Oak Brook Village President Gopal Lalmalani said Tuesday that he is hopeful Carvana will resolve its difficulties with the state, after the Illinois Secretary of State Police reinstated a temporary suspension order, effective Monday for the motor vehicle seller.
The license was suspended in Illinois for misuse of issuing out-of-state temporary registration permits and for failing to transfer titles, according to a spokesperson from the Secretary of State’s office.
Advertisement
“Carvana generates significant revenues for the Village of Oak Brook,” Lalmalani said, adding that the state doesn’t allow the village to share specific data on sales/sales tax revenue.
In Oak Brook, Carvana opened in April 2019 and is located at 720 Enterprise Drive, where it’s known for its glass tower “vending machine’ in which used vehicles for sale are displayed.
Advertisement
The first suspension for Carvana was instituted May 10 and was stayed as of May 26, allowing business to be conducted in Illinois under strict guidelines. During the reinstated suspension order, Carvana may not sell vehicles in Illinois, said Henry Haupt, press secretary for the Secretary of State.
“My top commitment is protecting the interests and well-being of Illinois consumers,” Illinois Secretary of State Jesse White said in a statement. “I applaud the Illinois Secretary of State Police for their ongoing efforts to protect customers. We will continue to do everything we can to ensure that every customer is properly served.”
In violation of the May 26 agreed order to stay Carvana’s temporary suspension order, Carvana continued to conduct business in a manner that violates Illinois law, according to the Secretary of State’s office, including:
• Issuing temporary registration plates of another state to Illinois residents in violation of the stay agreement. This is illegal.
• Issuing temporary registration plates, without going through a licensed remitter as required by the stay agreement.
• Failing to process title and registration paperwork through the Secretary of State upon sale of a vehicle to Illinois customers as required by Illinois law.
“The surge in pre-owned car sales over the last year which, when combined with Carvana’s already rapid growth, created the perfect storm which we understand taxed Carvana’s processing resources,” Oak Brook Village Manager Greg Summers said Tuesday. “After the previous suspension, Carvana agreed to retain a third-party title processor to expedite this work, so I am surprised to hear of yet another set of delays.”
Summers said he welcomes an open and honest investigation into the true source of these delays and a permanent correction to whatever obstruction is creating this issue.
Advertisement
“The Village of Oak Brook remains confident that Carvana will once again work with the state to correct any deficiencies and reinstate their state automobile dealer’s license so that we can continue to experience a mutually beneficial partnership, and we are committed to monitoring this suspension closely,” Summers said.
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, White’s office said.
Carvana did not immediately respond to a request for comment.
The suspension will remain in place until the issues are resolved.
If a consumer has issues with their title and registration with a vehicle they purchased, they may contact the Illinois Secretary of State Police at 630-693-0551 to file a complaint and Secretary of State Police will provide assistance in getting the title transferred.
Chuck Fieldman is a freelance reporter for Pioneer Press.
