Determinants of automobile loan default and prepayment
Abstract: The authors examine whether a borrower?s choice of automobile reveals information about future loan performance. They find that loans on most luxury automobiles have a higher probability of prepayment, while loans on most economy automobiles have a lower probability of default, even when holding traditional risk factors, such as income and credit score, constant.
Keywords: Automobiles - Prices;
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2008
Issue: Q III