WF, worried about defaults, stops making loans to most independent car dealerships

[gdale6]

Wells Fargo, one of the biggest lenders for new and used car purchases in the U.S., sent letters to hundreds of independent auto dealerships last month telling them that the San Francisco-based company was dropping them as a customer, according to people with knowledge of the situation.

https://www.cnbc.com/2020/06/02/wells-fargo-cuts-back-from-making-loans-to-independent-car-dealershi...

[M_Smart007]

Thanks for posting @gdale6  (I was just going to post this)

[Anonymous]

No great loss as far as I'm concerend, especially considering an article a while back about their sketchy auto loan practices.

That said, i wonder how much of an imact it will really have with so many other Lenders available? 

[Anonymous]

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@M_Smart007 wrote:

Thanks for posting @gdale6  (I was just going to post this)

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Oh, the "shadow factor"  

[ahutchga1972]

I just got an auto loan through them. It was a Ford dealership that sold new and used cars.

[Revelate]

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@ahutchga1972 wrote:

I just got an auto loan through them. It was a Ford dealership that sold new and used cars.

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I had an auto loan through them back when I wasn't credit pretty and WFDS was apparently the only one that wanted it.

This is going to hurt the subprime lending market more than anything else I suspect.