All articles tagged with #auto finance
CarMax reported a 28.2% decline in net earnings for Q2 2026, with decreases in used vehicle sales, gross profit, and auto finance income, but announced plans for significant SG&A reductions and share repurchases amid challenging market conditions.
The collapse of Texas-based used car dealer and lender Tricolor Holdings, which primarily served Hispanic immigrants with limited credit, has raised concerns about the health of the subprime auto finance sector. The company, accused of fraud and facing investigations, unraveled rapidly after its financial practices came under scrutiny, leading to bankruptcy, significant losses for lenders and investors, and questions about the sustainability of its business model and the broader auto lending industry.
Lendbuzz, a Boston-based fintech specializing in auto finance using alternative data and machine learning, has filed for an IPO aiming for a valuation of around $1.5 billion, with Goldman Sachs and JPMorgan managing the offering amid a recent wave of fintech IPOs.
Bank of Montreal (BMO) is closing its indirect retail auto finance business, resulting in job losses, as the bank focuses on other areas. The move comes as BMO's bad debt provisions increased, indicating growing stress on consumers due to rising borrowing costs. The bank will continue to fund contracts submitted and approved prior to the termination date. BMO's consumer loan portfolio includes home equity loans and primarily auto loans, but also loans for boats, recreational vehicles, and motorcycles. The Bank of Canada's data shows higher delinquency rates for vehicle loans, reflecting the strain on consumers' finances. BMO has been expanding in the United States to find new avenues of growth, with the US now accounting for over one-third of its overall profits.
The Bank of Montreal (BMO) is exiting the retail auto finance business to focus on areas where it believes its competitive positioning is strongest. While it will no longer provide consumer vehicle loans, BMO will continue to offer financing for dealers. The move will result in layoffs, but the exact number was not disclosed. BMO is working closely with affected employees to provide support and ensure fair treatment. BMO and its American unit, BMO Harris Bank, currently offer auto loans to consumers through various dealers in Canada and the United States.