Carvana Hits More Legal Snags in Illinois

Steven Tobin
by Steven Tobin

Internet auto retailer Carvana had previously been granted a license to build an 11-story car tower in the Chicago suburb of Skokie, but that is now on hold pending legal issues the auto dealer is having with the proper licensing and plating of vehicles it sells to people in Illinois.

I had previously interviewed Skokie Village trustee James Johnson on the building of the tower, which he has opposed, and I did confirm with him that Skokie has in fact communicated with Carvana regarding the latest suspension of its license to sell cars in Illinois.

The Village of Skokie has reserved the right to postpone the building of the Carvana car tower in Skokie if there are any other legal issues and lack of compliance with the state’s legal requirements.

Carvana has had problems with issuing temporary plates as well as getting customers their titles in a timely manner. These issues have caused the Illinois Secretary of State to suspend Carvana’s license to sell vehicles in the state.

The Illinois Secretary of State’s office announced last week, "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 village has issued a legal declaration from its Corporation Counsel, which can be accessed here.

[Image: Carvana]

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Steven Tobin
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  • SCE to AUX SCE to AUX on Jul 28, 2022

    Summary: If Carvana can improve its document processing system and get right with the State of Illinois, it can probably construct its new tower in Skokie Village.

    I didn't know Carvana had a problem with this; is this issue peculiar to Illinois, or is it nationwide?

    • See 2 previous
    • TheEndlessEnigma TheEndlessEnigma on Jul 29, 2022

      @SPPPP, I might buy that if Carvana was indeed a "startup" however they have been in business since 2012.

  • Cprescott Cprescott on Jul 28, 2022

    I've purchased one car from CarMax and the vehicle has been great for 3 plus years. I have always felt that Caravana was a gimmick and would never buy from them. Turns out they are too good to be true.

    • See 1 previous
    • MaintenanceCosts MaintenanceCosts on Jul 29, 2022

      CarMax is the Apple of used cars: expensive, but reliable, easy to use, and usually without nasty surprises.

  • AK AK on Jul 29, 2022

    I dealt with this exact problem when I bought from one of the bigger dealers in the Chicago area- Bob Rohrman. My title transfer was never filed which I only found out a year after buying the car and I couldn't re-new my plates. Had to get the Secretary of State Police involved. They told me it happens all the time with Rohrman.

  • Rick T. Rick T. on Jul 29, 2022

    Maybe they should just go over to Niles and renovate/repurpose the Leaning Tower.