NEW YORK — Capital One Financial Corp.'s auto finance arm is suspending lending funds used by auto dealers to stockpile inventory in the states of New York and New Jersey. The suspension is effective Nov. 1.

This turns up the heat on financially strapped dealers, and indirectly makes it harder for consumers to get loans, particularly for new cars. The credit squeeze is likely to hurt already tepid new auto sales because auto dealers use a large chunk of this funding to stock new cars.

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