A Tricolor dealership in Houston, Texas, US, on Thursday, Sept. 11, 2025. Mark Felix/Bloomberg/Getty Images

Tricolor, a major subprime auto lender specializing in buyers without social security numbers or credit histories, is going out of business.

The company filed for bankruptcy on Wednesday. Most companies that file for bankruptcy intend to stay in business. But Tricolor does not – it plans to liquidate. Tricolor has not been available for comment.

Tricolor’s failure is bad news for buyers who depend on such lenders, often undocumented immigrants – a particular focus of the Texas-based company. It’s also not great for the major banks invested in Tricolor’s debt backed by its loans.

But Tricolor’s problems aren’t likely to upend the broader financial services industry the way the s

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