Used-car retailer Carvana admitted to violating state law by failing to transfer car titles in a timely manner and has reached a settlement agreement with the state, officials said Tuesday.
The agreement calls for Carvana to abide by Illinois law going forward, surrender a $250,000 bond and allow inspections by secretary of state police to ensure compliance, according to a news release from Illinois Secretary of State Alexi Giannoulias. Under the agreement, the state can suspend or revoke Carvana’s license again if the company is found out of compliance with either the settlement agreement or with state law.
Illinois first suspended Carvana’s license in May 2022 after launching an investigation into the company’s practices in February prompted by customer reports that the company was issuing out-of-state temporary registration permits and failing to transfer titles in a timely manner, the secretary of state’s office said. Before the settlement agreement, Carvana could only sell cars under the terms of a temporary restraining order set by a DuPage County judge.
