US Auto Lenders' Failures Signal Rising Risks for Borrowers
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.
