Online car dealer Carvana banned from Illinois for second time

Online car dealer Carvana banned from Illinois for second time

Car dealer Carvana has been banned from doing business in Illinois due to problems with consumers receiving vehicle registrations and titles. This is the second time in two months that the company has been hit by a ban.

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

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

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

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A Carvana vending machine in Maryland

A logo sign outside a Carvana ATM in Gaithersburg, Maryland, February 10, 2019. (Kristoffer Tripplaar / Sipa / Reuters pictures)

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 that the suspension against Carvana was reintroduced 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 banned from selling new cars.

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Carvana sells cars in Michigan

Signage outside a Carvana vending machine in Novi, Michigan. (Emily Elconin / Bloomberg via Getty Images / Getty Images)

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

The State Department’s Office urged buyers who have encountered problems with the 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 are inside the Carvana Co. vending machine in Frisco, Texas, on Thursday, June 8, 2017. (Laura Buckman / Bloomberg via Getty Images / Getty Images)

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“My greatest commitment is to protect the interests and well-being of Illinois consumers,” said Illinois Secretary of State Jesse White. “I applaud the Illinois State Secretary 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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