Vehicle subscriptions plunge auto lenders into compliance ‘gray area’

Compliance law isn’t established for subscription, short-term lease programs

General Motors Co. Chevrolet Colorado trucks are displayed at a car dealership in Tinley Park, Illinois, U.S., on Monday, Sept. 30, 2019.

Subscription models can unlock new routes to mobility for consumers, but navigating compliance practices can be challenging for auto lenders offering nontraditional car loans and leases. Compliance law is well established for auto loan purchases through traditional retail installment contracts, 36-month leases and short-term rentals. However, some auto lenders have turned to subscriptions to offer […]

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