[goldstategop]

If people can’t afford to make payments on their subprime loan, no collection agency is going to go after them.

Not worth it. You don’t loan money to people who are poor credit risks.

[fhayek]

Well, you do if you can charge 25% interest. For a car loan.

[dsrtsage]

“Not worth it. You don’t loan money to people who are poor credit risks“

You do if the government backs them. There are limitless tax payers

[MrEdd]

And if your product is overpriced beyond a certain extent for what it is then everyone becomes a credit risk when they figure it out.

[monkeyshine]

I am curious what interest rates these people are paying. Because they are subprime the lenders are probably charging a lot more than the advertised APR for cars. I just wonder whether if these people had smaller payments to make more in line with the advertised APRs if they would make or be able to make the payments.