We study pricing and contract design in the subprime auto sales market. We develop a model of the demand for ﬁnanced purchases that incorporates both adverse selection and moral hazard eﬀects, and estimate the model using detailed transaction-level data. We use the model to quantify selection and repayment problems and show that diﬀerent contracting terms, in particular car price and required down payment, resolve very diﬀerent pricing trade-oﬀs. We also evaluate the returns to credit scoring that allows sellers to customize ﬁnancing terms to individual applicants. Our empirical approach shows how standard tools for analyzing demand and supply in traditional product markets extend to contract markets where agreement and performance are separated in time, so ﬁrms care about both the quantity and quality of demand.