Carvana can do business in Illinois again after judge orders temporary reprieve

CHICAGO - A judge has ruled Carvana can do business in Illinois again after the state stripped the popular online car dealer of its license last month.

DuPage County Circuit Court Judge Bonnie M. Wheaton issued an order Friday that prohibits the Illinois Secretary of State's office from suspending or revoking Carvana's Dealer Certificates of Authority and dealer plates through Aug. 31.

Carvana, known for its brightly lit "car vending machines", had its dealer's license suspended on July 18 after the company failed to get buyers their titles, according to Henry Haupt, press secretary for the Secretary of State.

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Haupt said Carvana also unlawfully issued buyers temporary vehicle registrations from another state and issued them without going through a licensed remitter.

It was the Phoenix-based company's second suspension in Illinois.

A Carvana used car "vending machine" on May 11, 2022 in Miami, Florida. (Joe Raedle/Getty Images / Getty Images)

The state issued its first 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.

The company is now permitted to sell vehicles in Illinois through Aug. 31, when a status hearing is scheduled to determine how the case will proceed, according to the court order.

"Citizens of Illinois deserve exceptional customer experiences, and over 6,000 have already spoken up in support of keeping the Carvana car buying experience — including our 7-day money back guarantee, home delivery, and nationwide inventory selection — available in their state," a Carvana spokesperson said in a statement Monday.

"State records indicate there have been over 500,000 title transfer violations in Illinois over the past 3 years - Carvana represents significantly less than 1% of that total, and over other 90 IL dealers had more title transfer violations than Carvana.

"We believe this data indicates that while we aren’t perfect, we provide title and registration services at a rate among the top-performing dealers in the state. Carvana has built its entire business around customer experience and shares the State’s commitment to reducing paperwork challenges as much as possible."

"We sincerely appreciate the support from our Illinois customers and are excited to continue to serve them while we continue working with the State to resolve its concerns and hopefully improve the title and registration system itself for the benefit of everyone in Illinois who purchases a car.

Carvana opened its first and only location in Illinois in 2019 at 720 Enterprise Drive in west suburban Oak Brook.