Online car dealer Carvana banned from Illinois for second time

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Online car dealer Carvana has been barred from doing business in Illinois over issues with consumers receiving vehicle registrations and titles. This is the second time in two months the company has been hit with a ban.

The Illinois Secretary of State’s office said Monday the company’s dealer’s license had been suspended because car buyers did not receive their titles. A car’s title is essential, as it proves ownership of the vehicle. Furthermore, the vehicle cannot be driven or sold without a title.

Secretary of State spokesman Henry Haupt told Fox 32 Carvana unlawfully issued consumers temporary vehicle registrations from other states, and had done so without using a licensed remitter.

The company’s business practices have been under investigation from the Secretary of State’s office since February following a number of customer complaints.

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A Carvana car vending machine in Maryland

A logo sign outside of a Carvana car vending machine in Gaithersburg, Maryland, on February 10, 2019. (Kristoffer Tripplaar/Sipa / Reuters Photos)

The state had suspended Carvana’s business operations on May 10, but lifted the restriction on May 26 after lengthy negotiations. This allowed the dealer to resume sales in Illinois under strict guidelines.

The Secretary of State’s office said Monday the suspension against Carvana was reinstated after the company’s business practices continued “in a manner that violates Illinois law.”

Haupt said Carvana will still be allowed to deliver vehicles that have already been purchased, but will be prohibited from making any new car sales.

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Carvana selling cars in Michigan

Signage outside a Carvana Vending Machine location in Novi, Michigan. (Emily Elconin/Bloomberg via Getty Images / Getty Images)

He said the suspension will remain in place until the company fixes all the existing issues.

The Secretary of State’s office encouraged buyers who have encountered issues with their vehicle’s title and registration purchased from Carvana to file a complaint with the Illinois Secretary of State Police.

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Cars in a Carvana vending machine

Vehicles sit inside the Carvana Co. car vending machine in Frisco, Texas, on Thursday, June 8, 2017. (Laura Buckman/Bloomberg via Getty Images / Getty Images)

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“My top commitment is protecting the interests and well-being of Illinois consumers,” Illinois Secretary of State Jesse White said. “I applaud the Illinois Secretary of State Police for their ongoing efforts to protect customers. We will continue to do everything we can to ensure that every customer is properly served.”

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