Carvana allowed by Illinois to operate on a limited basis

Carvana allowed by Illinois to operate on a limited basis

The Illinois Secretary of State’s office on Thursday implemented a stay on its May 10 order that Carvana Co. suspend vehicle sales in the state.

The stay will allow Carvana to sell vehicles in Illinois as long as it follows “strict guidelines.”

But the online used-vehicle giant still has limitations. Carvana won’t be allowed to issue temporary registration permits or license plates, according to an email from Henry Haupt, spokesman for the Illinois Secretary of State’s office.

Carvana is now required to register titles through Illinois remitters — third-party entities licensed in the state to process title transactions. The retailer also must post a $250,000 bond “to guarantee payment of any fines or fees incurred by customers that resulted from Carvana’s failure to follow the law,” Haupt said in the email.

“My top commitment is protecting the interests and well-being of Illinois consumers,” Illinois Secretary of State Jesse White said in a statement. “I applaud the Illinois Secretary of State Police for their ongoing efforts to protect customers. We will continue to work with Carvana in a concerted effort to ensure that every customer is properly served.”

White’s office temporarily blocked Carvana’s dealer license earlier this month, alleging the company failed to properly transfer titles for vehicles it sold and misused the issuance of out-of-state temporary registration permits.

“We’re pleased to report that we’ve resumed normal service in the State of Illinois,” Carvana said in a statement. “Carvana delivered all previously purchased vehicles during this recent period as we discussed the situation with the State. We aim to continue demonstrating how our customer-centric business model is transforming the experiences and expectations of buyers and sellers of used cars.”

Not all the violations Carvana was cited for have been corrected, according to Haupt. There are still existing complaints from consumers about Carvana that the Illinois Secretary of State police are working to resolve, Haupt said in his email.

Carvana’s paperwork will remain under review, and the Secretary of State’s police department can reinstate the suspension order at any point, Haupt said.

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