Good comment here: https://news.ycombinator.com/item?id=18497717 https://news.ycombinator.com/item?id=18497717 from the previous discussion about why this vehic

Good comment here: https://news.ycombinator.com/item?id=18497717 https://news.ycombinator.com/item?id=18497717 from the previous discussion about why this vehicle exists, however it sounds like it's being abused / exploited by these lending firms. They're not actually trying to make money from interest (they're happy to break even on the loan) - rather they are making money from penalties and fees assessed when the borrower "violates" the agreement (said violation often involving fraud by the lender)