A cash car rental service in Indianapolis said Wednesday it’s suspending all car rentals in the state after state regulators approved a new policy that allows companies to sell cars with cash.
The company, which advertises to people looking for rental cars for less than $500 a day, said it was suspending car rentals until an updated policy is put in place.
The new policy allows car rental companies to provide cash or credit cards to those who need a rental vehicle, even if they aren’t driving a car themselves.
The policy was approved by the Indiana Motor Vehicle Administration late last month.
The Indiana Department of Revenue is responsible for enforcing the law and is reviewing the new policy.
Cash car rentals aren’t covered by the law, but the new rules could change that.
The companies that provide cash car rentals to people in Indiana must keep track of their customers and notify the state in writing within a week of a rental change.
A state audit released last month found that more than 80 percent of cash car operators in Indiana do not have the required background checks, and some may not even have the licenses needed to operate.
The audit also found that some car rental firms that offer cash car services in the city of Indianapolis did not have proper vehicle inspection records.
Cash Car Rentals spokesman Mike Williams said in a statement Wednesday that the company would be working with the state to ensure the new state regulations are implemented.