With vehicle subscription plans such as Book by Cadillac and Care by Volvo gaining momentum and clientele, some states are scrutinizing the models and their implications for dealership franchise laws and state revenue streams.

It has led to a temporary ban on subscription programs in Indiana and an on-hold proposal in California that would have required that any automaker subscription plan go through its dealers. They are among the first states to look at how to treat vehicles in the growing number of subscription programs offered by manufacturers and dealers — or even whether regulation of the programs is necessary. New Jersey dealers also are seeking regulatory changes.

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High Tax States Not Sure How To Handle Subscription Programs

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