Carvana Settles Dispute with Illinois After Its Dealer License Was Revoked Twice

If Carvana slips up again, Illinois regulators can revoke the dealer's license for a third time.

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A Carvana used car "vending machine" displays vehicles on December 09, 2022 in Miami, Florida.
Photo: Joe Raedle (Getty Images)

Once again, Carvana is fully back in business in Illinois. The online used car retailer and the state agreed to settle a long-running regulatory dispute, and now Carvana can operate in the Land of Lincoln with a clear conscience.

Automotive News reports that the retailer admitted to violating Illinois state law and has agreed to comply with new restrictions. If Carvana slips up (which it has been known to do in the past) and violates the agreement or state laws, the Illinois Secretary of State has the power to suspend and revoke Carvana’s dealer license for a third time.

“The admission by Carvana demonstrates what we know all along: that Carvana was violating the law in a manner that was harmful to Illinois customers,” Alex Giannoulia, Illinois Secretary of State, said in an announcement.

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The used car retailer’s dealer license has already been twice suspended and restricted by Illinois due to vehicle registration and titling issues that cropped up in 2022. According to Auto News, the license was first suspended by the Illinois Secretary of State on May 10, 2022. They alleged Carvana failed to correctly transfer titles for vehicles it sold, and it improperly issued out-of-state temporary registration permits. Both of these things are big no-no’s in the eyes of Illinois law.

The outlet reports that the state stayed that initial May 10th suspension on May 26th. However, Illinois re-suspended Carvana’s license on July 18th. After that, Carvana filed for a temporary restraining order against the Secretary of State, and that was granted by an Illinois judge in late July. Since then, Carvana has reportedly been allowed to sell vehicles with some restrictions, and it was required to title vehicles through Illinois remitters – third party companies that are licensed in the state to process title transactions.

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This all began when the Secretary of State’s police department started investigating Carvana’s shady business practices a few months earlier in February of 2022. It first started after receiving numerous consumer complaints about its registration and titling practices and timeliness.

In Carvana’s own statement, the retailer said it would continue to sell vehicles to Illinois residents either via its website or through its not-at-all-dumb vending machine in Oak Brook, a suburb of Chicago.