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Truist Is Selling $5.5 Billion in Auto Loans. What Its Exit Says About U.S. Car Credit
Truist Financial just told the market it no longer wants to be in the business of near-prime car loans. On September 15, 2026, the Charlotte-based bank disclosed an agreement to sell $5.5 billion of auto loans — essentially all of the assets held by its auto-finance subsidiary, Regional Acceptance Corporation — and exit near-prime auto lending entirely. The headline number is real money. The more useful story is what a major U.S. bank just decided about where credit risk belongs on its balance sheet, and what that decision does and doesn't mean for people financing a car.
- Truist agreed to sell $5.5 billion in auto loans — substantially all assets of Regional Acceptance Corporation (RAC) — and exit near-prime auto lending
- The deal is expected to close in late Q3 or early Q4 2026 and generate $5.2 billion in net proceeds plus a $535 million loan-loss reserve recapture
- Truist says the transaction creates $945 million, or about 22 basis points, of CET1 capital, and reduces non-performing loans by more than 10 basis points and annual net charge-offs by about 10 basis points
- RAC's pretax earnings were roughly breakeven through the first half of 2026, and Truist's own CFO said the concentration of problem loans in this business no longer fit the bank's economics
- This follows Truist's earlier exit from marine and RV lending, under new CEO Mike Lyons' broader strategic review
- One bank exiting one lending segment does not mean the broader U.S. auto-credit market is collapsing, and it does not automatically change any individual borrower's loan terms
What Truist Announced
In a filing with the Securities and Exchange Commission on September 15, 2026, Truist Financial disclosed that it had entered into an agreement to sell $5.5 billion of auto loans, representing substantially all of the assets of Regional Acceptance Corporation, its national near-prime auto finance affiliate. Truist said closing is anticipated in the late third quarter or early fourth quarter of 2026, subject to customary closing conditions. The bank described the move as a strategic exit from a "non-core, less profitable" business, consistent with its earlier discontinuation of marine and recreational-vehicle lending.
The $5.5 Billion Breakdown
Truist laid out the transaction's expected financial effects in detail. All figures below are Truist's own preliminary estimates, disclosed as part of the announcement — the deal has not yet closed.
| Metric | What Truist Announced | Why It Matters |
|---|---|---|
| Auto loans sold | ~$5.5 billion | Size of the portfolio being exited — substantially all of RAC's assets |
| Expected net proceeds | ~$5.2 billion | Liquidity generated by the transaction, earmarked for uses like repaying wholesale borrowings |
| Loan-loss reserve recapture | ~$535 million | Reserves released as the loans and their associated reserve move off Truist's books |
| CET1 capital impact | ~$945 million / 22 bps | New core capital created, which Truist says supports its 2026 buyback target and broader capital flexibility |
| NPL impact | >10 bps reduction | Expected improvement in Truist's non-performing loan ratio as of June 30, 2026 |
| Annual net charge-offs | ~10 bps reduction | Expected reduction in credit losses going forward, once the sale closes |
Figures reflect Truist's own preliminary, illustrative estimates as disclosed in its September 15, 2026 SEC filing. Final results may differ once the transaction closes.
Three Numbers Worth Understanding, One at a Time
The table above shows everything at once. Tap through these three instead to see why each figure matters — not just what it is.
Figures are Truist's own preliminary estimates, disclosed September 15, 2026. The transaction had not closed as of publication.
What "Near-Prime" Actually Means
Near-prime is a lending category that generally sits between the credit profiles lenders consider "prime" and the higher-risk segments beyond it — but there is no single, universal credit-score range that defines it across the industry. Different lenders can use different criteria. Credit score is typically just one input among several: income, existing debt obligations, payment history, loan-to-value ratio, the vehicle itself, and other factors can all shape how a specific loan gets classified at a specific lender. Being labeled "near-prime" by one institution does not mean the same thing everywhere, and it does not automatically mean "bad credit" — it's a risk-based classification, not a judgment about a borrower as a person.
This Is More Than a $5.5 Billion Loan Sale
The transaction represents a change in where Truist wants to hold risk. Before the deal, Truist carried direct exposure to near-prime auto lending through Regional Acceptance. After closing, that exposure goes away, and the capital and liquidity it frees up get redirected elsewhere. Truist has said it plans to use proceeds for liquidity and capital actions, including potentially repaying wholesale borrowings and repositioning certain available-for-sale securities to offset the capital created by the sale. That distinction matters because these are described by Truist as illustrative, proposed actions — not transactions that have already been completed.
Why Truist Is Exiting This Business
The economics were part of the story. Regional Acceptance's loans were, by Truist's own account, relatively high-yield — but they also carried a disproportionate share of the bank's problem loans. Truist's non-performing indirect auto loans reached $569 million in the second quarter of 2026, roughly a third of the bank's total non-accruing assets. Truist CFO Mike Maguire put the logic plainly: "To the extent that these businesses, or certainly these assets, don't fit our eye and don't fit the economics, then we're going to stop doing them." RAC's earnings were roughly breakeven through the first half of the year — a business that wasn't losing money outright, but one whose credit-quality concentration was working against the bank's broader risk profile.
"The story is not simply about cars. It is about how banks decide where credit risk belongs."
Why CET1 Capital Matters
CET1 — Common Equity Tier 1 capital — is one of the main measures regulators use to assess a bank's core capital strength, essentially how much high-quality, loss-absorbing capital it holds relative to its risk-weighted assets. A transaction that both increases CET1 capital and reduces certain credit-risk exposures at the same time can matter to a bank's strategy because it improves financial flexibility on two fronts at once — more capital cushion, and less concentrated risk needing to be cushioned. None of this is a recommendation to buy, sell, or hold Truist stock; it's simply what the disclosed capital mechanics mean in plain terms.
Does This Mean U.S. Car Loans Are in Trouble?
No — not based on what's been disclosed here. One bank exiting one lending segment does not mean the entire U.S. auto-credit market is collapsing. The more accurate read is that Truist is reassessing where it wants to take on credit risk and how it wants to deploy its capital — a strategic and financial decision, not evidence of a broader auto-lending crisis. This article does not claim otherwise, and it is not investment advice regarding Truist or any other institution.
What This Could Mean for Someone Financing a Car
1. The sale does not automatically mean consumers will face higher rates. Pricing depends on individual credit profiles, lenders, and market conditions generally — not on this one transaction.
2. It does not automatically mean less credit will be available. Other lenders continue to operate in the near-prime and broader auto-finance space.
3. A portfolio transfer does not mean every borrower gets a new contract. Loan terms generally follow the original agreement, not the news of a sale.
4. The actual effect on any individual borrower depends on the specific terms of the transaction and how the portfolio is serviced after closing — details Truist has not fully disclosed publicly.
5. Anyone with a loan potentially affected should watch for official communication about servicing, payment instructions, or a change in the institution responsible for their loan — and treat only that official communication as authoritative.
What Borrowers Should Watch
For anyone shopping for a car loan — whether or not it has anything to do with this specific transaction — the fundamentals that determine what you'll actually pay are the same as always: the loan amount, the term, and the rate you qualify for. A auto loan calculator can help translate those into an actual monthly payment before you commit to anything. It's also worth understanding the steps that can genuinely lower your auto loan rate, and using a proper loan comparison approach that looks at total cost, not just the monthly number. Because affordability is about more than the car payment alone, checking your own debt-to-income position and getting a realistic read on your credit profile beforehand are both worth doing regardless of which lender ends up financing the car — and it can help to understand how auto loans fit among the broader types of consumer loans generally.
Strategic Context: A New CEO's Broader Review
This is not Truist's first exit of this kind. The bank previously discontinued its marine and recreational-vehicle lending business, and this RAC sale is described as part of a broader strategic review still underway under new CEO Mike Lyons. Truist has framed the moves as sharpening its focus on higher-return, more core parts of its business, while maintaining its 2026 share repurchase target of $5 billion unchanged. Any interpretation of what further changes might follow is attributed here to Truist's own statements and financial-press reporting — not presented as this article's speculation about the company's internal thinking.
Visual Illustration: Understanding the Exit
This original illustration is based on the themes discussed in this article. It is for educational and illustrative purposes only and is not an official Truist, Regional Acceptance Corporation, or Apollo Global Management graphic.
Illustrative graphic created for Smart Travel Finance. Not affiliated with Truist Financial, Regional Acceptance Corporation, or Apollo Global Management.
The $5.5 Billion Auto-Loan Decision
Follow along as a car shopper works through the same headline you just read. Answer each question to reveal what happens next — there's no reload, and no wrong answers, just three different ways of reading the same news.
Jordan is shopping for a car and just saw the Truist headline pop up on their phone. They wonder if it actually matters to them at all.
Whatever Jordan decides next, one thing is already clear: banks decide where they want to hold risk — and where they don't.
Jordan decides to check their own loan paperwork instead of guessing from a headline.
This is an educational reflection tool with a fictional narrator. It does not represent Truist, Regional Acceptance Corporation, or any real person, and it is not financial advice.
Frequently Asked Questions
Why is Truist selling $5.5 billion in auto loans?
Truist said the near-prime auto lending business, held through Regional Acceptance Corporation, no longer fit its strategic focus or economics. The business carried a disproportionate share of the bank's problem loans relative to its earnings, and the sale frees up capital and liquidity for other priorities.
What is near-prime auto lending?
It's a lending category generally between "prime" and higher-risk credit segments. There's no single universal credit-score range that defines it — different lenders weigh credit score alongside income, debt, payment history, and other factors differently.
Who owns Regional Acceptance Corporation?
As of this announcement, Regional Acceptance Corporation remains a Truist subsidiary; the sale had not closed. Bloomberg has reported Apollo Global Management as the buyer, but Truist's own filing did not name a purchaser.
Will the Truist auto-loan sale change consumer loan rates?
Not automatically. Rates depend on individual credit profiles, lenders, and broader market conditions — this transaction alone does not set or change pricing across the market.
When is the Truist auto-loan transaction expected to close?
Truist said closing is anticipated in the late third quarter or early fourth quarter of 2026, subject to customary closing conditions.
What does the transaction mean for Truist's capital?
Truist estimates the sale creates about $945 million, or 22 basis points, of CET1 capital, alongside a $535 million loan-loss reserve recapture and $5.2 billion in net proceeds — all preliminary figures disclosed as part of the announcement.
Can You Read Past the $5.5 Billion Headline?
Answer 6 quick questions about how you'd interpret a story like this one. This is a reflection tool, not a rating of Truist or any loan you may hold.
This tool reflects your own reasoning back to you for educational purposes only. It does not represent Truist or any lender, and is not financial advice.
