Why You Should Avoid Subprime Auto Loans

Is this product really beneficial to society as some quoted in this article indicate? Or does subprime auto debt entice consumers to buy a more expensive vehicle than they need? If nearly 50% will default, it's hard to see how the product is overall beneficial to society. Not to mention the amount of resources drained from limited resource consumers via fees and exorbitant interest rates. Consumers would be far better off buying a much cheaper car for cash if that is an option. 

Santander is a big dog in this game and focus of this article. Santander operates via a holding company of which the two largest subs are Santander Consumer (the subprime auto lender) and Santander Bank NA. The interactions among the Santander US entities is interesting to note (credit risk transfer and related party financing for example.