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The Review of Economics and Statistics Vol. 51 No. 4 1969

The Cost of Financing Automobile Purchases

Frank Stafford; William Dunkelberg

Abstract

HE relationship of finance charges to T terms of consumer installment contracts (such as loan size and maturity) and to regional variables has been well established in the literature [8] [12]. Our study demonstrates the importance of the characteristics of the borrower, particularly his overall wealth position, in determining the cost of credit. Although this study examines the determinants of automobile finance rates, the general results should be applicable to the financing of other consumer durables.

DOI
10.2307/1926438
Volume
51
Issue
4
Pages
459
Sources
openalex crossref

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