SPRINGFIELD, Ill. (WTVO) — The state of Illinois has suspended the license of online auto dealer Carvana after the company failed to properly transfer titles on vehicles it sold.
The company is also accused of misusing out-of-state temporary registration permits, according to Automotive News.
The Illinois Secretary of State opened an investigation into over 90 consumer complaints in February and said Carvana will have to “resolve the issues at hand” before the suspension can be lifted.
Carvana says it “strongly” disagrees with the state’s stance.
“Carvana has compliantly operated as a licensed dealer and good corporate citizen in the State of Illinois for several years, and we strongly disagree with the State’s characterization of both the facts and the law leading to this action,” a Carvana spokesperson said in a statement. “We are actively working with the State to resolve this issue, and they have agreed that we will continue delivering already purchased vehicles. We look forward to resolving this issue with minimal disruption to customers.”
Carvana allows customers to purchase a car completely online and have it delivered as soon as the next day or pick it up at one of its 17 car vending machines nationwide. Once delivered, the customer has seven days before committing to the purchase.
Carvana has also opened an eight-story vending machine in the Chicago suburb of Oak Brook. The vending machine holds 27 vehicles.
The company laid off 2,500 employees last week after experiencing slower-than-expected growth and a loss of $260 million in the first quarter of 2022.
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