[Ears]

Very recently, I have been researching auto financing, considering a purchase of a privately owned luxury vehicle. I contacted several lending institutions to inquire about their rates, and have discovered each nationwide, reputable one I contacted has suspended loaning money on privately owned vehicles, opting to only offer an auto loan on a vehicle purchased from a franchised dealer. Obviously, personal loans are still an option (more than one wanted to immediately sign me up with a home equity loan?!?). Anyone with a good credit score can swing it, if they desire, so I was not initially alarmed. However, I have begun to rethink the lenders' positions on this, and have become more concerned.

This is more far-reaching than simply discontinuing a product for the consumer. Basically, any independant car lot that does not qualify as a "franchised dealer" has had a segment of the buying public removed from the equation. On the surface, this appears to grant the auto companies' dealers a huge advantage. In essence, a buyer now is limited in his choices, and encouraged to either tie up his home, opt for a higher rate personal loan, or deal only with dealers... (and get robbed by trade-in, potentially). Also, extrapolating further, what is the market now for your vehicle if you choose to sell?

Does anyone else feel this is an alarming trend? Is there an interpretation that collusion is apparent between the lending institutions and the auto manufacturers (or at least dealers)?

Thoughts?