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It seems more trouble is brewing at online auto retailer Carvana. The company’s sales license was suspended in Illinois due to numerous complaints about vehicle ownership and registration. The duration of the suspension is unknown, but until the area of concern is resolved, Carvana cannot conduct business in the state.
The main concern is the delay that buyers face in receiving the vehicle certificate. The Illinois Secretary of State’s Office is investigating complaints about these delays, which in some cases have lasted up to six months according to Chicago Sun-Times. Illinois law requires titles to be submitted within 20 days. It is not clear how many complaints have been registered.
The Illinois Secretary of State is also investigating Carvana for allegedly issuing temporary out-of-state vehicle registrations to buyers whose in-state registrations expired. Temporary registrations are valid for 90 days, and some Carvana customers appear to have been ticketed for expired registrations. That adds a bit of salt to the wound because customers can’t register their purchased vehicle without a title, an issue people have complained about in the first place. The state will reportedly work with Carvana to get reimbursed for the fine.
As for Carvana’s side of the story, Motor1.com contacted the company for additional information but no response was received prior to publication. Based on Reuters, a spokesperson for Carvana allegedly said the company was working to resolve the issue, but disagreed with the state’s characterization of the facts and laws of the situation. The sale that was in progress when Carvana’s license was suspended will still take place, but nothing else will happen until a resolution is found. With 13 million people living in Illinois, that’s no small market.
This happened during a period in Carvana’s history that might be called the volitale. The company reported a net loss of $506 million through the first quarter of 2022, despite selling 14 percent more cars than the same period in 2021. Lower earnings per car and disruptions to Carvana’s reconditioning and logistics network were cited as major factors in the net loss. . Then on May 10, Carvana broke several proverbs by simultaneously announcing massive layoffs of 2,500 workers – 12 percent of its workforce – and $2.2 billion. purchase from ADASA US, an auto auction company.
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