Carvana Co. said it adopted a Texas Department of Motor Vehicles tool that cuts out the need for state officials to review physical paperwork.
In a Wednesday news release, the online used-vehicle retailer said it will use an electronic odometer and sales disclosure feature – available through the Texas department’s webDEALER system – to streamline vehicle purchase processes in the state.
Paperwork for vehicle title transfers, registrations and inspections can instead be processed electronically through that system after Texas customers make a vehicle purchase through Carvana, the company said. That option is for buyers who have a Texas driver’s license or state ID and who have the vehicle picked up or delivered in the state, a Carvana spokeswoman said.
Texas’s e-odometer process is a great example of how simple technology tools can bring significant speed, efficiency and reliability benefits to traditional DMV processes,” Tony Hall, senior government affairs manager at Carvana, said in the statement.
Carvana, of Tempe, Ariz., cited its adoption of the feature as part of its ongoing push for modernization of vehicle-buying processes.
In 2023, Carvana has also backed legislation that revises or expands state vehicle codes and motor vehicle agency procedures to allow for electronic signing and electronic transmission of documents related to a vehicle purchase. Online vehicle sales are critical to the company’s business model.
In July, Illinois Gov. J.B. Pritzker signed into law a Carvana-promoted bill that codifies home vehicle delivery and electronic signatures in the Illinois Vehicle Code. Also in July, Oregon Gov. Tina Koteck signed into law a Carvana-promoted bill that directs the Oregon Department of Transportation to adopt rules allowing vehicle dealers or financial institutions to electronically transmit documents related to vehicle ownership, such as registrations and titles.
Both pieces of legislation are set to take effect Jan. 1, 2024.
Carvana’s share price surged Tuesday after S&P Global Ratings upgraded the company’s credit rating to “CCC+” from “D,” reflective of a “near-term improvement” in its liquidity position. However, S&P Global Ratings said the company’s capital structure “remains unsustainable.”