Driving the news: Automotive Credit Corporation (ACC), a 33-year-old regional auto lender specializing in subprime, has abruptly halted all new loan originations "indefinitely" effective immediately, citing "internal and external financial conditions" and strategic changes, according to an internal memo shared with CDG News.
For context: ACC will only fund deals already approved and received by August 7, with everything else getting returned to dealers immediately. The company says servicing of existing loans continues and this isn't a "closure of business" but a "focused shift in direction."
Why it matters: The sudden shutdown of a major auto lender suggests deeper problems in the automotive finance sector that could ripple through dealerships nationwide. When a company suddenly stops lending overnight, it raises questions about market conditions and whether other lenders are quietly tightening up too.
Bottom line: This could be an isolated problem at one lender or a canary in the coal mine for broader auto finance troubles.
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