Article: Parent of Adesa auction dinged by lending arm

Slowing auto sales have forced another locally based auto financier to take a big write-off on the declining value of its loan portfolio.

Carmel-based Automotive Finance Corp., which lends money to car dealers to buy used vehicles at auction, took a $161.5 million non-cash charge in the third quarter.

Earlier this month, Indianapolis-based White River Capital Inc. took a $345 million non-cash write-off to reflect the declining value of loans held by subsidiaries Union Acceptance Credit Corp. and Coastal Credit LLC.

Because of "increased risk associated with lending in the automotive industry, AFC has tightened credit policies and experienced a decline in its portfolio of finance ...

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