Tempe-based Carvana agrees to $1.5 million settlement over Connecticut customer complaints

An online used car dealer based in Arizona will pay more than a million dollars to settle customer complaints in Connecticut. The deal comes three years after an investigation into Tempe-based Carvana.

Connecticut Attorney General William Tong said hundreds of consumers reported delays in getting registration documents, payments and vehicle deliveries. Some complaints came during the pandemic when demand for used cars surged and Carvana experienced significant growth.

Tong will create a consumer restitution fund using $1 million from the settlement. Carvana also agreed to pay a $500,000 penalty to the state although half can be suspended if the company complies fully with the terms of the agreement.

“In addition to restitution and penalties, this settlement requires Carvana to come into compliance with all Connecticut laws,” Tong said. “We’re going to be watching closely to ensure they do right by Connecticut customers going forward.”

In a statement to KJZZ News, Carvana wrote, “We have always gone to great lengths to deliver the best possible customer experience, including proactively making it right when we fall short, and we are happy to continue to do so for Connecticut customers with historical concerns like pandemic-era paperwork slowdowns.”