African-Americans Can CombatDiscrimination In Auto Lending With CUs
WASHINGTON - (02/16/06) African-American consumers paysignificantly higher rates on auto loans on average than do otherAmericans, according to a new survey by the Consumer Federation ofAmerica. The CFA found that African-Americans pay an average autoloan rate of 7.5% compared to 6% for most borrowers. On a six-year,$20,000 car loan, this 1.5 percentage point difference would add upto about $900 in additional interest payments. The group urgedAfrican-Americans to talk to their bank or credit union first aboutfinancing before taking the dealer financing. The difference inauto loan rates between African-Americans and other Americans wasrevealed by an extensive survey, conducted by the Opinion ResearchCorporation in November 2005, of more than 2,000 adult Americans.The survey also revealed that the proportion of African-Americanswith auto loans (29%) is nearly as high as the proportion of otherAmericans with these loans (33%).