Subprime auto lenders are willing to finance electric vehicles, but they say few among their credit-challenged consumers are seeking those models.
Credit Acceptance Corp. Chief Treasury Officer Doug Busk said on an earnings call Aug. 1 that his company financed some EVs, but not many.
"The chief barrier there is just price," Busk said. Credit Acceptance's target customer had difficulty affording EVs, he said.
The average EV loan covers an amount 56 percent larger than a loan for an internal combustion engine model, according to Equifax data from the third quarter of 2018 through the second quarter of 2022.