Carvana Is Back In Business After Having License Suspended

Industry News / Comments

An Illinois judge granted the online dealer's injunction against the Secretary of State.

Carvana is back to selling cars in Illinois again after a state judge granted the online retailer permission to resume business activities. Late last month, the Illinois Secretary of State revoked the company's license to sell vehicles in Illinois after the company wasn't adhering to state requirements. Not only was Carvana not transferring vehicle titles within the specified 20 days, but it was also found to be issuing improper temporary registrations.

The sudden change comes after Carvana filed a motion for injunctive relief and a temporary restraining order against Secretary of State Jesse White, reports Automotive News. According to Judge Bonnie Wheaton, the department is prohibited from "suspending or revoking" the chain's certificates of authority and dealer plates. We don't expect local government officials to back down without a fight but, for now, Carvana emerges victorious.

gocarvana/Instagram

Court records indicate the upcoming action is scheduled for August 30, where things may change yet again. In an email sent to Automotive News, Illinois Secretary of State Dave Druker said, "Due to the judge's decision in the circuit court in DuPage County to grant Carvana's request for a temporary restraining order, the Secretary of State's order has been reinstated, allowing Carvana to conduct business in Illinois under strict guidelines."

Druker continued, noting that while Carvana is permitted to sell vehicles to state residents, it may not issue temporary registration permits or license plates at this time. Druker also noted that Carvana is expected to register titles through third parties called remitters, in order to process the title transactions.

https://www.instagram.com/p/CdIqbnOMyk1/?hl=en

For now, Carvana couldn't be more elated with the outcome. In a company statement, a spokesperson extended gratitude to Carvana's Illinois customers and said the dealer is "excited to continue to serve them while we continue working with (Illinois SOS) to resolve its concerns and hopefully improve the title and registration system itself for the benefit of everyone in Illinois who purchases a car."

This isn't the first time the online dealer is landed itself in hot water. In 2021, the company suffered bad press over a similar issue, after a group of customers complained about not receiving their plates in time. One customer who purchased a Hyundai Elantra waited more than 455 days for her tags; not a good look for a car dealer that prides itself on customer care.

To add insult to injury, Carvana suffered some embarrassment after a video of a failed delivery went viral earlier this year.

Join The Discussion

Gallery

1
Photos

Related Cars

Back
To Top