Norwest Corp.'s finance arm has agreed to buy $375 million in subprime auto loans from SunStar Acceptance, a NationsBank Corp. subsidiary.
Terms of the agreement, announced Monday, were not disclosed, but analysts estimated that the purchase price could have been $300 to $330 million.
The purchase includes 46,000 accounts, Norwest Financial Inc. said. The loans will be managed by Community Credit Co. and Fidelity Financial Services, auto finance subsidiaries of Norwest Financial. The deal is expected to close early in the fourth quarter.
The acquisition would build Norwest Financial auto finance receivables to $2.1 billion, or 22% of the company's total receivables. -Heather Timmons