And Yet Another Subprime Lender Pulls the Plug on New Loans

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Prestige Financial Services Ceases Subprime Auto Originations, Transitions to Servicing-Only Operation

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Prestige Financial Services, a Draper, Utah-based subprime auto lender owned by the Larry H. Miller Company, has abruptly ended its loan origination business and will operate solely as a loan servicer going forward.

In an email sent to dealership partners and obtained by industry publication CDG News, the company announced that effective Thursday, November 20, 2025, it would no longer accept new credit applications.

Prestige stated it will fund any contracts already in-house or in transit through the end of November 2025, after which all new origination activity will cease. The full statement to dealers read:

“For more than 30 years, Prestige Financial has had the privilege of partnering with dealers across the country and serving customers with integrity and dedication. We are deeply grateful for your trust and support.

After careful consideration, Prestige has made the decision to stop new originations and will transition into a servicing-only business. Beginning Thursday, November 20, 2025, we will not accept credit applications. We plan to fund any contracts already in house or in transit until the end of the month.

While we will no longer be originating new contracts, our commitment to our existing customers remains unchanged.”

Prestige Financial Services, founded over three decades ago, specialized in financing near-prime and subprime borrowers who were typically unable to secure traditional bank or credit-union auto loans. The company partnered primarily with independent dealerships to provide financing for both new and used vehicles. As of December 31, 2023, Prestige managed a loan portfolio of approximately $1.23 billion and employed roughly 571 people, generating annual revenue of around $170 million.

The decision comes amid a challenging environment for subprime auto lenders. Rising delinquency rates, higher funding costs, and tighter credit spreads have pressured profitability across the sector in recent years. Prestige itself carried a Moody’s B3 corporate family rating with a probability of default assessed at 0.381%, placing it in the lower tier of investment-grade and high-yield crossover territory.

Reports circulated online alleging the company executed significant layoffs on November 3, 2025, with estimates of close to 100 employees, many of them long-tenured and impacted across multiple departments. Prestige Financial Services has not responded to multiple requests for comment from media outlets regarding either the layoffs or the broader strategic shift.

CUCollector on the other hand, has confirmed these layoffs with several of the affected employees who reported that the layoffs came as a surprise and that no one was provided any statement of specific reasons for their termination.

By moving to a servicing-only model, Prestige joins a growing list of subprime and deep-subprime auto finance companies that have either dramatically curtailed or completely exited new lending in the past 18 months. The remaining $1.23 billion portfolio will continue to be serviced for existing borrowers, but the company will no longer add new loans.

For the thousands of independent dealerships that relied on Prestige as a financing source for credit-challenged customers, the sudden withdrawal eliminates one of the dwindling options in an already contracting subprime ecosystem. Industry observers expect further consolidation and contraction in the space as economic pressures persist.

Source: CDG News

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And Yet Another Subprime Lender Pulls the Plug on New Loans – And Yet Another Subprime Lender Pulls the Plug on New Loans – And Yet Another Subprime Lender Pulls the Plug on New Loans

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