Page 35 - GIADA-Feb-2018-Final
P. 35

DEALER INSIGHT





        Report Claims Dealers Discriminate in


        Auto Finance




        By Ted Craig
        A   recent   study  claiming  racial  dealerships in eastern Virginia. The  options than their white counterparts for
        discrimination in auto sales is getting  investigation used standard paired  the exact same vehicle. The FHA claims
        plenty of national attention. The report,  testing methodology. Within each paired  dealers  helped  white  testers  by  offering
        "Discrimination When Buying a Car:  test, one white tester and one non-white  rebates or helping to bring down interest
        How The Color of Your Skin Can Affect  tester visited a car dealership to obtain  rates more often than they did for non-
        Your Car-Shopping Experience,” was the  purchase and financing information for  white testers. Non-white testers were
        basis for pieces on the national news  the same car. In each case, the NFHA  presented with higher-cost financing
        broadcasts from CBS and NBC, among  says the non-white tester was more  options 62.5 percent  of the time,  even
        others. The report comes from the  creditworthy than the white tester. The  though they were better qualified than
        National Fair Housing Alliance (NFHA).  investigation found that testers of all  their white counterparts. White testers
        According to its mission statement, the  races had difficulty obtaining concrete  were offered more financing options 75
        NFHA  is  “dedicated  solely  to  ending  and transparent information regarding  percent of the time. On average, non-
        discrimination in housing.”          car  pricing,  interest  rates,  and  finance  white testers would have paid an average
                                             options for  which they  qualified.  of $2,662.56 more over the life of the loan
        The NFHA said it recently conducted  However, the NFHA says non-white  than less-qualified white testers the study
        an investigation of eight franchise  testers often received more costly pricing  claims. n






























                                                                                   28-day      buy      Modern on-Site
                                                                                    Float      and     and recon Facility
                                                                                                        Mechanical Shop
                                                                                   Up to $6,000   Sell  coMpany-owned
                                                                                   eligible For  online  tranSport
                                                                                     Float











                                                                                 GIADA Independent Auto Dealer FEBRUARY 2018  |  33
   30   31   32   33   34   35   36   37   38   39   40