Black and brown drivers often pay far more than whites for their car loans, research shows.
“Much research documents how access to a reliable vehicle provides households with substantial economic advantages, especially those who are poor, black and/or Hispanic. These advantages are most pronounced in metropolitan areas where communities are more geographically segregated, like Chicago. Unfortunately, minorities often face a hidden cost that makes purchasing a vehicle hundreds or potentially thousands of dollars more expensive: discriminatory markup of their indirect auto loans” that account for 80% of the market.”
By Jonathan Lanning, a senior policy economist at the Federal Reserve Bank of Chicago, for ChicagoBusiness.com