Strains are growing again in the US car finance market as a dramatic slide in used vehicle values and tightening credit conditions squeeze participants ranging from investors in auto loan-backed securities to finance companies and car buyers.
The pressures were evident earlier this week when Ford Credit, Ford Motor's financing arm, reported a $294m second quarter loss, compared with a $112m profit a year earlier. Ford Credit wrote down its lease portfolio by $2.1bn and stepped up its loan-loss provisions.
