Carvana banned from doing business in Illinois over registration, title issues

Illinois suspends business license for used car retailer Carvana

The online used car retailer Carvana has been banned from further doing business in Illinois until the company can resolve issues with getting buyers vehicle registrations and titles. 

Illinois Secretary of State office said Monday it suspended Carvana’s license to operate in the state after investigating consumer complaints. 

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CVNA CARVANA CO. 109.15 -0.76 -0.69%

The Phoenix, Arizona-based company failed to get buyers their titles withing a 20-day period specified under law, and in some cases were between four and six months late, Henry Haupt, spokesman for the Illinois Secretary of State, said, according to FOX 32 Chicago. He said Carvana unlawfully issued purchasers temporary vehicle registrations from other states, causing some customers to be ticketed after those temporary registrations expired after 90 days. 

Carvana car dispensing machine

Signage outside a Carvana Vending Machine location in Novi, Michigan, on Sunday, Oct. 31, 2021.  (Emily Elconin/Bloomberg via Getty Images / Getty Images)

A spokesperson for Carvana told FOX 32 Chicago the company strongly disagrees "with the state’s characterization of both the facts and the law leading to this action," adding that Carvana is working to resolve the current problems "with minimal disruption to customers."


Barrons reports the company was having similar difficulties with registrations and titles in North Carolina, Michigan and Florida. This comes after Carvana announced last week it was laying off 2,500 employees, which makes about 12% of its workforce and executives would forfeit their salaries for the rest of the year in order to fund severance. The company said it lost $506 million during the first quarter of 2022, representing a deficit six times greater than results in the same timeframe last year.