Carvana, known for its brightly lit “car vending machines”, had its dealer’s license suspended for the second time in two months on Monday after the company failed to get buyers their titles, according to the Illinois Secretary of State’s office.
Spokesman Henry Haupt also said Carvana unlawfully issued buyers temporary vehicle registrations from another state and issued them without going through a licensed remitter.
The Secretary of State’s office initially began investigating the Phoenix, Arizona-based company’s business practices in February after receiving scores of complaints from customers.
The state issued a suspension order against Carvana on May 10, but after lengthy negotiations, it lifted the suspension on May 26 allowing the company to resume conducting business in Illinois under strict guidelines.
A Carvana Vending Machine location in Novi, Michigan, U.S., on Wednesday, Nov. 3, 2021. Hertz Global Holdings Inc., fresh off a blockbuster order for 100,000 Teslas, reached an exclusive agreement to supply Uber drivers with electric vehicles and sig
The Secretary of State’s office said Monday it reinstatated the suspension after the company “continued to conduct business in a manner that violates Illinois law.”
During the suspension, Carvana will still be allowed to deliver vehicles that have already been purchased, but it will not be allowed to sell any new vehicles, Haupt said.
The suspension will remain in place until the company resolves all the issues, he said.
Signage outside a Carvana Vending Machine location in Novi, Michigan, U.S., in Novi, Michigan, U.S., on Sunday, Oct. 31, 2021. (Emily Elconin/Bloomberg via Getty Images)
“My top commitment is protecting the interests and well-being of Illinois consumers,” said Illinois Secretary of State Jesse White. “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 Secretary of State’s office urged any consumer who has issues with the title and registration of a vehicle purchased from Carvana to file a complaint with the Illinois Secretary of State Police at 630-693-0551.
FOX 32 reached out to Carvana for their response to this suspension, but have not yet heard back.