Carvana Settles Dispute with State of Illinois
The used car retailer will continue to operate in Illinois under some restrictions.

The used car retailer will continue to operate in Illinois under some restrictions.
IMAGE: Pixabay
Carvana and the State of Illinois have agreed on a settlement for a regulatory dispute, which means the used car retailer can operate in the Land of Lincoln once again.
Automotive News reports the retailer admitted to violating state laws and agreed to comply with new restrictions. Should the auto retailer violate this agreement or state laws again, the Illinois Secretary of State can 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.
Illinois has suspended Carvana’s dealer license twice already and restricted the company’s operation in Illinois over vehicle registration and titling issues in 2022. The state first suspended Carvana’s license on May 10, 2022. The state alleged that Carvana failed to transfer titles for the vehicles it sold, and it improperly issued out-of-state temporary registration permits. Both actions are against Illinois law.
The state stayed the initial suspension on May 26th but re-suspended Carvana’s license on July 18th. Carvana then filed for a temporary restraining order against the Secretary of State, which was granted by an Illinois judge in late July. Illinois has allowed Carvana to sell vehicles in the state with restrictions and was required to title vehicles through Illinois remitters that are licensed in the state to process title transactions.
The litigation began when the Secretary of State’s police department began investigating Carvana’s business practices after it received many consumer complaints about the retailer’s registration and titling practices and timeliness.
Carvana noted in a statement that it will continue to sell vehicles to Illinois residents via its website or vending machine in Oak Brook, a suburb of Chicago.
Originally posted on Auto Dealer Today
More Industry

Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →