Carvana, Illinois, dispute over vehicle ownership and registration settled


Illinois Secretary of State Alexi Giannurias acknowledged that online auto retailer Calvana violated Illinois law regarding the timely issuance of vehicle ownership and registrations, to protect consumers. said it agreed to abide by its enhanced rules.

The agreement ensures that Carvana can continue to operate in Illinois and ends a legal dispute that began when the Secretary of State suspended its business license last May. However, the company opposed the lawsuit in court, so sales continued.

As part of the deal, Carvana forfeited a $250,000 security deposit and agreed to an additional license check by the state police commissioner, Giannoulias said. He also said his office could immediately suspend or revoke his Carvana dealer license if further problems were reported.

State officials have accused Carvana of failing to obtain vehicle ownership for some customers within the 20-day deadline set by state law, with some customers waiting four to six months for documents. It is said that Officials also said Carvana illegally gave some buyers temporary vehicle registrations from another state to replace expiring registrations in Illinois.

As a result, some people were ticketed for not having a valid registration. Giannoulias spokesman Henry Haupt said the forfeited bonds will be used to help clients recover their losses.

“Individuals who have been fined for registering late are encouraged to contact the Secretary of State at (630) 693-0551 for more information,” Haupt said in an email.

Carvana delivers cars directly to customers, but is also known for brightly lit “vending machines” where buyers can collect cars. One was in Oak Brook and another of his was proposed to Skokie, but the company’s financial difficulties cast doubt on its ability to expand.

Carvana, which is heavily indebted, says it has laid off employees as its used car inventory has fallen in value, leading to higher losses. The company’s stock lost about 96% of its value last year, and some analysts speculate the company may declare bankruptcy.

“Carvana’s approval shows what we knew all along: Carvana was violating the law in a way that was harmful to Illinois consumers,” Giannoulias said. “Under my administration, I will do everything in my power to ensure that appropriate safety measures are in place regardless of how Illinois consumers purchase their vehicles.”

A statement from Carvana did not directly address the complaint. “For the past eight years, we have become the economic engine of our state by providing Illinoisans with an unparalleled e-commerce experience, including superior product selection, home delivery, a 7-day money-back guarantee, and today’s agreement with the Secretary of State. Alan Hoffman, Carvana’s head of corporate affairs, said:

“We look forward to working with Commissioner Giannurias to ensure that our customers continue to have the best possible car buying experience.”

Carvana is working to resolve lingering issues with ownership and registration, according to people close to the situation. Customers experiencing issues should call (800) 333-4554.

Carvana has had regulatory issues in other states. Similar title and registration issues have been reported in North Carolina, Michigan, and Florida.

Company executives say such issues are affecting some customers. Carvana has improved staff training and technology to better comply with state laws, they said.

The company declined to discuss its financial situation and the implications for future operations in Illinois.

Carvana’s Illinois law issues relate to several misdemeanor lawsuits pending in DuPage County against Paul Breaux, who is listed online as Carvana’s legal counsel.

DuPage County attorney Robert Berlin’s spokesman Paul Dollar said the Carvanagh settlement with the state would not affect the case. He said he had no position on how it should be handled.


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Written by Natalia Chi

Chicago Popular; Chicago breaking news, weather and live video. Covering local politics, health, traffic and sports for Chicago, the suburbs and northwest Indiana.

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