CNBC, June 2, 2020: Wells Fargo, worried about defaults, stops making loans to most independent car dealerships
Wells Fargo is tapping the brakes on its auto loan business, CNBC has learned exclusively.
The bank, 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.
A Wells Fargo spokeswoman confirmed that the bank, which only makes auto loans through car dealerships, will no longer accept loan applications from most independent shops. Independent dealerships typically sell used cars, unlike franchise dealerships that focus on new vehicles from specific manufacturers.
