Credit Risk and Loan Defaults: High exposure to subprime borrowers means a significant risk of loan defaults, especially during economic contractions or periods of high unemployment, directly impacting profitability.

Economic Sensitivity: Their customer base is highly susceptible to negative macroeconomic trends like recessions, inflation, and rising unemployment, directly impacting customers' ability to make timely payments.

Used Vehicle Market Volatility: Fluctuations in used car prices can impact the value of their inventory and the collateral backing their loans, potentially increasing losses on repossessed vehicles and impacting sales margins.