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For years, luxury vehicle owners have registered their cars through Montana LLCs to avoid sales taxes, emissions tests, and registration fees in their home states. But that workaround is now in the spotlight — and states are starting to push back.

Why Montana?

Montana’s no-sales-tax policy and straightforward registration process make it an attractive option for owners of exotic and collector cars. For around $1,000, specialized companies will form an LLC, register your car in Montana, and send you plates — all without you setting foot there.

That loophole has turned Montana into a registration hot spot. The state now has more vehicles per driver than almost anywhere else in the country — a clear sign that many of those cars actually live elsewhere.

Why Other States Are Pushing Back

From California to Utah, states are losing millions in tax revenue as residents register vehicles hundreds of miles away. Now, they’re cracking down.

• Utah has launched an enforcement program using data sharing and plate readers to identify out-of-state vehicles — aiming to recover up to $100 million in unpaid taxes and penalties.

• California has increased audits and dealer investigations, warning that registering in Montana while living elsewhere could result in steep fines or even criminal charges.

In short, what once seemed like a clever tax loophole is now a potential liability.

What This Means for Drivers

If your car spends most of its time outside Montana, authorities may consider your registration fraudulent — even if you set up the LLC legally. With enforcement rising, penalties and back taxes could cost far more than any short-term savings.

Before taking advice from a “friend who knows someone,” talk to a tax professional who understands both Montana’s laws and your home state’s requirements.

For Auto Concierge Clients

At Auto Concierge, we don’t just store vehicles — we help clients protect their investments. From storage and transport to compliance and peace of mind, our goal is to make luxury car ownership effortless and secure.

We’re closely following the growing scrutiny around Montana registrations so our clients can stay informed and avoid unnecessary risk.

Read the full Bloomberg Tax article here:
👉 Got Montana Plates? States Ramp Up the Scrutiny on Tax Dodgers

As collectors seek the best ways to protect and preserve their prized vehicles, choosing the right storage facility has become more important than ever. Aon Private Risk Management’s Collector Car Practice Leader, Jonathan Horton, sat down with Scott Elrod, CEO of Auto Concierge, to discuss what collectors should consider when selecting a storage facility, the latest trends in high-end auto storage, and more.

Johnathan Horton (JH): What do most people not realize about properly stored high-value cars?

Scott Elrod (SE): I think it’s important to think about what “high value” means to someone. I think it’s subjective. A collector may have a car valued at $100K and it’s their prized possession. Another collector may have a collection valued at $200M. Both collections are high value to the individual. Not all storage facilities will treat the owner of a smaller collection as well as the owner of a larger collection. Owners should always work with a facility that shows care for all the vehicles in their care, and is properly staffed to do so, regardless of the collections size. I care about every vehicle under our watch.

JH: What do most people not realize about properly storing vehicles?

SE: Cars can’t be left to sit idly. They need to be looked after and touched on a regular basis. If they sit – they die. The engine and suspension seals can dry up, charging systems fail, and batteries go bad even with tenders. Big picture, this translates to unnecessary repairs, which are costly and increase the overall ownership experience. If you are storing your vehicle in your garage, please run it regularly. If you are storing it at a facility, please make sure the company is running your car and checking on it.

JH: Have you ever had a client request something unusual?

SE: Nothing is really unusual to us. We get calls at all hours with different requests, but we don’t consider that odd since we have clients that travel the world. We are a 24-hour facility, so it works out. You never know what the owners will need. Recently, one of my clients called me at 3 a.m. He was in Europe and needed some photos taken of his car. We got it done for him. Some clients want to come in after midnight to take their car out. We can accommodate them.

JH: Have you seen common mistakes that owners make before bringing their vehicles to you?

SE: The biggest thing we see is that cars are not cared for properly. Some cars haven’t had their scheduled maintenance, have the incorrect tire pressure, and have expired plates. Some cars have been sitting in a garage for over a decade and are covered in an inch of dust because at one point the battery died. If this is the case, make sure to let the storage facility know so they can work out a plan with you to get the car running its best.

JH: How has the demand for high-end auto storage changed in recent years?

SE: We started in 2008 with one car and now have almost 500 under our care. There are more cars being collected now, but property sizes are smaller. More people need to store their cars off their property because of it. We also noticed that collectors are looking more and more for specialized storage like climate-controlled facilities. There’s also a greater demand for secured facilities.

JH: Are you noticing any trends among collectors and luxury car owners?

SE: Collectors used to buy cars to take out for a cruise on the weekend. Now you see more collectors treating them as investments. Some will do both. In some ways these vehicles are like buying stocks or investing in real estate. There has definitely been a shift towards purchasing cars as an asset for investment purposes.

JH: What are the biggest risks vehicle owners overlook when storing their cars long-term at home or in their own storage building?

SE: Fire is the biggest exposure when storing cars. Fires can start from a bad electrical connection in a car, or it could be a wildfire issue. It’s essential to ensure the property is adequately protected for fire, including monitored alarms and a fire suppression system that will not damage the cars if triggered. We make sure the cars we store are properly maintained and in good working condition. Storage should always be in a clean, dry controlled environment. Any facility storing cars should be clear of external issues that may start or fuel a fire. Early detection of a fire is also just as important, smoke detection devices, offsite monitoring can all help in prevention.

JH: How do you handle the Liability in respect of damage to the cars when in your care?

SE: Our company provides protection against damages caused to the vehicles under our care per the contract terms signed with the owner, alongside the owner’s own insurance policy which provides the ‘first party’ coverage. It is important that anyone storing a car ensure the facility that is storing it has proper coverage.

JH: Have you ever had an incident where insurance played a key role in resolving an issue?

SE: Yes, unfortunately a car was damaged in transit when the transporter was involved in a traffic accident. The owner’s insurer paid the claim and subrogated back to the transit company. We helped manage the entire process for the owner, to make it as smooth and hassle-free a process as possible. Recently, we were driving a client’s vehicle back from a hotel where the owner was staying and we were rear ended by an uninsured driver. In this case, the owner’s insurance covered the damage, but we managed the repair process for them.

JH: What do you look for in an insurance broker when referring clients?

SE: We have worked with different brokers over the years. Finding a broker that actually understands the nuances involved with insuring the types of vehicles and the big picture items like home and umbrella isn’t easy. We have worked with Aon for a few years now and they have done such a spectacular job for our clients. We want a broker that is going to treat the client in the same manner as we do. This is not transactional. It is relationship based. These cars are extensions of the owner’s family so it’s important that the insurance broker can connect with the owners so they feel comfortable with the solution that is being presented. Another issue I come across is that owners don’t think about their vehicle’s value changing. They don’t realize that the value of the vehicle has increased over the term of ownership. Once they have a total loss, they discover their car insured for so much less than its actual value. That’s another reason to have a good insurance broker that actually has a specialty in collector car coverage. They can help owners spot these deficiencies.

JH: What challenges have your clients faced when trying to insure stored vehicles?

SE: Storage location can sometimes be an issue for underwriters if the zip code is in a high catastrophe exposed location for wildfires or hurricanes, for example. This is where using a storage facility can help.

JH: Have you ever seen an owner assume they were covered only to find out they weren’t?

SE: I’ll give you a short answer. Yes! This is why we refer clients to Aon. They have really jumped into help owners that didn’t have any idea that they didn’t have the right insurance in place.

JH: What’s one piece of advice you’d give to someone considering long-term vehicle storage?

SE: It’s important to understand the difference between the companies that will just “store” your car versus companies that treat these cars like true assets. Collectors should think twice about using a facility that doesn’t look after their cars. My reputation is on the line with every vehicle I care for, and I have worked hard to build this reputation over the last 20 years. Make sure you are only dealing with storage facilities that care for your car as much as you do!

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Scott Elrod is the CEO and founder of Auto Concierge, a luxury car management company based in Los Angeles providing vehicle storage, maintenance, management, sourcing, and sales for high-end car owners.

Jonathan Horton, Aon Private Risk Management’s Collector Car Practice Leader, has extensive knowledge of specialized insurance coverage and risk management solutions for collectors of antique and vintage automobiles.

(This interview was first printed in the Aon Newsletter published by Aon Private Risk Management Insurance Agency Inc. (DBA Aon Private Risk Management) is licensed in all states including the US Virgin Islands. CA license #0C42470. Mailing address: MSC#17208, PO Box 551343, Atlanta, GA 30355.)