(NNPA)—New research by the Center for Responsible Lending finds that consumers of color still report paying higher interest rates on dealer-financed car loans than other consumers. This disparity is even more disturbing given that Black and Latino consumers report making more of an effort than Whites to negotiate their interest rates.  Thirty-nine percent of Latinos and 32 percent of Blacks reported negotiating their interest rate, compared to only 22 percent of White buyers.

CRL’s new report, Non-Negotiable: Negotiation Doesn’t Help African-American and Latinos on Dealer-Financed Car Loans, is the first research on the impact of shopping habits as well as information consumers report receiving from car dealers and disparities related to “add-on” products. Findings were based on an October 2012 phone survey of 946 consumers.

The report identifies three specific sales practices as the main culprits behind higher financing costs for buyers of color:

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