Bank of Montreal winds down its retail auto finance business, shifts focus to other areas

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The bank is winding down part of its auto loan business as the North American economy and its clients face headwinds from inflation and higher interest rates

– that rank as market leaders in indirect car loans, according to a survey published in May by J.D. Power, a consumer insight service.

TD Bank had $19.2-billion in auto loans when it reported financial results last month, while Scotiabank’s auto financing totalled $16.5-billion. BMO sent dealers a letter on Friday stating its loan agreements would be terminated effective Sept. 15, but that the bank would fund all contracts submitted and approved prior to the date, according to a report published on Sunday by Reuters.

 

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