Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans
Apply for a Loan | Best Auto Loans | Best Bad Credit Auto Loans | Best Bad Credit Loans | Best Bill Consolidation Loans | Best Cash Advance Loans | Best Credit Cards | Best Credit Repair Tips | Best Debt Consolidation Loans | Best Free Credit Reporting Tips | Best Home Equity Loans | Best Mortgage Loans | Best Pay Day Loans | Best Personal Loans | Best Products on the Internet | Best Unsecured Loans
Great Financial Advice
Apply for a Loan
Latest Financial News
Rate Lock Advisory
Best Products
Join Our Mailing List
Contact Us
Loan Articles Index
Auto Loans
Bad Credit Auto Loans
Bad Credit Loans
Bill Consolidation Loans
Cash Advance Loans
Credit Cards
Credit Repair Tips
Debt Consolidation Loans
Debt Reduction Loans
Foreclosure Loans
Free Credit Reporting Tips
High Risk Loans
Home Equity Loans
Home Loans
Lawsuit Loans
Mortgage Loans
Pay Day Loans
Personal Loans
Products on the Internet
Real Estate Services
UK loans
Unsecured Loans
Loan Article Index
Loan Articles A-G
Loan Articles H-Q
Loan Articles R-Z
Mortgage Calculators
Mortgage Calculator
Mortgage Amortization Calculator
Rent vs. Buy Calculator
How Much Can I Afford Calculator
Auto Payment Calculator
Click here to Sign up for Email and Newsletter

 

redhotloantips fat loss


GMAC Car Loan, The In's And Out's

Written by: Sarah Williams

Late in the year 2003, the auto financing industry experienced a pandemonium when several discrepancies in car loan markups and interest rates were found in the nation's second largest auto lender, GMAC (General Motors Acceptance Corporation).

In a report filed by Vanderbilt University business professor Mark A. Cohen, African Americns were said to be almost three times as likely as whites to be charged markups on car loans which GMAC financed. When markups are added to car loans, the borrower is generally charged a higher-than-normal interest rate.

With these markup charges, black borrowers generally paid an average of $1,229 in extra car loan interest while whites paid only an average of $867 on the same loan financed by GMAC. Cohen's analyses was based on the study of more than 1.5 million GMAC car loans made between 1999 and April of the same year Cohen filed the report.

The report said that black postal workers paid an average of $811 on their GMAC car loans more than white postal workers. The report, which was filed Aug. 29 in U.S. District Court in Nashville, further stated that black teachers paid an average of $595 more than white teachers. Even black employees of GMAC paid more on their car loans compared to their white counterparts.

In his report, Cohen wrote, "I have conducted numerous statistical tests of the data and conclude that the disparate impact against African Americans cannot be explained by creditworthiness or other legitimate business factors."

The differences in GMAC car loan markup charges and interest were found to occur nationwide. Wisconsin residents experienced the big difference where blacks paid five times as much as whites in GMAC car loan markups. Cohen said in his report that based on GMAC data, blacks were less likely to receive preferential interest rates, let alone be offered. Sixty-one per cent of whites receive interest-free percent loans and other special financing incentives compared to thirty-six per cent of African Americans.

James Farmer, the GMAC spokesman, said that the company is reviewing Cohen's report. He said that the company does not want to comment on their car loan policies until such a time that they finish the review. He also said that GMAC does not ask for the race of the borrower in their car loan applications and they don't require that information from them.

In his report, Cohen said that he had access to 6.2 million GMAC car loan transactions. However, he limited his analysis to 1.5 million cases where he could determine the race through driver's licenses.


About the Author:

Learn how to eliminate speeding tickets. Feel free to reproduce this article as long as there is an active hyperlink accompanied with it.


Read more articles by: Sarah Williams

This article is distributed by: www.redhotloantips.com

Other Related Articles:

No Income Verification Home Equity Loan
A no income verification home equity loan is a second mortgage loan that does not require you to provide income documentation to qualify for the loan. This type of loan is great for homeowners who need a home equity loan but have hard to...read more

Low Interest Payday Loan - How To Figure Out The Apr Of A Payday Loan
The annual percentage rate (APR) of a payday loan is a helpful tool to compare rates of lenders. According to the "Truth in Lending Act," passed by Congress, payday companies are to provide you with the APR. Some companies list this...read more

3 Important Things To Consider Before Taking Out A Personal Loan
Personal loans are a simple and easy way to borrow usually between 1000 and 25000 and can be a good way to finance the purchase of a car, holiday, home improvement or anything else that requires an up front lump sum payment. The main...read more


Return to Home

468x60

Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map