Carvana’s problems are growing after the loss of the license to sell cars in Illinois due to problems with the name

It was an interesting start to 2022 Caravan and a new decision in Illinois only complicates his future. After about 90 property rights and registration complaints were filed with the state, Carvana can now sell more vehicles in Illinois until it resolves those issues.

The Illinois Police Department actually launched an investigation into the title and registration back in February this year Crain’s Chicago Business. As a result of this investigation, the signed complaints were reviewed and then used as grounds for suspension. The state says it has found several Carvana customers who have been waiting four to six months to confirm ownership.

Buyers who have already purchased the car through Carvana in Illinois can still pick it up, but new sales will not be allowed until further notice. For its part, Carvana has already responded to the suspension.

Related: Carvana fires 12% of its workforce the same day it buys an opponent at auction for $ 2.2 billion

“Carvana has been operating as a licensed dealer and good corporate citizen in Illinois for several years, and we strongly disagree with the state’s characterization of both the facts and the law that led to this action,” a Carvana spokesman said in a statement. .

“We are actively working with the state to resolve this issue, and they have agreed that we will continue to supply the already purchased equipment. We look forward to solving this problem with minimal obstacles for customers, ”they continued.

Of course, this is not very helpful for those who have already received tickets to Illinois due to overdue registrations. This was announced by spokesman for the Illinois Police Department Henry Haupt Auto news that the victims must pay these fines and that the Secretary of State will cooperate with Carvana to compensate them.

He added that there is no specific date or time when the suspension will be lifted. Before that, the used car company will have to “solve the existing problems.” This is just the latest version somewhat negative press for Carvana.

In Florida, Carvana barely avoided the suspension after the vast majority of nearly 400 undelivered property applications were resolved in February. He also reported losses of $ 506 million for the first quarter of 2022. Now we need to see how this latest blow will affect his long-term success.