Wells Fargo will continue to look into the matter, but “that’s not what we’re doing right now,” Sanders said.
Chuck Jones, COO of Truist Dealer Financial Services, said at the summit that his bank has offered 84-month auto loans for years.
“You don’t use it to match your payment,” he said.
Instead, Truist offered them as “lease fighters,” he said.
Jones also noted that an extended period has begun at SunTrust, a bank that merged with BB&T to become Trustist in 2019.
Trust also found 84 months of debt to be a “very good loan,” Jones said.
Bank of America consumer auto loan executive Tim Owens called his bank “late to its game,” offering only 84-month loans for about six months. It was only about 3% of Bank of America’s portfolio.
“We’re not really doing it for people expanding for affordability,” he said. It was an option for qualified customers, he said. He said.
Jim Maneris, Chase Auto’s head of strategic alliances, said Chase offered an 84-month loan “for a short while,” but that remained rare.
“We don’t do that much,” said Maneris. “It’s appropriate, so it’s definitely a good idea to use it sparingly.”
As Jones pointed out, the longer term debt may be less risky than it seems.
Non-prime consumers are more likely to pay an 84-month loan than a 72-month loan, according to Open Lending.
Open Lending Chief Revenue Officer Matt Roe said: car news in September.