Carvana is in a rut again as it faces another license suspension in the state of Illinois. This is the second time in two months that the online used car company has received flak from the state regulators following a similar sanction issued towards the end of May.
According to an NBC 5 report, Carvana's license suspension was effective on July 18, 2022. The Fortune 500 company won't be able to sell cars in the Prairie State from that date forward, until it resolves the complaints filed by the state.
The current complaints are still connected to the initial issues that Carvana faced, which involved delayed title transfers and the alleged issuance of out-of-state temporary vehicle registrations for hundreds of Illinois customers.
Worse, customers who bought the car before the aforementioned date have been complaining that the company wasn't able to complete delivery of their cars. According to one of the customers who contacted NBC 5, Carvana said that the delay was "due to the dispute with the Sec. of State’s office."
The said customer purchased a car in June and was supposed to receive the unit last week. The company's customer service told the customer that "they are not delivering any cars in Illinois right now… I’m pretty frustrated with the whole process."
The Secretary of State's Police Department has confirmed to NBC 5 that Carvana should deliver vehicles that customers purchased on or prior to July 18.
Carvana first received a suspension of its license to sell cars in Illinois back in May over numerous complaints regarding vehicle titles and registrations. The main issue was Carvana's delay in providing vehicle titles to its customers. In some cases, the delay pushes up to three months. Illinois law requires titles to be delivered within 20 days.
Carvana has also been investigated for allegedly issuing out-of-state temporary vehicle registrations to buyers whose in-state registrations expired.
Carvana has previously sent a statement to Motor1.com regarding the issue:
"Carvana has compliantly operated as a licensed dealer and good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State’s characterization of both the facts and the law leading to this action. We are actively working with the State to resolve this issue, and they have agreed that we will continue delivering already purchased vehicles. We look forward to resolving this issue with minimal disruption to customers."