Kevin Paffrath claims that subprime auto lenders operate on a model that assumes defaults will eventually happen, so they prioritize making enough profit in the first few months of the loan to mitigat

“If you're a subprime lender, okay, let me just pretend we're you and I. Okay, you and I, we're subprime lenders. Okay, here's how this works. Hey, you know these guys are going to default, right? Yeah. Yeah, we know they're going to default. All right, so here's what we got to do. We got to make sur”