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Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

Carmakers brace for loans scandal payouts The Financial Conduct Authority (FCA) has suggested that carmakers may have to cover almost half of the compensation bill stemming from the motor finance scandal. The City watchdog estimates that “captive lenders” – the financial arms of carmakers that issue loans to consumers – will have to cover 47% of any redress to borrowers. With total payouts expected to be around £11bn, carmakers could see their liability come in at around £5.2bn. Lenders including Lloyds, Santander UK, Barclays and Close Brothers are expected to account for 51% of the payouts, while independent lenders are set to make up the remaining 2%. The Financing and Leasing Association, which represents car lenders, has warned that a large bill could disrupt the car finance market, with providers offering fewer or more expensive loans. It also warned that some could go bust.

GM Financial Sells $2 Billion in Auto Loans to Private Investors General Motors Financial Co. sold $2 billion worth of auto loans to private investors last quarter, a rare move away from public markets. The deal, managed by Goldman Sachs, involved loans issued to prime borrowers with strong credit profiles. – The sale highlights rising investor demand for high-quality private credit, as funds seek stable returns beyond traditional corporate lending. – Experts say the private credit market could eventually reach $40 trillion, dwarfing today’s $1.7 trillion direct lending space. – GM Financial, a frequent public issuer, completed a $1 billion prime auto loan offering in August but has slowed overall public issuances this year. – Private transactions like this can offer faster access to funding and reinforce a company’s credit strength by diversifying capital sources. – Analysts caution, however, that private credit markets remain opaque, posing potential risks if economic growth slows. GM’s move underscores how automakers are tapping new financing avenues amid shifting market conditions and investor appetite. — Thanks to our sponsor, Autotrader (https://www.autotrader.com)

Is it better to pay off credit cards or auto loans first? Paying credit cards down to a zero balance is the recommended approach. However, it is not advantageous to pay off an auto loan early. Paying off an installment loan, such as a car loan, can cause a credit score to temporarily dip. Credit bureaus prefer to see consistent payments over time. Maintaining a steady payment history on an installment loan can be more beneficial for long-term credit health. #creditcards #autoloans #debtfree #creditscore #financialplanning

First look at SEPTEMBER-2025 BELOW PRIME AUTO LOAN performance. Percent of Below Prime auto loans under stress (11+ days past due [DPD] or modified in month) … 60+ DPD loans ... first time repossessions in month ... percent of dollars outstanding charged off in month. September numbers labeled. Charts created using publicly offered auto loan asset-backed securities (ABS) loan-level data, comprised of five lenders who submitted their loan-level detail to the SEC, as of 15-October ... Bridgecrest, Capital One, CarMax, Carvana, and Santander … 2.6 million auto loans ($45.6 billion in outstanding principal). Data source:  Publicly available loan level detail files (SEC form ABS-EE, Exhibit 102).