Another one bites the dust...

Amanda Gordon

Another large Bank shuts down their automotive lending department due to poor performance. I ask is it management or the portfolios that are performing poorly?


Chris K Leslie

Wonder how risky that business really is for banks. 

Jamil The Carman

Gateway one Lending also just went out of business .Alaska Credit union left California and so many other small companies stopped lending .The fact that manufactures are being more and more aggressive in trying to get their market share giving low APRs and financing challenged credit individuals,It put lending companies out of the league.

Amanda Gordon

@Jamil the article is about Gateway. I know they did a re org roughly 4 months ago and got extremely tight on their buying. I suppose this is why. On the flip side a local bank that we work with MPH2 has just expanded to 3 more states...

Amanda Gordon

@Chris I haven't seen the numbers but some are making a killing. I think like with any business it's all about the structure.

If you read the PR it's clear they believed the capital could be used in other opportunities with higher expected ROI. Seems to be a solid business decision for the company and its shareholders. I think this issue is individual, but with OEM offering Free money all the time... smart move to get out and on to something better, didn't hurt stock price so shareholders weren't surprised by the move. 

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