NBC 5 Responds

For The Second Time, Carvana is Banned From Selling Cars in Illinois

The Illinois Secretary of State’s office tells NBC 5 Responds it has suspended Carvana’s license for a second time, meaning the Fortune 500 company cannot sell cars in the state

NBC Universal, Inc.

For the second time in two months, a popular used car company is again banned from selling in the state of Illinois.

Carvana is known for its modern approach to selling cars with its towering vending machines and quippy TV ads.

But in the last two months, the company’s dealer's license has been suspended twice by state officials here in Illinois.

The Illinois Secretary of State’s office tells NBC 5 Responds it has suspended Carvana’s license for a second time, meaning the Fortune 500 company cannot sell cars to customers in Illinois.

“My top commitment is protecting the interests and well-being of Illinois consumers,” reads a statement from 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.”

Problems first arose for Carvana after the state said it had received scores of customer complaints over delayed title transfers and apparent misuse of out-of-state temporary tags.

The complaints mirror those from customers who contacted NBC 5 Responds for help this year. 

Joe Raedle | Getty Images
Illinois officials said the state received more than 90 consumer complaints over the company’s unexplained misuse of out-of-state temporary tags.

After the state issued its suspension order on May 10, and after negotiations with the company, the Secretary of State issued a stay order effectively lifting the suspension order so long as Carvana followed strict guidelines.

Those guidelines included no longer issuing out-of-state tags for new vehicle sales.

The Secretary of State's office said on Monday, the company had failed to meet those guidelines and “continued to conduct business in a manner that violates Illinois law,” a spokesperson said.

Carvana did not respond to NBC 5's request for comment on the new suspension order early this afternoon.

The new move by regulators will not impact sales made on or prior to July 18.

“Vehicles that have already been purchased, but not yet delivered can still be delivered to the purchasers during the suspension, but no new vehicle sales can occur in Illinois during the suspension order,” the Secretary of State announced on Monday. “The suspension will remain in place until the issues are resolved.”

NBC 5 Responds has heard from many customers who said after purchasing cars from Carvana, they waited months for license plates.

Many customers have told state regulators, and NBC 5 Responds, they waited months for a title or registration on their vehicle from CARVANA, something that normally should take days to receive. Lisa Parker has the story.

Customers like Christine Trinidad out of Romeoville, who said she waited 201 days for the title of her 2018 Jaguar XF.

“I was concerned that this car may not be registered correctly and that I could get in trouble,” Christine told NBC 5. “It was stressful.”

Christine is one of seven Carvana customers here in Illinois who reached out to NBC 5 Responds with similar stories.

NBC 5 Responds resolved their issues after contacting Carvana directly, but those same customers are worried about others out there, unaware of the problem.

The Illinois Secretary of State said customers having issues with a Carvana title or registration are urged to file a complaint with the state by calling the Illinois Secretary of State Police at 630-693-0551.

Do you have a consumer complaint? If so, NBC 5 Responds would like to hear from you. Call 1-844-NBC-RESP or click here to let us know, so we can help.

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