Online car dealership Carvana banned from Illinois for second time
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Online car dealership 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 dealership license was suspended because car buyers did not receive their titles. A car’s title is important, 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 illegally issued consumers temporary vehicle registrations from other states, and had done so without using a licensed dispatcher.
The company̵[ads1]7;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 logo sign outside a Carvana 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 retailer to resume sales in Illinois under strict guidelines.
The secretary of state’s office said Monday that 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 already purchased, but will be prohibited from selling new cars.
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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 Secretary of State’s office urged buyers who have encountered problems 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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Vehicles sit inside the Carvana Co. car vending machine in Frisco, Texas, 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.”
