Download This PaperDeterminants of Automobile Loan Default and Prepayment
12 Pages Posted: 19 Sep 2008
Date Written: September 17, 2008
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: consumer debt, auto loans, household finance, prepayment, default, Financial Institutions and Services, Duration Analysis, Personal Finance, Asymmetric and Private Information
Suggested Citation: Suggested Citation
Agarwal, Sumit and Ambrose, Brent W. and Chomsisengphet, Souphala, Determinants of Automobile Loan Default and Prepayment (September 17, 2008). Economic Perspectives, Vol. 32, No. 3, 2008, Available at SSRN: https://ssrn.com/abstract=1269525
Souphala Chomsisengphet
Government of the United States of America - Office of the Comptroller of the Currency (OCC) ( email )
400 7th Street SW
Washington, DC 20219
United States
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.