Auto loan industry anything but color blind
Simply put, blacks pay an average of 7% APR for auto loans, while whites pay an average of 5%. That is a pretty big difference.
“It’s hard to believe that any differences in creditworthiness explain all of these rate gaps,” said Stephen Brobeck, executive director of the Consumer Federation of America. “They size you up, the car salesmen and finance and interest guys. They must think African-Americans are more vulnerable to a markup.”
This trend is resulting in lawsuits, though, according to the NCLC, which has settled 11 cases with finance companies recently on terms it believes will end those lenders’ discriminatory practices.
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