The state says it suspended sales again because Carvana was not transferring titles within 20 days of sale nor issuing Illinois temporary registrations to Illinois buyers. It also says Carvana would issue temporary registrations up to four to five times from different states for the same vehicle.
Carvana has faced similar scrutiny in other states over titling and registration issues. In February, the online retailer averted a suspension of its dealer license in Florida after it processed outstanding vehicle title applications before a key Jan. 31 deadline.
The company's license to sell in a North Carolina county was blocked last August for 180 days over similar vehicle titling and tag issues. It was restored this year.
Carvana and other online car sellers are under pressure to cut costs amid higher interest rates and waning demand. The company went public five years ago. Its stock has plummeted from a high of $370 last August to $22.25. In May, Carvana said it would lay off about 2,500 employees, or 12 percent of its work force.