Capital One Financial Corp. sees “a great future” in auto finance, and has no plans to pull back, President of Financial Services Sanjiv Yajnik told Auto Finance News.
The statement came on the heels of a mention last week by Capital One’s Chief Executive Richard Fairbank that the bank was on the lookout for an “inflection point” where it would have to pull back from the auto lending space.
Yajnik added that the bank remains careful about the types of loans it issues. “We only book loans that are lending loans,” he said. “We stay away from loans that are too heavy in fees so they’re not credit underwritten, but much more underwritten in fees.” Yajnik also said that Cap One would be able to ride out any downturn in the market, because it always lend as though one were coming. That way, he said, if it does come, “it’s not like we would be making a lot of money, but we would not be losing a lot of money.”
