I'm surprised to hear that their customers are able to make enough payments to keep the financing arm profitable. I would have expected enough of them to eventually become unable to do so and default, and then they'd have to go through repo and stuff and chalk that off as a loss.
Quote:
Originally Posted by AstulzerRZD
They can’t command high MRSP and 9% interest the way Toyota/Honda can
But per their 10K filing, financial arm is actually keeping them afloat, very profitable.
Make lots of money from lower credit buyers because of higher interest.
Moving more units also means higher margins since factory fixed costs per unit are lower.
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