Illinois suspends Carvana sales
Carvana’s license to sell vehicles in Illinois was suspended over the mishandling of vehicle registrations and titles.
“During the suspension order, Carvana may not sell vehicles in Illinois. 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,” according to Illinois Secretary of State spokesman Henry Haup. “The suspension will remain in place until the issues are resolved.”
This isn’t the first time Carvana has seen its license suspended. CBS17 reports Carvana’s North Carolina license was suspended for 180 days, beginning in August, and was reinstated in February. The North Carolina Department of Motor Vehicles claimed that in Wake County Carvana failed to deliver titles to the department, sold a vehicle without a state inspection, and issued an out-of-state temporary registration to a buyer that purchased the vehicle in North Carolina, according to CBS17.
Last week Carvana made the news after it laid off 2,500 employees, about 12% of its workforce.
Bottom Line: Bad news for Root.