Ford car loans cost Hispanic buyers more, research shows

El Paso Times ^ | Thursday June 20, 2002 | Tony Pugh

[4America]

WASHINGTON -- A new study of more than 6 million car loans made by Ford Motor Credit Co. between 1997 and 2001 finds that Hispanic buyers -- regardless of their credit history -- paid significantly higher interest rates than non-Hispanics. The difference averaged roughly $266 more per loan.

The study, the largest of several recent surveys of car-loan data for racial or ethnic patterns, attributed the additional costs to extra finance charges tacked on by dealers. The research was paid for by attorneys who are suing Ford Motor Credit of Dearborn, Mich., for alleged discrimination against Hispanic car buyers.

The company, a Ford Motor Co. subsidiary, denied the allegations. It will file a response to the study next week, spokesman Dan Jarvis said. He said the study was seriously flawed and highly subjective.

"They paid a statistician to come up with findings to support their allegations," Jarvis said. "We never see the age, gender or race of the customers who are looking for the loans. ... We would never discriminate based on age, race or ethnicity.

"It's not the way we do business here at Ford."

Ford, like most auto lenders, allows dealers to add a markup of a few percentage points to the interest rate the company will charge a borrower. The additional money generated by the markup is either split with the lender or pocketed in full by the dealer. Typically, the borrower is told he or she does not qualify for lower, advertised interest rates.

The suit claims Ford fraudulently conceals markup costs from buyers and "directs the dealerships to maintain this practice in secret."

[mdittmar]

Do you know how to save a lawyer from drowning?:)

[Banjoguy]

As a matter of fact, it is the way they do business at Ford. Here in Orlando, all but one of the Ford dealerships are staffed with con men and women, especially in the service departments where they will steal you blind.

[Poohbah]

Why would you want to?

[sawsalimb]

Why would anyone want to?

[mdittmar]

Ha!

I love that joke

[freecolorado1]

Car dealerships exist to make profits by charging ANYONE as much as they think they can get away with. If hispanics are getting ripped off by Ford dealers its their own dam fault. They need to learn how to haggle better.

[maximus@Nashville]

Walter Williams pointed out last week, while hosting for Rush, that minority owned banks charge a higher rate of interest to minorities than do non-minority owned banks. No one could get a judgement against them for descimination, but a jury of people too stupid to get out of jury duty will take the big, bad, corporation to the woodshed for some heavy monitary chastisement.