Dealers Left As National City Bank Bails Out
Late yesterday afternoon, National City Bank (NCB) faxed car dealers and motorsport businesses the shocking news that NCB is dumping the business of financing consumer car loans. Dealers will no longer be able to help their customers obtain financing through NCB.
This looks like the beginning of the banking industry’s flight from traditional areas of business. As NCB’s fax tells dealers, the bank will still be around to help them buy cars to put on their lots and to manage the oodles of money they will hopefully make once those are sold, but NCB won’t be a “partner” in the activity of helping dealers’ customers buy the cars. Go figure.
National City Bank’s official statement on the issue can be read in its press release.