Carvana Back in Hot Water With State of Illinois, License Suspension Reinstated

A rendering of Carvana’s proposed 14-story tower in Skokie. (Village of Skokie)A rendering of Carvana’s proposed 14-story tower in Skokie. (Village of Skokie)

Update: On July 29, a ruling from a circuit court judge in DuPage County put Carvana back in business through Aug. 31, when a status hearing will take place.

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Online used-car dealer Carvana has once again run afoul of the Illinois Secretary of State’s office, which reinstated a temporary suspension of the company’s dealer’s license in Illinois.

The new order went into effect July 18 and until it’s lifted, Carvana is prohibited from selling vehicles in Illinois.

previous suspension had been stayed as of May 26, allowing Carvana to conduct business in Illinois under strict guidelines. Breaches of those guidelines prompted the latest suspension. Among the violations, according to the Secretary of State’s office:

—  Issuing temporary registration plates of another state to Illinois residents, which is illegal.

— Issuing temporary registration plates without going through a licensed remitter as required by the stay agreement.

— Failing to process title and registration paperwork through the Secretary of State upon sale of a vehicle to Illinois customers, as is required by Illinois law.

Vehicles purchased prior to the suspension can still be delivered to buyers, officials said.

Consumers experiencing issues with their title and registration should contact the Illinois Secretary of State Police at 630-693-0551 to file a complaint. Staff members will provide assistance in getting the title transferred.

The reinstated suspension and ongoing issues regarding its business operation continue to thwart Carvana’s plan to construct a 14-story glass tower — dubbed a car vending machine — in Skokie.

Approved in February by the Village Board of Trustees despite widespread community opposition, the tower remains on hold until Carvana resolves its issues with the state of Illinois, a village spokeswoman told WTTW News.

“The project has not broken ground,” Ann Tennes said via email. “The Village is not in communication with Carvana at this time.”

Following the DuPage County legal decision, a Carvana spokesperson shared a statement with WTTW News, noting: "State records indicate there have been over 500,000 title transfer violations in Illinois over the past three years. Carvana represents significantly less than 1% of that total."

More than 90 other Illinois dealers had more title transfer violations than Carvana, according to the spokesperson. "We believe this data indicates that while we aren’t perfect, we provide title and registration services at a rate among the top-performing dealers in the state," she said, adding that the company continues to work with Illinois officials to resolve concerns and "hopefully improve the title and registration system itself for the benefit of everyone in Illinois who purchases a car."

Contact Patty Wetli: @pattywetli | (773) 509-5623 |  [email protected]

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