Determinants of automobile loan default and prepayment

Sumit Agarwal, Brent Ambrose and Souphala Chomsisengphet

Economic Perspectives, 2008, vol. 32, issue Q III, 17-28

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 (search for similar items in EconPapers)
Date: 2008
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