Carvana Loses License, Again, To Sell Cars In Illinois

Carvana is in the rut again as it faces another license suspension in the state of Illinois. This is the second time in two months that the online used car company has received criticism from state regulators following similar sanctions imposed towards the end of May.

According to an NBC 5 reports, the suspension of Carvana’s license is effective July 18, 2022. Fortune 500 companies will not be able to sell cars in the Prairie State from that date, until it resolves complaints filed by the state.

The current complaint relates to an initial issue facing Carvana, which involved delays in the transfer of ownership and the alleged issuance of temporary out-of-state vehicle registrations for hundreds of Illinois customers.

To make matters worse, customers who bought a car before that date complained that the company could not complete the delivery of their car. Based on one of the customers contacted NBC 5Carvana said the delay was “due to a dispute with the Secretariat of State office.”

The customer bought the car in June and should have received the unit last week. The company’s customer service tells customers that “they don’t ship any cars in Illinois at this time… I’m pretty frustrated with the whole process.”

The Secretary of the State Police Department has confirmed to NBC 5 that Carvana must deliver vehicles purchased by customers on or before July 18th.

Carvana first received a license suspension to sell cars in Illinois in May due to numerous complaints about vehicle titles and registrations. The main problem is Carvana’s delay in awarding vehicle titles to its customers. In some cases, delays push up to three months. Illinois law requires titles to be submitted within 20 days.

Carvana has also been investigated for allegedly issuing temporary out-of-state vehicle registrations to buyers whose in-state registrations expired.

Carvana had previously sent a statement to Motor1.com regarding the problem:

“Carvana has been operating dutifully as a licensed dealer and a good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State’s characterization of the facts and laws that led to this action. We are actively working with the State to resolve the issue. this, and they have agreed that we will continue to ship the vehicles already purchased. We hope to resolve this issue with minimal disruption to the customer.”