Online car dealer Carvana banned from Illinois for the second time

Online car dealership Carvana is prohibited from doing business in Illinois due to issues with consumers receiving vehicle registrations and titles. It is the second time in two months that the company has been banned.

The Illinois Secretary of State’s office said Monday that the company’s dealer license had been suspended because car buyers did not receive their titles. The title of a car is essential as it proves ownership of the vehicle. Furthermore, the vehicle may not be driven or sold without title.

Secretary of State spokesman Henry Haupt told Fox32 that Carvana had unlawfully issued temporary vehicle registrations from consumers from other states, without using an authorized sender.

The company’s business practices have been under investigation by the Secretary of State’s office since February following a number of customer complaints.

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A Carvana car vending machine in Maryland

A logo sign outside a Carvana auto vending machine in Gaithersburg, Maryland, on Feb. 10, 2019. (Kristoffer Tripplaar/Sipa/Reuters Photos)

The state had suspended Carvana’s business on May 10, but lifted the restriction on May 26 after lengthy negotiations. This allowed the dealer to resume sales in Illinois under strict guidelines.

The secretary of state’s office said Monday that the suspension against Carvana was reinstated after the company’s business practices continued “in a manner contrary to Illinois law.”

Haupt said Carvana is still allowed to supply vehicles that have already been purchased, but it is prohibited from selling new cars.

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Signage outside a Carvana Vending Machine location in Novi, Michigan. (Emily Elconin/Bloomberg via Getty Images/Getty Images)

He said the suspension will remain in effect until the company resolves all existing issues.

The Office of the Secretary of State encouraged buyers who have experienced problems with the title and registration of their vehicle purchased from Carvana to file a complaint with the Illinois Secretary of State.

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Cars in a Carvana vending machine

Vehicles will be in Carvana Co.’s auto vending machine on Thursday, June 8, 2017. in Frisco, Texas. (Laura Buckman/Bloomberg via Getty Images/Getty Images)

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“My greatest commitment is to protect the interests and well-being of Illinois consumers,” said Illinois Secretary of State Jesse White. “I applaud the Illinois Secretary of State for their continued efforts to protect customers. We will continue to do everything we can to ensure that every customer is well served.”