Originally appearing in Los Angeles Times/ De Los on July 19, 2023, Alejandra Molina looks at a new Brookings Metro report that examines the underlying causes of the wealth gap between Latino and white families and cites John Van Alst‘s report: Time to Stop Racing Cars: The Role of Race and Ethnicity in Buying and Using a Car.
The report cites findings from the National Consumer Law Center showing that Latino and Black buyers face higher car financing costs, even if their credit scores and incomes “are just as good as those of white consumers.” And Latinos in 44 states paid higher percentage markups for service contracts than non-Latinos.
“Seeing that not all debt is created equally or fairly, Latinos would benefit (and could likely see some of their vehicle-related debt decrease) if government officials and policymakers bolstered efforts to target discrimination in auto sales and lending,” the report reads.
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