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Illinois establishes digital retail guidelines for car dealers

Illinois lawmakers have passed an amendment to the state's vehicle code allowing car dealers to sell and deliver vehicles online

Illinois lawmakers have passed an amendment to the state’s vehicle code allowing car dealers to sell and deliver vehicles online, after facing pressure from e-commerce platform Carvana.

Although dealerships in the state have been selling vehicles online for some time, the updated bill establishes explicit permissions regarding internet transactions, whereas earlier versions lacked precise guidelines. The law also gives retailers the right to ship purchased vehicles directly to the customer, although buyers are required to request home delivery in writing. Carvana, one of the nation’s largest digital car dealers, has supported the amendment since state senator Patrick Joyce first filed to change the law in February. After clearing the Illinois House and Senate with unanimous votes, the revision was officially codified last month by Governor Jay Robert Pritzker, with an effective date set for New Year’s Day.

Vehicle purchases are occurring online with more frequency than ever as car dealers look to accommodate customers who prefer shopping from home rather than in-store. Digital retailers like Carvana have been at the forefront of this shift, conducting as much of their business online as local regulations allow. Differences in state law, however, make it difficult for nationwide brands to offer the same level of service to consumers in all areas, hence why the e-commerce platform voiced its support for changing the Illinois vehicle code. In a statement, Will Dammann, government relations manager at Carvana, thanked residents in the state “who voiced their support for modernizing existing laws” while praising lawmakers “for taking action on behalf of local consumers.”

This is not the first time that Carvana has engaged with the Illinois government. State regulators suspended the digital retailer’s dealership license in 2022 after an investigation confirmed customer reports of mishandled titling and registration. The license was reinstated earlier this year, although the online car dealer must now submit to inspections and other restrictions. Failure to comply with these guidelines will result in a complete revocation of the brand’s license.

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Colin Velez
Colin Velez
Colin Velez is a staff writer/reporter for CBT News. After obtaining his bachelor’s in Communication from Kennesaw State University in 2018, he kicked off his writing career by developing marketing and public relations material for various industries, including travel and fashion. Throughout the next four years, he developed a love for working with journalists and other content creators, and his passion eventually led him to his current position. Today, Colin writes news content and coordinates stories with auto-industry insiders and entrepreneurs throughout the U.S.

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