Carvana again loses license to sell cars in Illinois

Carvana is in a rut again as she faces another license suspension in the state of Illinois. It’s the second time in two months that the online used-car company has come under fire from state regulators following a similar penalty handed down towards the end of May.

According to a NBC 5 report, Carvana’s license suspension went into effect July 18, 2022. The Fortune 500 company will no longer be able to sell cars in the Prairie state from that date until it resolves the complaints filed by the state.

The current complaints still relate to the initial issues Carvana faced, which involved delayed title transfers and the alleged issuance of temporary out-of-state vehicle registrations for hundreds of Illinois customers.

Worse still, customers who purchased the car before the aforementioned date complained that the company was unable to complete the delivery of their cars. According to one of the customers who contacted NBC 5Carvana said the delay was “due to the dispute with the secretary of state’s office.”

Said customer purchased a car in June and was due to receive the unit last week. The company’s customer service told the client that “they’re not delivering any cars to Illinois right now…I’m pretty frustrated with the whole process.”

The Secretary of State’s Police Department confirmed NBC 5 that Carvana must deliver the vehicles that customers have purchased by July 18 at the latest.

Carvana first received a suspension of its license to sell cars in Illinois in May following numerous complaints about vehicle titles and registrations. The main problem was Carvana’s delay in providing vehicle titles to its customers. In some cases, the delay pushes up to three months. Illinois law requires that securities be delivered within 20 days.

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

Carvana has already sent a statement to Motor1.com about the problem:

“Carvana has operated in full compliance as an authorized dealer and good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State’s characterization of the facts and law leading to this action. We are actively working with the state to resolve this issue, and they have agreed that we will continue to deliver previously purchased vehicles. We look forward to resolving this issue with minimal disruption to customers.

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