Truist to exit near-prime auto lending, sell $5.5B in loans

Truist is making a major move that will change the landscape for car dealers and auto retailers. The bank has announced it is exiting the 'near-prime' auto lending space entirely. They are selling off $5.5 billion in existing loans and will no longer originate new ones for borrowers in this credit tier. This shift is part of a broader strategic review under new leadership to focus on higher-credit, lower-risk accounts. For your dealership, this means one of the largest players in the market is pulling back. If you have relied on Truist to help bridge the gap for customers who don't quite hit the top-tier credit mark, those approvals are going away. You can expect tighter lending standards from traditional banks overall as they follow this trend toward 'de-risking.' Now is the time to review your lender mix. As Truist exits, there will be a gap in funding for customers with mid-range credit scores. You should look to diversify your financing partners. Consider adding more specialized indirect lenders or fintech-based platforms that focus specifically on the near-prime segment to ensure you don't lose sales at the F&I desk. Don't wait for your current reps to stop answering the phone; start vetting new options today.

Source: Banking Dive

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