Carvana-promoted legislation for home car delivery becomes law in Illinois

Legislation supported by used-vehicle retailer Carvana Co. that codifies vehicle home delivery and other e-commerce sales procedures in Illinois was recently signed into law. It is set to take effect Jan. 1, 2024.

In late July, Illinois Gov. J.B. Pritzker signed Senate Bill 1896, which clarifies language about modern automotive retailing practices in the Illinois Vehicle Code. As signed, the bill amends that statute to add text clearly stating that licensed vehicle dealers are permitted to conduct sales activities — including collecting electronic signatures — via the Internet.

Carvana was one proponent of updating Illinois law because online sales and home delivery are critical to its business model.

The provisions included in the legislation aren't related to motor vehicle titling and registration requirements central to Carvana's previous, contentious interactions with the state. Illinois twice last year suspended Carvana's dealer license over titling and registration infractions.

The secretary of state's police department began investigating Carvana's business practices in early 2022 after consumers complained about its registration and titling timeliness. The secretary of state suspended Carvana's dealer license in May 2022, alleging the retailer failed to properly transfer titles for vehicles it sold and misused issuing out-of-state temporary registration permits.

The two entities settled that dispute in January after Carvana admitted to violating Illinois law and agreed to abide by new restrictions. Carvana was allowed to continue operating in the state.

The latest legislation passed unanimously in March by the Illinois state Senate and by the state House of Representatives — also unanimously — in May.

"We thank the thousands of Illinois customers who voiced their support for modernizing existing laws and commend Illinois Legislators and the Governor for taking action on behalf of local consumers," Carvana government relations manager Will Dammann said in a statement Monday.

The bill was originally filed Feb. 9 in the state Senate by state Sen. Patrick Joyce, a Democrat whose district includes a small segment of south Chicago and the majority of Kankakee County. It was later sponsored in the state House by state Rep. Anthony DeLuca, a Democrat whose district includes the Chicago Heights suburb and part of Will County.

The legislation also stipulates dealers may deliver vehicles to a customer at their residence, if requested in writing. If a vehicle is delivered to an address other than the licensed dealer's place of business, the date of sale is when the vehicle buyer signs an application for vehicle title, according to the legislation.