Car buying has changed dramatically over the last couple of decades. Car buyers are no longer restricted to finding used cars on local lots and classifieds. One of the most popular online retailers for used vehicles is Carvana, the brand behind the attention-grabbing “car-vending machines.” However, car shoppers might be entitled to a payout from Carvana after an in-progress settlement.

Carvana may set aside a fund for car buyers who paid fees related to title transfer and registration delays

Car buying online is pretty easy in comparison to more traditional methods. In theory, a buyer can pick a car in their ideal budgetary range and complete a transaction online. What’s more, with services like Carvana, shoppers can buy and ship cars from across the country. Still, buying a car online can result in delays with title transfers and registration. And delays can mean fees. 

As such, buyers in Connecticut might be getting a payout to cover the money that shoppers spent on late fees and fines over the last five years. According to WFSB, a settlement may establish a one-million-dollar fund for buyers who “paid fines or other expenses due to a delayed transfer of title or registration.”

The settlement is the result of “hundreds of complaints” from Carvana’s sellers and buyers. Connecticut Attorney General William Tong says the complaints prompted his office to begin investigating Carvana’s dealings in the state three years ago.

It’s not just late fees or fines, either. The settlement also names vehicles “misrepresented” by Carvana. Attorney General Tong said, “A lot of complaints about how the car was represented on the website, the description of the car, lots of complaints about delayed registration and title or incomplete documents.”

Carvana, on the other hand, doubled down on its policies and customer experiences. “We have always gone to great lengths to deliver the best possible customer experience, including proactively making it right when we fall short,” a spokesperson for the online retailer said.

The payment fund for consumers isn’t the only bad news for the popular online car dealer. A recent Hindenburg Research report called the company’s operations a “grift,” citing an odd balance of “bankruptcy risks” and skyrocketing stock values over a few years.