Retail margins are far better than lending margins. A furniture store owner once asked me how middle tier finance companies could charge such high rates (18% range) on their paper to the customer. He thought that an insult yet had no problem taking a standard charge card form a customer (21%) and looking at his books his 200% mark up looked very attractive. Did he have overhead sure, paid his staff waitress wages and commission then had a smirk on his face telling me is nicked and seconds area at 50% were still well above his cost.

When a guy stops paying on a car, you go get it back. A guy stops paying his loan, you garnish wages and he files BK13...you got nothing.