$250,000 Bond To Allow Carvana To Sell Cars In Illinois Again

CHICAGO — Online used car dealer Carvana can resume selling cars in Illinois following a decision Thursday by the Illinois Secretary of State's Office.

The Secretary of State's Office placed a stay on the temporary suspension order it issued against the publicly traded Arizona-based company earlier this month, citing a failure to transfer titles and "misuse" of out-of-state temporary registration permits.

“My top commitment is protecting the interests and well-being of Illinois consumers,” Secretary of State Jesse White said in a statement. “I applaud the Illinois Secretary of State Police for their ongoing efforts to protect customers. We will continue to work with Carvana in a concerted effort to ensure that every customer is properly served.”

The stay order is a "small step forward" that lets the company operate on a limited basis while the process continues, according to office spokesperson Henry Haupt.

Under the terms of the stay, Carvana must post a $250,000 bond to guarantee the payment of any fines or fees customers are charged as a result of the company's failure to follow the law, Haupt said.

The stay was granted because Carvana has brought its title transactions into compliance with the Secretary of State's Office, according to the spokesperson. The Secretary of State's police force, he said, can reinstate the suspension order at any time.

"While all of the violations have not been corrected, the Secretary of State Police are working to resolve all existing complaints against Carvana. The Secretary of State’s office will also continue to carefully review Carvana’s paperwork, ensuring that the business stays in compliance," Haupt said.

Haupt said Carvana may resume selling cars to Illinois residents, but the company is forbidden from issuing temporary registration permits or license plates during the stay order. Instead, it must register titles through third-party entities licensed in Illinois.

"This will ensure titles are processed expeditiously," he said.

In Illinois, Carvana operates a tower in Oak Brook and has received permission to build a tower in Skokie, despite vocal opposition from bird advocates and area residents.

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Following the issuance of the stay order, Skokie village officials notified Carvana that its project — set to be built on Woods Road between the Edens Expressway and Harms Woods — would be considered in violation of village code and ordinance until it comes into compliance with the demands of state agencies.

Asked whether Carvana company officials believe it is now in compliance with Skokie's Village Code, a spokesperson provided a statement on behalf of the firm asserting that it had "resumed normal service" in Illinois.

"Carvana delivered all previously purchased vehicles during this recent period," it said, "as we discussed the situation with the State."

A Skokie village spokesperson said local officials have not changed their position and the project remains on hold until a state hearing next month.

Related:

• Skokie Carvana Tower On Hold After Suspension Of Illinois License
• 'Right-Sizing' Carvana Won't Say If It Still Plans To Build Skokie Tower
• Critics Cry Fowl As Skokie Trustees Welcome Carvana Tower