional Service Center.
Q: Does the TxDMV have complaints/issues/penalties against Carvana right now?
A: Yes, TxDMV has open investigations involving Carvana. We are not able to discuss details of open cases. You can view a summary of a dealer’s closed case history (this does not include active investigations) via our online dealer license database. Enter “Carvana” in the Business Name field and the click on a license number (for example, P137592) to see a summary of case history.