Smart Car of America Forum banner

1 - 6 of 6 Posts

·
Registered
Joined
·
11 Posts
Discussion Starter #1
Filed under: Car Buying

Findings from a recent study could potentially change the way banks pick interest rates for new car loans. The study, run by Penn State's Smeal College of Business professor Brent Ambrose, found the probability of car owners defaulting on their loans was actually affected by the make of the model.

Looking at the outcomes of 6,996 car loans between January 1998 and March 2003, researchers found that owners of European and Japanese brands were 50% and 56% respectively less likely to default on the their loans compared with owners who bought American. Basically, the eggheads are saying that loans for American brands should have higher interest rates than foreign brands to compensate for the higher default risk. Saturn was one of the worst performers in the survey, with the average owner of a Saturn 22 times as likely to default on a loan as a Toyota owner.

The research has the potential to see lenders judge loan costs by the make and model of a car, just as insurers do when calculating premiums. The news is sure to be a blow to the already struggling Detroit 3, but, we suspect any changes to lending criteria are still some way off.

[Source: Smeal College of Business via Wired]
Read | Permalink | Email this | Comments
</img> </img>


More...
 

·
Smart A**
Joined
·
1,141 Posts
Those Japanese government officials are getting real creative with ways to create trade barriers in order to protect one of their primary industries! I'm impressed.
 

·
Registered
Joined
·
50 Posts
:confused:I thought this was a SmartCar forum. Why do we allow a spammer to fill the forum up with junk-spam not having any remote connection to SmartCar.

IMO . . the News Reporter should go start his own "All Auto Forum" or blog, and leave this site to SmartCar enthusiasts.
 

·
Smart A**
Joined
·
1,141 Posts
:confused:I thought this was a SmartCar forum. Why do we allow a spammer to fill the forum up with junk-spam not having any remote connection to SmartCar.

IMO . . the News Reporter should go start his own "All Auto Forum" or blog, and leave this site to SmartCar enthusiasts.
I'm an auto enthusiast well ahead of being a SmartCar enthusiast. I'm guessing most of us fit this category. I like to see random and interesting information on all different makes and marques in this forum with, of course, an onging focus on SmartCars. I'm finding the news blurbs that New Reporter provides to add some real depth to a forum that is otherwise devoid of anything newsworthy as a result of Mercedes' and Penske's tight lips.
 

·
Registered
Joined
·
2,074 Posts
:confused:I thought this was a SmartCar forum. Why do we allow a spammer to fill the forum up with junk-spam not having any remote connection to SmartCar.
I believe that this forum is called "Life Beyond Smart > The Car Lounge". Seems like it is for discussion of non-smart automotive topics.

alan
 
1 - 6 of 6 Posts
Top