How a Computer Error at Carvana Resulted in a Woman Receiving a Free Car

      TikToker SidneyKidneyBean (known simply as Sydney) recently purchased a car from Carvana, despite the controversies surrounding the company. Ironically, Carvana made a mistake during her buying process that benefited her. Due to the company’s new automated titling system, Sydney ended up being listed as the sole owner of the vehicle, essentially allowing her to acquire it for free.

      Like many car buyers, Sydney secured a loan through a bank—specifically, Bank of America—to finance her vehicle. However, months after she brought the car home, she received a letter from the bank asking for a copy of her title application. This puzzled her, as she believed Carvana had already handled that process and she had received her title. Sydney discovered that Carvana had not listed Bank of America as the lienholder. Instead, they designated her as both the owner and lienholder on the title and bill of sale, which meant she had a completely free and clear car without any repayment obligations.

      How did this happen? It appears that Carvana’s flawed new automated titling system was at fault. The process reportedly took only about a minute, and Sydney noted that Carvana staff were amazed by its speed, as she was among the first to use it.

      Furthermore, she received confirmation from her state indicating that the vehicle was registered in her name and she was the lienholder. Legally, Sydney owns the car, and now Bank of America is left questioning why it sent payment to Carvana since the loan is no longer backed by the vehicle. Technically, her loan is unsecured, which means she could sell the car, keep the proceeds, and default on the loan. Normally, this wouldn’t be possible since car loans require the lender to be the lienholder, preventing the borrower from selling the car outright. However, since the title is in Sydney's name, she could sell it and disregard Bank of America's claims.

      Despite this, Sydney has no intention of taking advantage of the situation. She plans to “take the boring route” by informing all relevant parties of the error and correcting it, even though many of her followers suggest otherwise. Her motivation? She considers herself not to be a “fraudster.”

      In addition to Sydney’s integrity, there are many legal agreements and terms she signed before obtaining the loan and car, which are standard in any dealership transaction. Engaging in any behavior other than rectifying the situation would likely create legal complications for her. Nonetheless, it’s amusing that Carvana inadvertently provided her with a free vehicle, which they might not have been able to correct had she not brought it to their attention. One wonders how long it will take for that automated titling system to be discontinued.

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