The Capitalization of Consumer Financing into Durable Goods Prices

• 成果类型: Article
• 署名作者: Argyle, Bronson; Nadauld, Taylor; Palmer, Christopher; Pratt, Ryan
• 署名单位: Brigham Young University; Massachusetts Institute of Technology (MIT); National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12977
• 发表日期: 2021
• 页码: 169-210
• 关键词: debt; MARKET

摘要

Using loan-level data on millions of used-car transactions across hundreds of lenders, we study the consumer response to exogenous variation in credit terms. Borrowers offered shorter maturity decrease expenditures enough to offset 60% to 90% of the monthly payment increase. Most of this is driven by shifting toward lower-quality cars, but affected borrowers offset 20% to 30% of a monthly payment shock by negotiating lower prices for equivalent cars. Our results suggest that durable goods prices adjust to reflect credit terms even at the individual level, with one year of additional loan maturity increasing a car's price by 2.8%.