They don't even need to ship them. They are an online dealer as much as a B&M. Officially "sell" them in Charlotte and have the buyer pick them up. But North Carolina has one of the most complicated DMV processes I have EVER dealt with. One of the big ones is that you can't finalize the paperwork until the CITY taxes come back. You have to go do that as a second step and then back as the third to finish. NC sucked. My guess that the "out of state" temp tag issue was when they sold out of state inventory.
My experience with carvana was all the “ boots on the ground “ employees were part time college students. That’s including the managers. So , no , I am not surprised their paperwork is a mess.
I had heard a story from a buddy whose next door neighbor bought a car from them. On loan the usual stuff. They sent him the title instead of the loan company. Somehow they screwed up the paperwork so hard it looks like he bought and owns the car outright for the money down and Carvana owes the money for the loan. Basically made 34k$.
@@PandorasFolly if he signed any paperwork for that loan, he will still be liable for the loan payments & the bank holding the loan will have a legal lean on that title.
They probably have a legal "out" that they can sell the cars online to out-of-state buyers. If not that, they'll send the cars to another one of their dealerships. I'm sure Carvana did the "math" about simply closing one location without diminishing their overall inventory. I'd like to see a bigger fine as real punishment.
I have to agree with you thinking. I bet they will just sell through the other locations, it will be just a bit on a inconvenience. Hit them up with a $100,000 fine or something that might sting a little.
They are still faking temp tags to buyers who don't know any better. If the dealer and buyer have nothing to do with Tennessee they still send Tennessee temp tags. They also are offering to just print out more TN temp tags when buyers complain the current one expire. Why TN? Because it doesn't require inspection.
I’ve seen they started to take a few shortcuts on reconditioning as well as other interesting issues. Unfortunately 30 years experience tell me so much more. Turn and burn cost lots more in the long run. You have to have a very very controlled consistent process through the sale process. If it breaks down everything does. Great story
I almost bought a tacoma from them like 2 years ago. I live in pa, n 4 wheel drive is a concern thus, i chose one with 4x4. It came with barely passable rear tires cooper discover at3's (not bad all terrain tires when theres tread) n new front tires (the absolute cheapest Chinese brand highway tires, it had 30k miles and was also a standard. Now ur paying the highest resale with carvana so i expect it to be up to snuff. Point is, the small stuff made me return n get my 2012 tacoma back. (Ironically it was worth 9k trade in and now worth 11500 trade in with more miles however the cost of other vehicles has risen so im just driving it for now and im fine with it). Anyway the tires being mismatched on a 4 wheel drive truck of which they told me is fine and they could care less even though they were diff tread and diff tire types and diff size because of the variations of tire brand and type. All of which if ur truck is 20 years old n its a farm truck is okay not when ur paying 30k for a fn truck it is not okay. It was missing the driver side floor mat because the idiot driver left them in the bed while transporting it, so it flew out and probably hit a car who knows. It also had a vibration in the drivetrain in 3rd gear at a certain speed which i found odd. It shifted very strangely as if there was something wrong with the transmission. It was just off and couldn't pin point what exactly it was. Didnt have time to get it fully inspected (which at toyota is about 125 or so). I couldnt get in, in time. Anyway point is, they eventually said theyd put new tires on the rear when i said i was giving it back, and I said im good, im not buying it now. I just dont get how poor their buisness model is when it comes to an inspection i dont trust any inspection process let slone theirs. Prob just scummy 3rd party mechanics robbing them blind so it may not even be carvana's fault all the time per se. I was so happy when i got my truck back though i remember that.
@@todtalk3912 if it was a late model, might have been the accumulator in the hydraulic clutch circuit you didn’t like. I had a 2019 Taco stick. After I got my wife a 2020 4Runner, I liked it so much I got myself one. The 4Runners are just built better, better materials, etc. the 3.5 sucks where I live off the line (6700 ft) the 4.0 has good low end.
I wonder if this was strictly a financial decision by Caravana to not take on the heavy cost of litigation…..especially if they thought they had a weak or un winnable case. They could pay the $750 (chump change), ship their cars to another location so they are not sitting on inventory and still earn enough money doing paperwork for and referring potential customers to the other dealerships. With that set up, the six month deal doesn’t sound all that bad. Now if they could not get rid of inventory through sister dealers or auction then it might be a more costly decision. Interesting nonetheless.
Not nearly as costly i they can't shift the cars through their other locations as it would be for a new car dealer, though. New cars on the lot are usually there on financing (there are some dealers who own them outright, but that's rare) and the charge goes as of the first of the month. That's one of two reasons you can usually get a better deal close to the end of the month. (If they have to pay a $500 financing fee tomorrow but they can get the car off their hands if they discount you an extra $250 today, they're $250 up on where they would have been if they sold the car tomorrow, and there's no guarantee that car wouldn't still be sitting there in another month.) The other reason is the car makers give a big bonus to the dealership if they sell their monthly quota of cars, and his can make the deal profitable even if they sell a car at a loss if it puts them over their monthly quota. And the BEST time of the whole YEAR to buy a new car is between Christmas and New Years. The above issues are in play, AND people tend to not buy cars in December because of extra holiday spending on travel, food, gifts, etc.
I live in Va. I'm looking at a RAV4 from that location. They were gonna charge me 250 to ship it to Chantilly where I would buy it. I got a call on Sat where the salesman told me that the there is no longer a transfer fee. I guess this is the reason why.
It’s not really a shutdown if they can do paperwork for cars sold at other locations as you can go to the closed dealership, pick out a car and then ‘buy’ it from another dealership with a credit card transaction then get the paperwork done at the ‘closed’ dealership and drive away in your new to you car.
yeah we were clickbaited...notice vid title didn't mention just Carvana N. Carolina and.....not a shutdown as we all know the conotation with that word is "put down" or put out of business..as in entirely
My first thought was if you walk into that dealership within the next 6 months they "Just happen" to have a representative from one of the other 3 locations on hand who CAN sell you a car ... With the other issues, that sounds like something they would do to !
As I understand it that Carvana does most of their business online so stopping one dealership from selling cars seems like an easy fix, just move the cars to the other dealers and business as usual.
What I find curious is that, under this agreement, they are permitted to do the thing that got them in trouble: processing actions involving DMV paperwork! Huh?
Right?! I’m quite perplexed by that as well, but I guess that’s just good faith from the state so the people at that location can have steady employment would be my guess
I imagine they need to reprocess all the paperwork they fucked up. Kind of like your mom making you stop and start all over again when you're doing something the wrong way.
@@tissuepaper9962 I would imagine all the paper work steaming from those deals has already been corrected. As all those corrections needing to be made before people could properly license and register their vehicles is how this was all discovered in the first place
A friend of mine purchased a car from carvana, interesting that the story aligns with her experience. She purchased the car in Nevada, they couldn't get the registration over to the DMV and she initially had an Arizona department of transportation temporary tag. Then when that tag expired they sent her over a Georgia tag because they still hadn't figured out the title and registration a month and a half later. Right before the Georgia temp tag expired they were able to register the car and get the plates to her. I'm a used car dealer in Nevada and I don't understand how she never received a Nevada temporary tag not once. The ETS system Nevada uses wouldn't even allow for an out-of-state tag to be issued. Interesting, I wonder if they will be getting into more trouble soon
oh ha ha, NO way? Hysterical.. Never ever in all the years have I ever run into a Carvana ad here on the channels we watch, etc. I wonder if maybe ads are more geared towards which state I live in? oh well, who knows, who cares and I enjoyed seeing this
Times they are a changing ... I recently sold a car to CarMax. Somehow, their polished presentation didn’t feel at all like the usual sleazy used car dealer transaction. Maybe there’s hope for the business after all.
SOME OF MY CLIENTS WOULD BUY FROM OUT OF STATE, BRING IT INTO MY SHOP FOR AN INSPECTION AND BE REALLY SURPRISED A 10 YEAR OLD CAR WITH 135,000 MILES ON IT WASN'T LIKE NEW. GO FIGURE.
I recently sent you an email about my Carvana experience and a question. Also I’m in NC and they gave me Georgia tags and South Carolina paperwork. It was odd. They also messed up my DMV paperwork.
@@robertstoneking7916 no idea, I assume it was being held at their Georgia location and maybe that’s why. Didn’t come with an inspection for the state either
It means you bought a car that was located IN Georgia and they "processed" the sale from a SC dealer location. The dealer with inventory tagged it with GA plates to move it. (maybe driven from GA to SC) Look at the SC paperwork and see who the official dealer was.
A friend of mine has a car parked in his garage, for two months now, that he purchased from Carvana. No title, so he can't get it registered. He's applied to the state for a replacement title, but they have to research why Carvana didn't have the original. Could be stolen, could be a salvage title, could be anything. $8800's worth of car, not usable.
GOOGLE knows how to play the "Bad News" game much better than their advertisers do! The $700 fine by the State is chump change compared to what the Google Adwords is going to cost CARVANA Corporate! roflmao
Legally, no. But there are many who will "be slow" in handling the paperwork. (the street in front of my shop is regularly littered with untitled cars from auction. PD _hates_ dealing with those cars because there are no legal owners. There won't be any DMV / title records until they sell them to an end-user -- and because they came from out-of-state, they won't disclose the salvage nature of any of them.)
If they have 3 other locations in the state is that a penalty at all? Couldn’t they draw up paperwork at the location where they are not allowed to sell and have the customer “buy” the car from the other location (and pick it up at the no-sell location while they’re there)?
something says to me that the dealorships are a franchise deal so while the company header says "carvana" the other locations may not be run by the same "licensed" individual. it's highly possible that the parent company may not have total input into all dealings at each location.
My guess is yes and they'll work out payment through corporate. The other locations will sell the cars for them, send the money to corporate as normal but INCLUDE the profits they'd normally keep and then corporate will send the shut down location the profits for those sales in the form of a "cover expenses" check or whatever they come up with. No doubt they will not just let cars sit there for 6 months in this hot market.
@@Xander1Sheridan It's a big deal to the State Tax Commission in the state selling the car. A big enough deal that the dealership will pay an employee to drive the car across the state line to make delivery, and then catch the next bus back home.....
Sorry to hear you had a bad experience. My wife bought a car from them maybe 2 years ago. Was very wary about the whole idea, but turned out great. Price was at market value for a private purchase on Craigslist, but had a week to ensure she liked it, and I could look over the car thoroughly. No way can ever check a car over in that detail for a private sale.
@@juanaboynkin1196 now I can’t stop singing “the Camptown ladies sing this song, doo-dah doo-dah, the Camptown racetrack’s five miles long, Oh tha doo-dah day”😂
That is GOOGLE Advertising taking their slice out of the "Bad News" pie! A rather large and juicy slice I might add...... As the lyrics to the song MONEY proclaim, "Kick 'em while they're up, kick 'em while they're down....." GOOGLE has fine-honed that concept.
Sounds like they might be taking 6 months to train the new management at that location! Since they ship cars from location to location already, they should be able to work around this fairly easy.
@@TheGuruStud but they are, hopefully, going to have more competent management when they start selling cars again in 6 months. If they got severely punished and lost a ton of money you would complain that the action clearly benefits the big three hegemony and the DMV must be in their pockets. The public benefit comes from the change in management, not the money. If anything we need to give out fewer fines for everything so they stop being a line item on government budgets. A monetary incentive for the state to convict seems obviously wrong, doesn't it?
carvana isn't a dealership. You can't go to one and buy a car. It is all online. The only thing anyone could do at a carvana location is pick up a car they already bought and did all the paperwork for.
@@Xander1Sheridan So it could be that another party did the bad paperwork deeds and this Carvana forgot to step back when Corporate asked for a volunteer to take one for the team?
Not sure if anyone already mentioned this, but in NC our inspections are tied to our tags. Inspection must be complete before you can renew registration/tag. I suspect because they weren't getting the inspections, that is why they were putting out of state tags on the cars.
Got an explanation for out of state temp tags, since it close to a military base, might be military members getting tags for their out of state vehicles because they don't have to register in the state they are currently station at but their home state
@@TedSchoenling The shop that does mine is 100% by the book, as the NC DOT inspectors like to pop up and check the inspection stations out, at least they do where I am.
It's the substantial sales tax and property tax of N.C. that they were circumventing. And I'd bet they were using the out-of-state ruse as a closing tool. The buyers were aware what was going on, if not fully in on the scam. Inspections are trivial.
If it’s just one location they are going to just sell cars from a different location nearby because they are internet based and deliver the cars. I wonder if they can process new transactions at those locations?
Soooo they avoid paying local and state taxes... get caught.. and the state says ok, continue not paying us for another 6 months... Must be nice to live in a state that doesn't need income!
Well, to be fair, the state is supposed to use those taxes to provide things like security and education, but instead it lets Antifa roam free and rebrands racism as CRT so it can get kids to hate based on race. Given all of that, it sounds like the state is collecting pretty much what their services are worth.
This deal does smell a lot more like one cut by the State Tax Commission than the DMV..... Means that CARVANA also had to cough up the taxes they had collected in that state and they'll be watched for a few months.
TH-cam gets rich doing this when bad news descends on any brand. It'll be 30 days before CARVANA gets the massive advertising bill and puts a STOP on their TH-cam ads.....
Caravana will not lose much, maybe a few employees will. They will continue to recondition vehicles there and ship them to other locations. They somehow circumvented state laws by issuing out of state tempory tags, that is illegal. Temp tags reflect the location of where the vehicle was purchased, thus the vehicles having to pass NC State inspection.
@Joe Baldwin what is sounds like they did was "deliver" the car to you in NH. The paperwork was preprinted in Georgia. Then they either require you get the vehicle inspected and provide them with the results, or they inspect the vehicle themselves and include the inspection with the registration paperwork. If the location you pick it up from involves their license, the vehicle must be inspected first, then the temp tag and paperwork must be through them.
Temp Tags can be issued by either end of an interstate purchase. When I went from Texas to Florida to pick up a car I had a set of Texas Temp plates issued before I left. Because Florida charges a lot for theirs and requires you to register the vehicle totally in the state and THEN transfer. (so they can get the sales tax) With Texas tags in hand I was able to just pay sales tax in Texas and complete the sale as a Texas purchase. My sale was completed before I left Texas, legally. Alternately when I bought a motorcycle from a dealer in Oklahoma there was no cost to me for the dealer to temp tag it and Oklahoma did not require sales tax for an "out of state" sale. Some states have very anti-competitive laws.
@@redwolfexr the key in your situation is you handled the Texas tags, which is legit. If the dealer provides a temp tag, then it can only be from the State the sellers license is under. In most cases of cash purchases, out of state buyers can handle their own taxes. If financing is involved, in most cases the tags, taxes, registration fees are based on the buyers State. The selling dealer just needs the buyer to have an out of state license in both cases and the paperwork in the buyers out of state address.
@@redwolfexr it's not that simple. They have to abide by the individual State laws. So, as I said earlier, the paperwork and temp tag would have to reflect the state of the dealer license. In this discussion the issue is the vehicle was sold illegally because it was not inspected in the state of the dealerships license, which the paperwork was submitted under. In this case, they could not legally use a temporary tag from one of their other locations to circumvent the required state inspection before selling the vehicle.
Same EXACT thing happened to my son-n-law with carvana, this past summer! He just got the tag. They even emailed him another temporary tag to print and use.
When I was in the car buisiness we had out of state customers all the time usually on hard to find used cars , we would just sell them a transit tag that allows you to drive the car for 30 days and you would have to plate register and title the car in your home state
I’m a NC resident with a Raleigh carvana car purchased in February. My Georgia temp tag they provided just expired (it’s my 4th temp tag) and they say they cannot get me another temp tag since they lost their license. They claim my purchase is being rebuilt due to an incorrect address on my paperwork. Now I’m stuck in this loophole with a car I don’t own, an illegal expired temp tag from georgia and carvana is just giving me the run around. After hours on hold and telling me 3 times over the last week I’ll have a new temp tag any day, they tell me I should go to the NCDMV to get my temporary Georgia tag extended. Any advice?
I had a similar experience. Nine months, 5 temporary out of state tags, multiple calls. Contact the Better Business Bureau and file a complaint. I would also contact, in writing, the NCDMV, state Attorney General and the agency that just suspended them. Pressure seems to get results. There is no way your NCDMV is going to be able to extend a temporary Georgia tag. The reps at Carvana are friggin clueless.
I live in Vancouver, Wa (not canada) right across the river from Portland, Or. There are few motorcycle dealers here in vancouver. I went to Portland to buy my used motorcycle, and at the end of the transaction I had been issued a washington trip permit to use while waiting for my new license plates to arrive. I dont believe it to be very unusual to have out of state trip permits issued from a dealership.
The Carvana in Rockville MD issues temporary tags and registrations based on where the car comes from rather than the state of Maryland. Always wondered how they could sell a car in MD and issue temporary tags and papers from Georgia.
This could be a processing center. I purchased a vehicle and the prep center for upstate NY was Rochester where they do the inspection and apply the plates.
Avoiding taxes makes no sense because the buyers end up paying the taxes and interest on top of that tax as part of the contractual agreement between the buyer and seller. I think somebody just sucks at their job and it wasn't intentional foul play.
Or perhaps to "collect" higher taxes in one state and then paper the car to a state with cheaper taxes and pocket the difference? Are networks of used car dealerships smart enough to figure out how to do that? Methinks I know the answer to that question.....
Charlotte, NC location is apparently on “Probation” from 11/2020-11/2021 for issues as well. They state they will allow “administrative” duties only to be performed at the Raleigh location for their other locations in NC? Did the problem at the Raleigh location not have to due primarily with “administration” at this location + dropping the ball (titles not delivered to DMV, no inspections completed, wrong temp. Tags issued)? Crazy…..
Registering cars in other states is usually to evade sales taxes. Back when I was service manager for an RV dealership, our salesmen would help a buyer get a PO box in Montana, where there was no sales tax. That evaded the Louisiana state and local sales tax, which was 9%. This was a very common dodge in the RV sales world.,
Explains how all those Million$ motorhomes and supercars were purchased with the average wage in Montana, and why we see so many "Montanans" on (permanent) vacation all across the US!
I purchased from carvana a month ago. I live in PA and my temporary registration plate is from Georgia and the car came with no PA state inspection. My car came from the camp hill, PA location. I'm still waiting on my registration to come back and I only have 15 days until my temporary registration expires.
@Google Account Typically, my conservative mindset would command me to simply say "thanks!" but in your case I'll simply give you the New York salute, aka "the middle finger" 😃
@@glasshalffull8625 1. NYC has always been a dump and will remain so until they crack down on crime and other offenses. They can start with illegal immigration. 2. I'm a conservative. Yes, we do exist. 3. It's a vacation, no one is "escaping".
I live in NC and bought a car from Carvana in December 2020. I thought it was strange that it came with a Georgia temporary tag. The tag was about to expire and then I received a temporary tag from Tennesse. It took over 2 months for me to get my permanent tag from the state of North Carolina. It seems like carvana has some real issues. My vehicle came out of the Concord location.
I bought a car from Carvana in July 2020. It took 9 months to receive my title, registration and plates after dozens of calls and 2 Better Business Bureau complaints. One of their reps admitted there were THOUSANDS of people waiting and waiting for their titles. There is something very nefarious going on with Carvana.
I'm pretty sure one or more of that dealership's managers was shortly thereafter told from higher up the chain "Yeah.... You don't have to come in tomorrow, or really again actually ... ."
I love how they got screwed for failing to properly process the paperwork but part of the agreement is the only thing they can do for the next 6 months is PROCESS PAPERWORK.
Military is a large user of the out-of-state temp tags. For instance, a few years ago, I traded in a car in Florida (where I was for extended training), registered it in the Commonwealth of Virginia, and a few weeks later, took off for my new duty station in Washington State.
Tax, tag and title fees are substantial in NC. Inspections are required. I lived in NC for five years but kept my cars registered in my home state to avoid the fees. NC wants those tag and title fees as much as Carvana wants their revenue.
I used to live in Topeka, Kansas, which was in Shawnee County Kansas. Among other things, we were known for having exceptionally high vehicle registration fees and tag fees, as well as sales taxes. Many people from Topeka would run across the Missouri River into Kansas City, Missouri, to buy vehicles because taxes and registration fees were so much lower. Then they would drive around northeast Kansas for up to a year on a Missouri tag and registration despite actually residing in Kansas (which was a violation in and of itself as your vehicle was supposed to reflect your place of residence if different from registration within 30 days of your move). I have to wonder if they were saying these cars were registered in another state due to lower taxes, or title and registration fees, and they were just going along with it. Was the dealership in question on or close to a state line?
From what I've seen this is largely how they operate. They issue temp tags from a handful of states without always considering the laws in the destination state.
@@connorhus Good guess, but I suspect that most States have closed that loophole as mine has. Back in the '70's it was common to issue a temporary tag in order to drive a dealership-owned car. The State DMV trusted the dealers and didn't care. Legislature took exception to this in most states and Temps are audited to assure they are used properly.
That is true a lot of times some of these companies have where they don't even have to pay a lease for 2 yrs. And the suspension can be long over before they actually really have to start paying so they can hibernate no problem. I mean it's known that we should have a 6 month float for our personal financing I would imagine a business needs 24 months.
An out-of-state temporary tag would be fairly common at their Charlotte location as Charlotte directly adjoins South Carolina. Also, I suspect that management at the Big Vending Machine at Tempe, AZ, knew or should have known about these irregularities. That's what management is supposed to do.
The Charlotte office of Carvana is currently under a two year suspension by NC DMV (11/18/20 to 11/17/22) for two violations, failure to fully comply with regulation regarding issuance of temporary tags and failure to obtain written proof of valid insurance from buyers. You can find this article on the internet. For some reason, this Carvana location was allowed to continue operating.
When my wife bought her audi in NC it had NC temporary plates (we live in sc). My thought would be what ever your license reads is where they should send paper work to get plates and registration. At least that's what they did at the audi dealership.
We purchased a car at a dealership in New Jersey. When we registered the car, we wanted it registered in NY. Well they did that for us. They did not care where it was registered, but 2 weeks later we had the NY plates. So it can happen and its easy for the dealer to just register it where ever you want.
The problem isn't obtaining a license..It's complying with the rules of having one..Lot size..Lighting..Insurance..Dealer Tags..etc.. many things people don't think about..
The title thing is a bit weird. I know of a few companies who register all vehicles to states other than where their corporate headquarters are. Maybe for certain ones it's a legal requirement due to the nature of their business... I don't know. Some of them probably never travel a mile of roads in the state they are registered in. I does happen for whatever reason so it didn't seem that bad, but still odd for a dealer. My only question is when your temporary tags expire and you have to buy plates would it be considered an out of state vehicle because of the title, or does it go by the buyer and seller addresses?
A couple things not considered in this video- Carvana speaks of selling online extensively. For the second issue (the tags for out of state and the no inspections), it possible these buyers bought them online, and lived in the town where this dealership was. In a neighboring state to where I live (and previously had lived short term), any time you bring in a vehicle from out of state to retitle in the new state for a new registration, you have to have it inspected by the sheriff at the county register, which in reality all they do is compare the VIN on the title presented to the VIN on the car inspected. So the thought I have is that they had a breakdown of process. A customer from by the dealership went to the Carvana website / phone application, found a car, bought it, financed it, and did most of the work online. Since when you are online, you can buy cars that are located elsewhere in the country (potentially out of state) that Carvana ships to you, they could have bought a car that was located at a different Carvana location in another state. The initiating dealer location out of state could have started the process, put the in transit / temporary tags on, done some of the initial titling paperwork / etc., and then put all this paperwork in the car and shipped it off to the end point. Then, at this dealership in North Carolina, there could have been a breakdown in the process where the employees already saw the tags, paperwork, etc, and didn't understand / realize they needed a local temporary tag / inspection done prior to delivery. As this only affected the one North Carolina location, this could have been a missed training opportunity / process that they acknowledged, and agreed to this because they realized they messed up and need to take several months to put processes in place to ensure it doesn't occur again at that facility. As a software engineer by trade, if this is due to web based transactions (which I assume is a large portion of there business there), I can see that it could easily take 6 months to develop and implement an overhaul like this. This sounds like a very plausible explanation (and could even explain the first issue with the titles if it is an out of state vehicle transfer in with additional missed opportunities.)
Umm, so it they're 'processing paperwork' for the other dealerships, what are the chances I could buy a car at a different dealership, have the paperwork processed at the 'closed' dealership,,,and, oh, by the way, could I pick my car up there too, since I live there? I think the NC DMV just got played.
The Raleigh location has a vending machine, I wonder if it has a large 'Out of Order' sign on it?
I think the Concord location processes vehicles. I assume they do things like detail and clean them up there.
We just need to get king Kong to shake the vending machine to get some free cars
I would hope so it’s such an eye sore
I would add a "Kick Me" sign & put up a trail cam 😂
How much is the 2 ton bag of diet candy...🤣🤣🤣🤣🤣
I'm sure the cars are already shipping to the other dealer sites to be sold
Yeah, ship them all over there, then complete the paperwork for the off-site sale locally and boom, loophole
Exactly. Easy work around
considering they hire auto transporters with no exp, for 65-70k a yr.. yea no problem.
Or they're using the suspended lot as a "show room".
They don't even need to ship them. They are an online dealer as much as a B&M. Officially "sell" them in Charlotte and have the buyer pick them up.
But North Carolina has one of the most complicated DMV processes I have EVER dealt with. One of the big ones is that you can't finalize the paperwork until the CITY taxes come back. You have to go do that as a second step and then back as the third to finish.
NC sucked. My guess that the "out of state" temp tag issue was when they sold out of state inventory.
State: You did paperwork wrong.
Dealer: Ok can we pay $700 and then just be the delivery and paperwork location for the one across town?
State: Sure.
"The people at the main vending machine."
I may be easily amused, but that made me chuckle.
Where else can you buy a car out of a vending machine. If you have a ton of quarters in the trunk.
My experience with carvana was all the “ boots on the ground “ employees were part time college students. That’s including the managers. So , no , I am not surprised their paperwork is a mess.
I had heard a story from a buddy whose next door neighbor bought a car from them. On loan the usual stuff. They sent him the title instead of the loan company. Somehow they screwed up the paperwork so hard it looks like he bought and owns the car outright for the money down and Carvana owes the money for the loan. Basically made 34k$.
Part time college students don't wear boots yet, more like soft sole sneakers.
@@SpaceCadet4Jesus slides
@@PandorasFolly
No he didn't.....
@@PandorasFolly if he signed any paperwork for that loan, he will still be liable for the loan payments & the bank holding the loan will have a legal lean on that title.
Everyone knows Steve’s dealership would be named “Lehto’s Lemons”
That would be....Lehto's Lemon-ade!
Customer: ‘I’m gonna sue you!’
Steve: ‘I know a good attorney!’
No. It would be Lehto's Limes. "Not a lemon anywhere!"
@@kensherwin4544 you should be in marketing!
@@Strategic1now aww ya beat me to it ... By a country mile lol
Ironic!
A carvana ad appeared as a prelude to this episode.
Isn't that like a rooster crowing at sun-up?
I saw it too, it’s like they know Steve’s going to cover it so they want to get a word in edgewise. Or the algorithm’s a sarcastic sumbitch 🤷🏽♂️
Saw the same ad. Been a long time seen one of their ads.
Keyword activated.
When I clicked on this video, I had to sit thru a Carvana video before I could watch Steve. Priceless.
I got two in a row.
They probably have a legal "out" that they can sell the cars online to out-of-state buyers. If not that, they'll send the cars to another one of their dealerships. I'm sure Carvana did the "math" about simply closing one location without diminishing their overall inventory. I'd like to see a bigger fine as real punishment.
I have to agree with you thinking. I bet they will just sell through the other locations, it will be just a bit on a inconvenience. Hit them up with a $100,000 fine or something that might sting a little.
They are still faking temp tags to buyers who don't know any better. If the dealer and buyer have nothing to do with Tennessee they still send Tennessee temp tags. They also are offering to just print out more TN temp tags when buyers complain the current one expire. Why TN? Because it doesn't require inspection.
I’ve seen they started to take a few shortcuts on reconditioning as well as other interesting issues. Unfortunately 30 years experience tell me so much more. Turn and burn cost lots more in the long run. You have to have a very very controlled consistent process through the sale process. If it breaks down everything does. Great story
Like me you know when the wokester Wall Street MBAs get involved with one of these chains they eff them up
I almost bought a tacoma from them like 2 years ago. I live in pa, n 4 wheel drive is a concern thus, i chose one with 4x4. It came with barely passable rear tires cooper discover at3's (not bad all terrain tires when theres tread) n new front tires (the absolute cheapest Chinese brand highway tires, it had 30k miles and was also a standard.
Now ur paying the highest resale with carvana so i expect it to be up to snuff. Point is, the small stuff made me return n get my 2012 tacoma back. (Ironically it was worth 9k trade in and now worth 11500 trade in with more miles however the cost of other vehicles has risen so im just driving it for now and im fine with it).
Anyway the tires being mismatched on a 4 wheel drive truck of which they told me is fine and they could care less even though they were diff tread and diff tire types and diff size because of the variations of tire brand and type. All of which if ur truck is 20 years old n its a farm truck is okay not when ur paying 30k for a fn truck it is not okay.
It was missing the driver side floor mat because the idiot driver left them in the bed while transporting it, so it flew out and probably hit a car who knows.
It also had a vibration in the drivetrain in 3rd gear at a certain speed which i found odd. It shifted very strangely as if there was something wrong with the transmission. It was just off and couldn't pin point what exactly it was. Didnt have time to get it fully inspected (which at toyota is about 125 or so). I couldnt get in, in time.
Anyway point is, they eventually said theyd put new tires on the rear when i said i was giving it back, and I said im good, im not buying it now.
I just dont get how poor their buisness model is when it comes to an inspection i dont trust any inspection process let slone theirs. Prob just scummy 3rd party mechanics robbing them blind so it may not even be carvana's fault all the time per se.
I was so happy when i got my truck back though i remember that.
In addition, it wasnt even inspected because they dont inspect them because they go to any state that the customer is in.
@@todtalk3912 if it was a late model, might have been the accumulator in the hydraulic clutch circuit you didn’t like. I had a 2019 Taco stick. After I got my wife a 2020 4Runner, I liked it so much I got myself one. The 4Runners are just built better, better materials, etc. the 3.5 sucks where I live off the line (6700 ft) the 4.0 has good low end.
@@JAMESWUERTELE 4Runners have always been the best made Toyota vehicle, besides the absurdly over-engineered and absurdly expensive Land Cruiser.
I wonder if this was strictly a financial decision by Caravana to not take on the heavy cost of litigation…..especially if they thought they had a weak or un winnable case. They could pay the $750 (chump change), ship their cars to another location so they are not sitting on inventory and still earn enough money doing paperwork for and referring potential customers to the other dealerships. With that set up, the six month deal doesn’t sound all that bad. Now if they could not get rid of inventory through sister dealers or auction then it might be a more costly decision. Interesting nonetheless.
Not nearly as costly i they can't shift the cars through their other locations as it would be for a new car dealer, though. New cars on the lot are usually there on financing (there are some dealers who own them outright, but that's rare) and the charge goes as of the first of the month.
That's one of two reasons you can usually get a better deal close to the end of the month. (If they have to pay a $500 financing fee tomorrow but they can get the car off their hands if they discount you an extra $250 today, they're $250 up on where they would have been if they sold the car tomorrow, and there's no guarantee that car wouldn't still be sitting there in another month.) The other reason is the car makers give a big bonus to the dealership if they sell their monthly quota of cars, and his can make the deal profitable even if they sell a car at a loss if it puts them over their monthly quota.
And the BEST time of the whole YEAR to buy a new car is between Christmas and New Years. The above issues are in play, AND people tend to not buy cars in December because of extra holiday spending on travel, food, gifts, etc.
I live in Va. I'm looking at a RAV4 from that location. They were gonna charge me 250 to ship it to Chantilly where I would buy it. I got a call on Sat where the salesman told me that the there is no longer a transfer fee. I guess this is the reason why.
They sell online. They wouldn’t need to send any of the cars to auction.
It’s not really a shutdown if they can do paperwork for cars sold at other locations as you can go to the closed dealership, pick out a car and then ‘buy’ it from another dealership with a credit card transaction then get the paperwork done at the ‘closed’ dealership and drive away in your new to you car.
yeah we were clickbaited...notice vid title didn't mention just Carvana N. Carolina and.....not a shutdown as we all know the conotation with that word is "put down" or put out of business..as in entirely
I purchased from Carvana in California several years ago and ran into no issues. I was lucky. The stories I read about others made me hyperventilate.
My guess is they plan to move cars to other state locations to sell them
My first thought was if you walk into that dealership within the next 6 months they "Just happen" to have a representative from one of the other 3 locations on hand who CAN sell you a car ...
With the other issues, that sounds like something they would do to !
@@zaqsdk shouldn't they be prosecuted for "illegal internet sales"?
As I understand it that Carvana does most of their business online so stopping one dealership from selling cars seems like an easy fix, just move the cars to the other dealers and business as usual.
My thoughts exactly. Their greatest cost here may be having to transport some cars a greater distance.
What I find curious is that, under this agreement, they are permitted to do the thing that got them in trouble: processing actions involving DMV paperwork!
Huh?
Suweeeeet deal, wasn't it?
Right?! I’m quite perplexed by that as well, but I guess that’s just good faith from the state so the people at that location can have steady employment would be my guess
I imagine they need to reprocess all the paperwork they fucked up. Kind of like your mom making you stop and start all over again when you're doing something the wrong way.
@@tissuepaper9962 I would imagine all the paper work steaming from those deals has already been corrected. As all those corrections needing to be made before people could properly license and register their vehicles is how this was all discovered in the first place
A friend of mine purchased a car from carvana, interesting that the story aligns with her experience. She purchased the car in Nevada, they couldn't get the registration over to the DMV and she initially had an Arizona department of transportation temporary tag. Then when that tag expired they sent her over a Georgia tag because they still hadn't figured out the title and registration a month and a half later. Right before the Georgia temp tag expired they were able to register the car and get the plates to her. I'm a used car dealer in Nevada and I don't understand how she never received a Nevada temporary tag not once. The ETS system Nevada uses wouldn't even allow for an out-of-state tag to be issued. Interesting, I wonder if they will be getting into more trouble soon
I am so amused by the fact that the ad before this was for CARVANA!
Same here.
oh ha ha, NO way? Hysterical.. Never ever in all the years have I ever run into a Carvana ad here on the channels we watch, etc. I wonder if maybe ads are more geared towards which state I live in? oh well, who knows, who cares and I enjoyed seeing this
Me too...4 months later. Right after I watched the new video from SL about Carvana in Florida
I just don't understand why anyone would buy a car sight unseen off the internet!
I said that when ebay motors came on the scene. Apparently it is a popular thing.
Times they are a changing ...
I recently sold a car to CarMax. Somehow, their polished presentation didn’t feel at all like the usual sleazy used car dealer transaction.
Maybe there’s hope for the business after all.
SOME OF MY CLIENTS WOULD BUY FROM OUT OF STATE, BRING IT INTO MY SHOP FOR AN INSPECTION AND BE REALLY SURPRISED A 10 YEAR OLD CAR WITH 135,000 MILES ON IT WASN'T LIKE NEW. GO FIGURE.
I recently sent you an email about my Carvana experience and a question. Also I’m in NC and they gave me Georgia tags and South Carolina paperwork. It was odd. They also messed up my DMV paperwork.
Sounds like you were one of those deals that Carvana got shut down over!
Interesting. So they were doing this without a specific request from the customer...hmmmm VERY ODD.
Being Carvana I wonder what state the car was shipped to you from.
@@robertstoneking7916 no idea, I assume it was being held at their Georgia location and maybe that’s why. Didn’t come with an inspection for the state either
It means you bought a car that was located IN Georgia and they "processed" the sale from a SC dealer location. The dealer with inventory tagged it with GA plates to move it. (maybe driven from GA to SC) Look at the SC paperwork and see who the official dealer was.
A friend of mine has a car parked in his garage, for two months now, that he purchased from Carvana. No title, so he can't get it registered. He's applied to the state for a replacement title, but they have to research why Carvana didn't have the original. Could be stolen, could be a salvage title, could be anything. $8800's worth of car, not usable.
I live outside of Greensboro, NC. The ad that came on right after your report was for a competing used car dealership. Wow. The algorithms.
The ad I saw was for Carvana. :-)
GOOGLE knows how to play the "Bad News" game much better than their advertisers do! The $700 fine by the State is chump change compared to what the Google Adwords is going to cost CARVANA Corporate! roflmao
Saw this on the news, was waiting for you to cover this.
I live in Raleigh, I'm gonna have to drive by there now and see what the lot looks like
I live in Cary. Howdy neighbor!!
@@ClinicalDecisionYikesYT 👋 hiya
You mean the "vending machine", and I might have to ride by there too!
Be sure to send @Steve Lehto some video to share with us!
I wonder if they can hold the title paperwork for the length of time they give the buyer to return the car?
Legally, no. But there are many who will "be slow" in handling the paperwork. (the street in front of my shop is regularly littered with untitled cars from auction. PD _hates_ dealing with those cars because there are no legal owners. There won't be any DMV / title records until they sell them to an end-user -- and because they came from out-of-state, they won't disclose the salvage nature of any of them.)
Ben's got some nostalgia going on today!
Thanks for the humor Steve.
At least there was no wood-chipper involved.
If they have 3 other locations in the state is that a penalty at all? Couldn’t they draw up paperwork at the location where they are not allowed to sell and have the customer “buy” the car from the other location (and pick it up at the no-sell location while they’re there)?
something says to me that the dealorships are a franchise deal so while the company header says "carvana" the other locations may not be run by the same "licensed" individual. it's highly possible that the parent company may not have total input into all dealings at each location.
My guess is yes and they'll work out payment through corporate. The other locations will sell the cars for them, send the money to corporate as normal but INCLUDE the profits they'd normally keep and then corporate will send the shut down location the profits for those sales in the form of a "cover expenses" check or whatever they come up with. No doubt they will not just let cars sit there for 6 months in this hot market.
@@jonesjones7057 A great example of the non-negotiable "Dealer Prep & Papers" fee.
Lots of Military members buy cars in one state and register them in other states/home states.
I’ll bet that’s happened here. Ft . Brag is close to Raleigh.
lots of people do that. not a big deal.
That’s not what he’s talking about here.
Lots of business "LLC's" do that too. Different reason. lol
@@Xander1Sheridan It's a big deal to the State Tax Commission in the state selling the car. A big enough deal that the dealership will pay an employee to drive the car across the state line to make delivery, and then catch the next bus back home.....
makes sense. I bought through them once. It was an awful experience and highly recommend others to NOT use them.
I bought through them last year, it was the best used car experience I've ever had in 30 years
Did you put your money in the vending machine and it didn't spit out a car? Did you try tipping the machine?
@@billrehm3590 i had them deliver but they took soo long getting the paperwork done, i had a car I could not drive after my temporary plate expired
Sorry to hear you had a bad experience. My wife bought a car from them maybe 2 years ago. Was very wary about the whole idea, but turned out great. Price was at market value for a private purchase on Craigslist, but had a week to ensure she liked it, and I could look over the car thoroughly. No way can ever check a car over in that detail for a private sale.
Ive bought four and sold five through them and it was fabulous.
Whenever I see one of those vending machines, I think “that’s a lot of quarters.”
"exact change only"
I picture Slim Pickens yelling for somebody to "GO GET A SHITLOAD OF DIMES!"
@@juanaboynkin1196 now I can’t stop singing “the Camptown ladies sing this song, doo-dah doo-dah, the Camptown racetrack’s five miles long, Oh tha doo-dah day”😂
The algorithm is on point today. It served up a Carvana ad before this video.
I got one at the end.
That is GOOGLE Advertising taking their slice out of the "Bad News" pie! A rather large and juicy slice I might add...... As the lyrics to the song MONEY proclaim, "Kick 'em while they're up, kick 'em while they're down....." GOOGLE has fine-honed that concept.
Well, I never! A used car dealer cutting corners 😲 but yeah, hopefully shutting them down will not be a lesson soon forgotten
I know right?? Unthinkable..
Sounds like they might be taking 6 months to train the new management at that location! Since they ship cars from location to location already, they should be able to work around this fairly easy.
Yep, they'll just pay minimum wage for kids to drive the cars to another location for sale.
They're not gonna lose much money at all.
@@TheGuruStud but they are, hopefully, going to have more competent management when they start selling cars again in 6 months. If they got severely punished and lost a ton of money you would complain that the action clearly benefits the big three hegemony and the DMV must be in their pockets. The public benefit comes from the change in management, not the money. If anything we need to give out fewer fines for everything so they stop being a line item on government budgets. A monetary incentive for the state to convict seems obviously wrong, doesn't it?
carvana isn't a dealership. You can't go to one and buy a car. It is all online. The only thing anyone could do at a carvana location is pick up a car they already bought and did all the paperwork for.
@@Xander1Sheridan So it could be that another party did the bad paperwork deeds and this Carvana forgot to step back when Corporate asked for a volunteer to take one for the team?
Would the out-of-state plates be for the buyer's LLC in Montana?
No they are cherry picking Tennessee for multiple reasons.
What is the advantage to the dealer or buyer of selling/buying a car with out of state temp tags?
As a Dutchman, I am very suprised to see someone a FC Groningen shirt...
my grandfather was from groningen left the netherlands and moved to holland michigan
Arjen Robben is a hero of mine.
i dont know about the out of state ... my car came from Texas and stopped and was processed in Greensboro NC so could I have texas plates?
Hundo, unfolded, behind the "Nostalgic" plate, on the right wall shelf. 1k+.
Wait the Wake County location messed up the paperwork but they are allowed to process paperwork from other locations??
Not sure if anyone already mentioned this, but in NC our inspections are tied to our tags. Inspection must be complete before you can renew registration/tag. I suspect because they weren't getting the inspections, that is why they were putting out of state tags on the cars.
And if the other states didn't mind their temporary tags being abused, why not..... it must have saved CARVANA a lot of time and money....
@@dalewalker4614 so I wonder what those states had to say about Carvanas shenanigans. Seems there should be some penalty for misuse.
Got an explanation for out of state temp tags, since it close to a military base, might be military members getting tags for their out of state vehicles because they don't have to register in the state they are currently station at but their home state
Lol I got a Carvana ad when I clicked on this video.
I love your videos and Miss Hethers voice (l neverthought she was a robot) but ironically the You tube ad for this episode was a Carvana ad. Lol
I’m betting they were using the out of state tag to get around the cost of doing the required inspections.
I'm in NC. the inspections are just a tax.. they don't really do much.
@@TedSchoenling The shop that does mine is 100% by the book, as the NC DOT inspectors like to pop up and check the inspection stations out, at least they do where I am.
I doubt the $30 fee(tax) for inspection impacted them very much.
It's the substantial sales tax and property tax of N.C. that they were circumventing. And I'd bet they were using the out-of-state ruse as a closing tool. The buyers were aware what was going on, if not fully in on the scam. Inspections are trivial.
In Manitoba Canada even if you have a Motor Vehicle Dealers License you have a time limit to sell a car or register it as your own personal vehicle.
If it’s just one location they are going to just sell cars from a different location nearby because they are internet based and deliver the cars.
I wonder if they can process new transactions at those locations?
Soooo they avoid paying local and state taxes... get caught.. and the state says ok, continue not paying us for another 6 months... Must be nice to live in a state that doesn't need income!
Well, to be fair, the state is supposed to use those taxes to provide things like security and education, but instead it lets Antifa roam free and rebrands racism as CRT so it can get kids to hate based on race. Given all of that, it sounds like the state is collecting pretty much what their services are worth.
@@georgeorwell2703 Amen! 4th gen North Carolinian. Told them to “go to hell and I will move to The Great Republic of Texas”.
This deal does smell a lot more like one cut by the State Tax Commission than the DMV..... Means that CARVANA also had to cough up the taxes they had collected in that state and they'll be watched for a few months.
The TH-cam ad algorithm has a twisted sense of humor. I watched the video to the end, then immediately there was a Carvana commercial! 🤣🤣🤣
TH-cam gets rich doing this when bad news descends on any brand. It'll be 30 days before CARVANA gets the massive advertising bill and puts a STOP on their TH-cam ads.....
Caravana will not lose much, maybe a few employees will. They will continue to recondition vehicles there and ship them to other locations. They somehow circumvented state laws by issuing out of state tempory tags, that is illegal. Temp tags reflect the location of where the vehicle was purchased, thus the vehicles having to pass NC State inspection.
@Joe Baldwin what is sounds like they did was "deliver" the car to you in NH. The paperwork was preprinted in Georgia. Then they either require you get the vehicle inspected and provide them with the results, or they inspect the vehicle themselves and include the inspection with the registration paperwork. If the location you pick it up from involves their license, the vehicle must be inspected first, then the temp tag and paperwork must be through them.
Temp Tags can be issued by either end of an interstate purchase. When I went from Texas to Florida to pick up a car I had a set of Texas Temp plates issued before I left. Because Florida charges a lot for theirs and requires you to register the vehicle totally in the state and THEN transfer. (so they can get the sales tax)
With Texas tags in hand I was able to just pay sales tax in Texas and complete the sale as a Texas purchase. My sale was completed before I left Texas, legally.
Alternately when I bought a motorcycle from a dealer in Oklahoma there was no cost to me for the dealer to temp tag it and Oklahoma did not require sales tax for an "out of state" sale. Some states have very anti-competitive laws.
@@redwolfexr the key in your situation is you handled the Texas tags, which is legit. If the dealer provides a temp tag, then it can only be from the State the sellers license is under. In most cases of cash purchases, out of state buyers can handle their own taxes. If financing is involved, in most cases the tags, taxes, registration fees are based on the buyers State. The selling dealer just needs the buyer to have an out of state license in both cases and the paperwork in the buyers out of state address.
And Carvana has a SC and a GA dealers license.
It is part of their business plan - they sell inventory from everywhere to anywhere.
@@redwolfexr it's not that simple. They have to abide by the individual State laws. So, as I said earlier, the paperwork and temp tag would have to reflect the state of the dealer license. In this discussion the issue is the vehicle was sold illegally because it was not inspected in the state of the dealerships license, which the paperwork was submitted under. In this case, they could not legally use a temporary tag from one of their other locations to circumvent the required state inspection before selling the vehicle.
My guess is the vehicles have been moved to the other dealerships so the net cost to them is $700.
Same EXACT thing happened to my son-n-law with carvana, this past summer! He just got the tag. They even emailed him another temporary tag to print and use.
When I was in the car buisiness we had out of state customers all the time usually on hard to find used cars , we would just sell them a transit tag that allows you to drive the car for 30 days and you would have to plate register and title the car in your home state
I’m a NC resident with a Raleigh carvana car purchased in February. My Georgia temp tag they provided just expired (it’s my 4th temp tag) and they say they cannot get me another temp tag since they lost their license. They claim my purchase is being rebuilt due to an incorrect address on my paperwork. Now I’m stuck in this loophole with a car I don’t own, an illegal expired temp tag from georgia and carvana is just giving me the run around. After hours on hold and telling me 3 times over the last week I’ll have a new temp tag any day, they tell me I should go to the NCDMV to get my temporary Georgia tag extended.
Any advice?
I had a similar experience. Nine months, 5 temporary out of state tags, multiple calls. Contact the Better Business Bureau and file a complaint. I would also contact, in writing, the NCDMV, state Attorney General and the agency that just suspended them. Pressure seems to get results. There is no way your NCDMV is going to be able to extend a temporary Georgia tag. The reps at Carvana are friggin clueless.
There was a caravan ad before it would let me watch this lol
I live in Vancouver, Wa (not canada) right across the river from Portland, Or. There are few motorcycle dealers here in vancouver. I went to Portland to buy my used motorcycle, and at the end of the transaction I had been issued a washington trip permit to use while waiting for my new license plates to arrive. I dont believe it to be very unusual to have out of state trip permits issued from a dealership.
I assumed a Miata got stuck in the vending structure
Or fell out!
Atra, it was a Ford Pinto Hatchback! Even had a racing stripe on it to make it go faster!
It's funny as a carvana commercial while I'm watching this video
The Carvana in Rockville MD issues temporary tags and registrations based on where the car comes from rather than the state of Maryland. Always wondered how they could sell a car in MD and issue temporary tags and papers from Georgia.
Yeah, your comment is making alot of sense and sounds really logical. Great comment
This could be a processing center. I purchased a vehicle and the prep center for upstate NY was Rochester where they do the inspection and apply the plates.
Could the out of state registrations be part of a larger scheme to avoid taxes?
Avoiding taxes makes no sense because the buyers end up paying the taxes and interest on top of that tax as part of the contractual agreement between the buyer and seller. I think somebody just sucks at their job and it wasn't intentional foul play.
Or perhaps to "collect" higher taxes in one state and then paper the car to a state with cheaper taxes and pocket the difference? Are networks of used car dealerships smart enough to figure out how to do that? Methinks I know the answer to that question.....
I found it unbelievably funny that there was a Carvana ad before this video. LOL
So what was the flip side where this is the preferred outcome? 🤔
Being Carvana they sell the cars from an out of state location and there's some other taxes the state and local governments won't be getting.
Charlotte, NC location is apparently on “Probation” from 11/2020-11/2021 for issues as well. They state they will allow “administrative” duties only to be performed at the Raleigh location for their other locations in NC? Did the problem at the Raleigh location not have to due primarily with “administration” at this location + dropping the ball (titles not delivered to DMV, no inspections completed, wrong temp. Tags issued)? Crazy…..
Registering cars in other states is usually to evade sales taxes. Back when I was service manager for an RV dealership, our salesmen would help a buyer get a PO box in Montana, where there was no sales tax. That evaded the Louisiana state and local sales tax, which was 9%. This was a very common dodge in the RV sales world.,
Oregon is another Tax Haven for RV.
Explains how all those Million$ motorhomes and supercars were purchased with the average wage in Montana, and why we see so many "Montanans" on (permanent) vacation all across the US!
I purchased from carvana a month ago. I live in PA and my temporary registration plate is from Georgia and the car came with no PA state inspection. My car came from the camp hill, PA location. I'm still waiting on my registration to come back and I only have 15 days until my temporary registration expires.
Steve, I'm binge "watching" your videos while en route to Yellowstone with my son!
Goodbye NYC, hello 'ol Faithful!
God damn it, the rats are escaping New York...
@Google Account Typically, my conservative mindset would command me to simply say "thanks!" but in your case I'll simply give you the New York salute, aka "the middle finger" 😃
@@NeverEvenThere rats, excuse me?
@@glasshalffull8625 1. NYC has always been a dump and will remain so until they crack down on crime and other offenses. They can start with illegal immigration.
2. I'm a conservative. Yes, we do exist.
3. It's a vacation, no one is "escaping".
@Google Account Your Cuomo reference is probably correct, many of my friends and I are glad to see him go.
I live in NC and bought a car from Carvana in December 2020. I thought it was strange that it came with a Georgia temporary tag. The tag was about to expire and then I received a temporary tag from Tennesse. It took over 2 months for me to get my permanent tag from the state of North Carolina. It seems like carvana has some real issues. My vehicle came out of the Concord location.
I bought a car from Carvana in July 2020. It took 9 months to receive my title, registration and plates after dozens of calls and 2 Better Business Bureau complaints. One of their reps admitted there were THOUSANDS of people waiting and waiting for their titles. There is something very nefarious going on with Carvana.
I'm pretty sure one or more of that dealership's managers was shortly thereafter told from higher up the chain "Yeah.... You don't have to come in tomorrow, or really again actually ... ."
We don't have a desk available for you.
It’s pretty bad when they decide you’re too full of crap to sell used cars.
I love how they got screwed for failing to properly process the paperwork but part of the agreement is the only thing they can do for the next 6 months is PROCESS PAPERWORK.
Was thinking the same thing...
It does seem to defy logic.
They got "screwed"? How? They got "caught" breaking the law.
Military is a large user of the out-of-state temp tags. For instance, a few years ago, I traded in a car in Florida (where I was for extended training), registered it in the Commonwealth of Virginia, and a few weeks later, took off for my new duty station in Washington State.
Tax, tag and title fees are substantial in NC. Inspections are required. I lived in NC for five years but kept my cars registered in my home state to avoid the fees. NC wants those tag and title fees as much as Carvana wants their revenue.
There was a Carvana ad at the beginning of this video lol
Oh no
Is there an expiration date or a sell by date on the cars in their vending machines?
There're good till mold starts growing on them.
I used to live in Topeka, Kansas, which was in Shawnee County Kansas. Among other things, we were known for having exceptionally high vehicle registration fees and tag fees, as well as sales taxes. Many people from Topeka would run across the Missouri River into Kansas City, Missouri, to buy vehicles because taxes and registration fees were so much lower. Then they would drive around northeast Kansas for up to a year on a Missouri tag and registration despite actually residing in Kansas (which was a violation in and of itself as your vehicle was supposed to reflect your place of residence if different from registration within 30 days of your move).
I have to wonder if they were saying these cars were registered in another state due to lower taxes, or title and registration fees, and they were just going along with it. Was the dealership in question on or close to a state line?
Every time I hear the name "Carvana", I can't help but think of the fish Pokémon of the same name.
From what I've seen this is largely how they operate. They issue temp tags from a handful of states without always considering the laws in the destination state.
Must be why I have recently seen more out of state temp tags than ever
@@connorhus Good guess, but I suspect that most States have closed that loophole as mine has. Back in the '70's it was common to issue a temporary tag in order to drive a dealership-owned car. The State DMV trusted the dealers and didn't care. Legislature took exception to this in most states and Temps are audited to assure they are used properly.
Ben is being Nostalgic today.
yup, 7 to 7
The beard is on schedule for the Christmas sleigh ride. Toys for all of the kids.
They transfer cars between location all the time. What’s to stop them from selling the inventory of this lot through their other locations?
How far the customers are willing to go.
@@Br3ttM considering Carvana is primarily an online dealership who brings cars to you I imagine the customer wouldn’t have to go very far.
Kinda like closing a Walmart for six months. The mothership will survive just fine.
That is true a lot of times some of these companies have where they don't even have to pay a lease for 2 yrs. And the suspension can be long over before they actually really have to start paying so they can hibernate no problem. I mean it's known that we should have a 6 month float for our personal financing I would imagine a business needs 24 months.
There is a limit in the number of times the out of state temp tag can be legaly extended. If the extend too many times...
It's always intersting when you voluntarily stop conducting business in the face of questions and an investigation! 😂😂👵
An out-of-state temporary tag would be fairly common at their Charlotte location as Charlotte directly adjoins South Carolina. Also, I suspect that management at the Big Vending Machine at Tempe, AZ, knew or should have known about these irregularities. That's what management is supposed to do.
The Charlotte office of Carvana is currently under a two year suspension by NC DMV (11/18/20 to 11/17/22) for two violations, failure to fully comply with regulation regarding issuance of temporary tags and failure to obtain written proof of valid insurance from buyers. You can find this article on the internet. For some reason, this Carvana location was allowed to continue operating.
Haven't even gotten to the "Welcome To Lehto's Law" yet, and already had an ad for ... can you guess ... Carvana.
CARVANA's advertising dollars at work at TH-cam! roflmao
I happen to live in Wake county and we did buy a car from them last summer - but luckily didn't have any of these issues they were charged with.
When my wife bought her audi in NC it had NC temporary plates (we live in sc). My thought would be what ever your license reads is where they should send paper work to get plates and registration. At least that's what they did at the audi dealership.
We purchased a car at a dealership in New Jersey. When we registered the car, we wanted it registered in NY. Well they did that for us. They did not care where it was registered, but 2 weeks later we had the NY plates. So it can happen and its easy for the dealer to just register it where ever you want.
Got a Carvana ad right before this, lol.
The problem isn't obtaining a license..It's complying with the rules of having one..Lot size..Lighting..Insurance..Dealer Tags..etc.. many things people don't think about..
Owning a Used Car Dealership is not for the inexperienced, nor for the weak at heart!
Hahahahah, there was a Carvana ad, on youtube, that played just prior to this video starting!
The title thing is a bit weird. I know of a few companies who register all vehicles to states other than where their corporate headquarters are. Maybe for certain ones it's a legal requirement due to the nature of their business... I don't know. Some of them probably never travel a mile of roads in the state they are registered in. I does happen for whatever reason so it didn't seem that bad, but still odd for a dealer. My only question is when your temporary tags expire and you have to buy plates would it be considered an out of state vehicle because of the title, or does it go by the buyer and seller addresses?
You know it's ironic as I'm getting ready to watch your video and it's sponsored by carvana ad lol
A couple things not considered in this video- Carvana speaks of selling online extensively. For the second issue (the tags for out of state and the no inspections), it possible these buyers bought them online, and lived in the town where this dealership was. In a neighboring state to where I live (and previously had lived short term), any time you bring in a vehicle from out of state to retitle in the new state for a new registration, you have to have it inspected by the sheriff at the county register, which in reality all they do is compare the VIN on the title presented to the VIN on the car inspected.
So the thought I have is that they had a breakdown of process. A customer from by the dealership went to the Carvana website / phone application, found a car, bought it, financed it, and did most of the work online. Since when you are online, you can buy cars that are located elsewhere in the country (potentially out of state) that Carvana ships to you, they could have bought a car that was located at a different Carvana location in another state. The initiating dealer location out of state could have started the process, put the in transit / temporary tags on, done some of the initial titling paperwork / etc., and then put all this paperwork in the car and shipped it off to the end point.
Then, at this dealership in North Carolina, there could have been a breakdown in the process where the employees already saw the tags, paperwork, etc, and didn't understand / realize they needed a local temporary tag / inspection done prior to delivery. As this only affected the one North Carolina location, this could have been a missed training opportunity / process that they acknowledged, and agreed to this because they realized they messed up and need to take several months to put processes in place to ensure it doesn't occur again at that facility.
As a software engineer by trade, if this is due to web based transactions (which I assume is a large portion of there business there), I can see that it could easily take 6 months to develop and implement an overhaul like this. This sounds like a very plausible explanation (and could even explain the first issue with the titles if it is an out of state vehicle transfer in with additional missed opportunities.)
I got a Carvana ad when this video started :p
Umm, so it they're 'processing paperwork' for the other dealerships, what are the chances I could buy a car at a different dealership, have the paperwork processed at the 'closed' dealership,,,and, oh, by the way, could I pick my car up there too, since I live there? I think the NC DMV just got played.
I got a Carvana ad before the video 😂🤣😂🤣