Submission + - Geekanomics: US car loans default 50% over foreign (networkworld.com) 1
coondoggie writes: "Researchers today said customers that take auto loans on "American cars should have significantly higher interest rates to compensate for higher default risk," than customers who buy Japanese or European cars. Loans secured for European cars and Japanese cars are 50% and 56%, respectively, less likely to default than loans on American cars. In a forthcoming book, Brent Ambrose, professor of real estate at The Pennsylvania State University's Smeal College of Business, and his co-authors find that the probability that borrowers will default on their auto loans is affected by the type of car that is financed. The authors looked at the performance of 6,996 auto loans from January 1998 to March 2003. Some other interesting findings in the research include: Loans for GM Saturns had default hazards 22 times higher than the default hazard of Toyotas. Loans for Mazdas were six times more likely to default than loans for Toyotas.
http://www.networkworld.com/community/node/18416"
