Consumer complaint received 2025-12-18 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: Carvana Group, LLC
State: NJ

Complaint narrative:
I purchased a vehicle lease through Carvana and, as part of that transaction, I purchased the XXXX service contract, which is administered by XXXX. I paid for this coverage specifically to protect myself from major repair costs during the life of the lease. 

In XX/XX/year>, my vehicle experienced a coolant system failure, which is a covered component under the XXXX warranty. The coolant leak caused contamination and damage to the turbocharger, which is also a covered component. As a direct result of these covered failures, the catalytic converter suffered damage and was destroyed. The repair facility confirmed that the catalytic converter did not fail due to wear, age, or maintenance issues, but instead failed because of the coolant and turbocharger failures. 

XXXX approved coverage for the coolant system and turbocharger but denied coverage for the catalytic converter. The stated reason for denial was that the catalytic converter is considered routine maintenance. This classification is not supported by the written warranty. The XXXX contract states that all assemblies and parts are covered unless specifically excluded. The catalytic converter is not listed anywhere in the contract as an excluded component, nor is it listed as a maintenance or wearable item. The contract also contains no exclusion for consequential damage caused by the failure of covered components. 

I repeatedly requested that XXXX and Carvana provide the specific contract clause relied upon to deny coverage for the catalytic converter. Neither company has been able to identify any such exclusion. 

I escalated the issue to XXXX XXXX XXXX. After review, they initially stated they could not override XXXX determination. I then filed a complaint with the New Jersey Department of Banking and Insurance. The Department reviewed the matter and determined that it involved potential warranty and consumer protection issues, and formally referred the complaint to the New Jersey Department of Law & Public Safety, Division of Consumer Affairs ( Warranty Bureau ). 

After this referral, XXXX XXXX XXXX reopened the claim and stated that XXXX would conduct a higher-level review and assign a case manager. XXXX sent an acknowledgment letter confirming that the complaint was under review. However, after that acknowledgment, both Carvana and XXXX stopped responding entirely. As of the date of this complaint, no case manager has contacted me, no status update has been provided, and no determination has been issued. 

This complaint concerns the failure to honor a written vehicle service contract, improper reclassification of a major emissions component as routine maintenance, denial of consequential damage without contractual basis, and ongoing non-response after regulatory escalation. I am seeking enforcement of the warranty according to its written terms and a substantive response to my claim.

Company response to consumer: Closed with explanation