Carvana Settles Dispute with State of Illinois

Carvana and the State of Illinois have agreed on a settlement for a regulatory dispute, which means the used car retailer can operate in the Land of Lincoln once again.

Automotive News reports the retailer admitted to violating state laws and agreed to comply with new restrictions. Should the auto retailer violate this agreement or state laws again, the Illinois Secretary of State can suspend and revoke Carvana’s dealer license for a third time.

“The admission by Carvana demonstrates what we know all along: that Carvana was violating the law in a manner that was harmful to Illinois customers,” Alex Giannoulia, Illinois Secretary of State, said in an announcement.

Illinois has suspended Carvana’s dealer license twice already and restricted the company’s operation in Illinois over vehicle registration and titling issues in 2022. The state first suspended Carvana’s license on May 10, 2022. The state alleged that Carvana failed to transfer titles for the vehicles it sold, and it improperly issued out-of-state temporary registration permits. Both actions are against Illinois law.

The state stayed the initial suspension on May 26^th but re-suspended Carvana’s license on July 18th. Carvana then filed for a temporary restraining order against the Secretary of State, which was granted by an Illinois judge in late July. Illinois has allowed Carvana to sell vehicles in the state with restrictions and was required to title vehicles through Illinois remitters that are licensed in the state to process title transactions.

The litigation began when the Secretary of State’s police department began investigating Carvana’s business practices after it received many consumer complaints about the retailer’s registration and titling practices and timeliness.

Carvana noted in a statement that it will continue to sell vehicles to Illinois residents via its website or vending machine in Oak Brook, a suburb of Chicago.

Originally posted on Auto Dealer Today