I'm a little unsure how to proceed, just invest & make money off the B/s growth of the new secured lending product, and improved SP for the next 30 months.
Or be more circumspect : does the management team have any Auto experience (secured lending), are they aware of the CCC, what's the lending entity, and there's no comment on collections. I know it's not the sexy part of online lending, but they're going to need a good collections partner. These aren't personal loans (PLs), they're hard assets, that need a collections department who know how to negotiate with people who's bills are stacking up, know Consumer collections policy - and how they're going to locate the asset & repossess. But like all IT companies, they don't appear to be worried about arrears or collections. The loss difference on getting the car back against it disappearing in to the ether, is approx $10-12k per vehicle, forget a 2% loss ratio...a few of those in your first 12 months will quickly blow up your provisions.
GLTAH but beware the sleeping giant of finance products (arrears & losses), anyone can sell at the front end, but it's the true bottom line that counts.
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