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That's the great part about markets: If you think the terms are unfair or overestimate the default risk, you can offer car loans at the same or lower rates with
by SilasX 6y ago
That's the great part about markets: If you think the terms are unfair or overestimate the default risk, you can offer car loans at the same or lower rates without such odious restrictions! (Or invest in someone who does &c.)
If no one's willing to do it, then maybe they're actually calibrating the risk correctly?
- jonnycomputer 6y agoOr there are market frictions that limit the ability of subprime borrowers from actually shopping around.
- SilasX 6y agoThat would be a hard case to make: https://www.google.com/search?q=auto+loan https://www.google.com/search?q=auto+loan