Car finance company to be shut down

Tue, 28 Apr 2009



The beleaguered car finance and other subprime lender Cattles this week announced that they would shut down direct distribution car retailer and vehicle finance company Welcome Car Finance .

The aim of the closure is to preserve cash and increase the liquidity of the parent company. Unfortunately, the closure will result in 130 job cuts within the group.

Cattles lends at higher interest rates to a variety of subprime borrowers. Although Welcome Car Finance remained selling stock, Cattles reportedly commented: "without additional funds to acquire new stock, the business model will become unviable and it is likely that Welcome Car Finance will start to absorb cash ."

With wholesale borrowing far more expensive, the operating margin of the business has closed.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

Advice section: Pros & Cons | Finance Tips | Running Costs | Payment Options
Car finance partners

Halifax Loans