The alternative in that case is walking or riding a bike. He's making
those loans because traditional financing options won't touch these borrowers.
A 20% loan on a $15k used vehicle (mostly what he does) over 48 months is ~$450 per month. For someone who needs a car and doesn't have $15K lying around to write the check, that's a better option than not having a car. There's a market for this. It's not "predatory". It's an either / or scenario. He can either make the loans at 15-20% interest, or the business model doesn't work and he doesn't make the loans. And people don't have cars because no one is loaning them money for a car at a lower interest rate
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In response to this post by WahooMatt05)
Posted: 07/01/2022 at 11:57AM