And lenders can give high credit consumers more appropriate pricing as well. It allows you to serve more people. In the past you had to turn people down. You're able to offer credit to people who wouldn't otherwise get it. But some consumer experts are skeptical about the benefits of risk-based pricing.
Lenders have more information.
Many dealers will say you don't have the credit when you do. Folks with dinged credit should be especially wary. It's not to say every lender is out to bleed as much interest as possible out of every loan customer, but it's important to keep your guard up. The way to make risk-based pricing work for you rather than against you is to shop around for financing. It brings more people into the fold.