Minneapolis-based U.S. Bank is expanding its sales and credit teams in an effort to increase its dealer base and grow used-vehicle volume and marketshare. The expansion to both teams will be complete by month’s end, Senior Vice President Tom Wirth told Auto Finance News.
Wirth also noted that the bank is seeing an increase in loans with terms longer than 72 months and is using a “disciplined approach to expanding [its] nonprime business,” which Wirth expects to “eventually comprise 5% to 10%” of the bank’s portfolio. Dealers now view the bank “as more than a prime lender,” he said.
In the wake of losing General Motors Co.’s leasing business to General Motors Financial Co., the bank has “adjusted [its] culture and some internal processes to become more ‘captive-like’” to meet OEM needs, Wirth said, adding that in October 2014 the bank started to work with Tesla for loans and leases, a business that is “growing nicely.”
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