Illinois banned used car dealer Carvana for the second time in three months over issues with title transfers and out-of-state permits.
The state initially banned Carvana on May 10 due to customer complaints; the ban was lifted on May 26 following negotiations between the company and state officials.
Illinois has reinstated the ban, saying Carvana “was not transferring titles within 20 days of sale nor issuing Illinois temporary registrations to Illinois buyers. … Carvana would [also] issue temporary registrations up to four to five times from different states for the same vehicle,” as reported by Automotive News.
Automotive News said Carvana hadn’t responded to a request for comment.
The Illinois secretary of state told Chicago’s NBC 5 WMAQ-TV that Carvana had failed to meet the negotiated guidelines.
“Vehicles that have already been purchased, but not yet delivered can still be delivered to the purchasers during the suspension, but no new vehicle sales can occur in Illinois during the suspension order,” the secretary of state’s office said, according to NBC 5.
Carvana, known for its vending machine towers, has faced similar challenges in other states. The company avoided a similar ban in Florida by meeting a Jan. 31 deadline to process outstanding title applications.
Carvana faces pressure to cut costs as demand wanes and interest rates rise. As a result, “its stock has plummeted from a high of $370 last August to $22.25. In May, Carvana said it would lay off about 2,500 employees, or 12 percent of its workforce,” according to Automotive News.