[Detector]

I just don't get the logic?

If a person is a higher risk, then by all means keep their limit low, which is what they do. What I don't get is why would they expect a higher risk person to pay $10,000 for a car others pay $5,000 for? They lower their credit limit but raise the interest rate to make them end up paying far more than their limit.

Example: They won't sell you a $10,000 car because your credit is bad, but they will sell you a $5,000 car that with interest you will end up paying $12,000 for.

I honestly think it has far less to do with being a higher risk, and much more about taking advantage of a situation.