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.
They say this only deals with inventory financing and won't affect auto loans, but this certainly isn't going to help the already struggling auto dealerships. And for a reminder, less than a month ago before they converted into crisis mode, John McCain, George Bush and Chris Myers were still trying to convince people the economy was basically strong:
