Carvana Again Suspended From Selling Cars In Illinois

SPRINGFIELD, IL — State regulators on Monday reinstated the suspension of online used car dealer Carvana's license to sell vehicles in Illinois, officials said.

Cars that have been purchased but not yet delivered may still be delivered, abut no new vehicle sales can take place in Illinois, according to the Illinois Secretary of State's Office.

“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 do everything we can to ensure that every customer is properly served.”

The temporary suspension order was first put in place on May 10, but it had been stayed as of May 26, which allowed Carvana to continue conducting business in Illinois under certain guidelines, according to a spokesperson for White's office.

The publicly traded Tempe, Arizona-based company had to post a $250,000 bond to ensure that it would be able to pay any fines or fees assessed to customers as a result of the company's failures to follow the law.

Since the agreed order to stay the suspension, Carvana has continued to violate Illinois law, including by giving Illinois residents out-of-state temporary registration plates in violation of the May agreement, according to Secretary of State spokesperson Henry Haupt.

"This is illegal," Haupt said.

Carvana has also violated the agreement by failing to go through a licensed remitter, Haupt said. Plus, he said, it has failed to process title and registration paperwork through the Secretary of State's Office upon sales to Illinois law — also required by Illinois law.

Patch requested comment from Carvana representatives about the allegations and latest suspension. Any response received will be added here.

The suspension originally resulted from a police investigation by the Secretary of State's Office that was first opened in February 2022 — the same month Skokie village trustees approved a controversial zoning amendment to allow for Carvana to build a proposed 14-story glass tower — on Woods Drive between the Edens Expressway and a Cook County forest preserve.

Carvana has operated an eight-story "car vending machine" tower in Oak Brook since 2019. Skokie village officials have said the project is on hold until the matter of Carvana's state licensing is "completely resolved."

The company's stock is down 90 percent since the start of the year. Analysts tell the Wall Street Journal they expect "pretty terrible second quarter" results when the company announces them Aug. 4.

White's office encouraged any customers who have issues with their title or registration for a car purchased from Carvana to contact the Secretary of State Police at 630-693-0551 to file a complaint and get help transferring the title.

According to the secretary of state's office, an administrative hearing on the suspension has been scheduled for Aug. 30.

Related:

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