Capital One Financial Corp said on Friday it will stop financing vehicle inventory for auto dealers in the states of New York and New Jersey, starting November. The decision comes at a time when the global credit crunch has put a squeeze on auto dealers, who face more expensive credit to finance consumer purchases as well as their own inventory amid a steep plunge in U.S. vehicle sales.
Capital One spokeswoman Tatiana Stead said that it was a business decision based on a variety of factors.
"It's only about vehicle inventory financing, and it's unrelated to other auto loans," she said.
Read Article