Does anyone else find this report to be flawed?

Question

http://news.yahoo.com/s/ap/20070507/ap_on_bi_ge/auto_loans_race

Isn't this a very small sample, and with very vague information upon whom was sampled, to reach such a blanket conclusion? What was the deviation in the sample? The ages? The location? Are they Sure it is racism or were there other unreported factors?

Answer 1

I find this "news" article absolutely ridiculous. It's once again the left wing liberal media beating the drum to find SOME or ANY evidence of racism in any and all industries they possibly can.
Did they take into account credit scores? Did they take into account WHERE these cars were bought or what make model? For example, JD Byrider probably charges a LOT higher interest rate than financing through Dodge.
Yes it does mention about GMAC and a lawsuit. However, I've seen the Al Sharptons and the Jesse Jacksons putting pressure on companies just for that payoff. They blackmail them (no pun intended) for these class action suits.
Here in Milwaukee, there was a recent survey that blacks were 3 times as likely to get pulled over than whites. However, the neighborhoods where the "survey" was conducted was mostly black. I'm surprised the percentage wasn't higher! Then the same "survey" said that the blacks were more likely to get searched. In the high crime neighborhood where the "survey" took place, they never took into account prior criminal records in the "survey".
This report is just as ridiculous as the one about NBA refs call more fouls on the opposite color. Ridiculous and disgusting. I, for one, am sick of it.

Answer 2

Everytime I read something like this I automatically think that the reporter wrote the story first and then set out to find a set of "facts" to support the story.

Could it be that blacks, as a group, have lower FICO scores which would cause the lenders to charge higher rates? Did the reporter research this angle? I doubt it.

I used to work at a bank in the auto finance department and we charged different rates based on the state of residence of the applicant. Was it a coincidence that the poor southern states with a higher percentage of blacks in the population paid the highest rates?

This is just another story to keep attention off of the true problems facing blacks in America - black on black crime, drugs, babies with no fathers, jails overflowing with black men, etc.

Answer 3

I am in the auto finance business and I here this crap all of the time.

The only reason anyone is charged a higher interest rate is because their credit deserves it. All lenders are color blind, all they see is a application, they have no idea what a persons color is when they make the decision to loan them money.

Add to this the fact that applications are transmitted over the net today and most lenders have computers that make the decisions based on the information submitted ny the dealers and it's simply impossible for there to be any bias in the decision making process.

Answer 4

I didn't even bother checking the link. Based on your question alone, I concluded the 'report' refers to a survey of some sort without providing the underlying data. That is all the information I need to conclude the actual data is either insufficient to draw any conclusion or does not support the conclusion given.

Answer 5

i think it's b.s. and probably coincidence that the people in that small group got those rates.. it doesn't matter your race, all you are to a creditor is a bunch of numbers.. anyone else that says otherwise is just looking to complain or sue and get some free money!!