Abstract
The lifecycle hypothesis is employed in this study to examine the consumer rationality of automobile buyers. Rationality of individual decision on each auto loan contractual attribute, including down payment, interest rate and loan maturity is studied with respect to personal financial background and education level. Consumers are responsive to not only current income, but also financial assets and expected income respectively as well when they make auto loan choices. Liquidity constrained consumers have different preference pattern of loan choices. Education improves consumer rationality by raising their awareness of important contract terms.
Advisor
Verdon, Lisa
Department
Business Economics
Recommended Citation
Li, Sihan, "Consumer Rationality of Auto Loan With Respect to Personal Financial Background and Education" (2011). Senior Independent Study Theses. Paper 763.
https://openworks.wooster.edu/independentstudy/763
Keywords
auto, loan, rationalit, financial literacy, subprime, lifecycle hypothesis
Publication Date
2011
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2011 Sihan Li