#6 Carvana’s secret sauce, what’s next for auto lenders, pros/cons of credit unions | Chris Coleman, Co-Founder of WithClutch
Car Dealership Guy Podcast
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The Importance of Price Discrimination in Car Finance
The good buying dynamics are just very different between these two audiences. And so there is the ability to do some price discrimination. So you can select into this audience and not that one. And then be your ability to mark up these loans is better on this non-prime audience. Where you might make, you know, 2% on a prime buyer. That can be 6 to 10% on a subprime buyer. The biggest driver of, of margin for them is being able to build this entire stack of debt.
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