[asphaltgambler]

Buy here / pay here business model works great with relatively cheap ( less than $15K) vehicles. Largely because of % of down payment and % of 'fees' or ' paks' on that amount or less works very favorably. If the deal is structured properly, the total cost to the dealer is recouped in 6 months or less. After that, gravy train money even if they repossess it.

Average repo's in a business like that, depending on area can be as high as 25%.

Now take a new vehicle where today the average cost is $30K - that risk is much, much higher for dealer and whoever is underwritting it. Plus the fact a new vehicle is only new once.