Online car retrailer Carvana can once again sell used cars in Illinois and issue temporary tags to buyers. Yesterday, the company reached a settlement agreement with the Illinois Secretary of State that restores its business license.
Carvana lost its license to sell cars in Illinois twice last year over complaints that the company sometimes failed to provide owners with titles to their new cars. In some cases, it illegally issued temporary out-of-state registrations to Illinois buyers.
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Without a title, a buyer can’t prove they own the car. In some states, they can’t even insure it. They are at risk of tickets and fines.
Under a previous agreement, Carvana had resumed selling cars in Illinois. But the deal required the company to work through third parties to register cars and process title transactions.
The company can now resume issuing temporary registrations and processing titles itself. In exchange, it admitted to wrongdoing and agreed to regular inspections to ensure it has the titles to the cars it sells and provides them to buyers promptly.
The company also paid a $250,000 bond. The state will use the money to help resolve title problems for past Carvana customers in Illinois.
In a statement, Illinois Secretary of State Alexi Giannoulias said, “The admission by Carvana demonstrates what we knew all along: that Carvana was violating the law in a manner that was harmful to Illinois consumers.”
He urged Illinois Carvana customers with title and registration issues to “contact the Illinois Secretary of State Police at 630-693-0551 to file a complaint. The Secretary of State Police will take action to get the title transferred.”
