Banks may stop inventory financing support for some dealers. This is not only to those who faced repayment issues but also to those who are well-capitalised and do not need the bank’s funding. These comprise a minuscule percentage of dealers. Withdrawing these credit facilities will have no impact on customer finance.
Banks are also seeing a deterioration in the finances of several new auto dealerships that have come up recently as the lockdown restrictions continue due to Covid-19.