Car Loans Research Articles

Motivational Factors and Achievement of Classroom Teaching Effectiveness in Nigerian Public Secondary Schools

Abstract This paper examined the effect of teachers' motivational factors on the achievement of classroom teaching effectiveness in public secondary schools in Nigeria. A survey research design was used for the study. The respondents were 200 qualified teachers, both males and females randomly selected from 10 public secondary schools in Agege Local Government area of Lagos Nigeria. The research instrument for the study was the questionnaire titled Teachers' Motivation Questionnaire (TMQ). The data collected were analyzed using percentage and Pearson Product Moment Correlation Coefficient (r-test) at 0.05 level of significance. The findings showed that if teachers are adequately motivated, they would discharge their duties in the classroom efficiently and effectively. Based on the findings, it was recommended that to ensure classroom teaching effectiveness, a teacher needs not only adjustment and regular payment of salaries and allowances, but the right technology and facilities for efficiency and effective classroom management. Government, parents, and the society were also asked to assist by providing motivational incentives such as housing, car loans, and subsidized health care services as well as organizing skill-development seminars and workshops for teachers. Teaching personnel should be led and not bossed to be effective and efficient. Keywords: Motivational factors, achievement, classroom, teaching effectiveness

(S)Cars and the Great Recession

United States households' consumption expenditures and car purchases collapsed during the Great Recession and more so than income changes would have predicted. Using CEX data, we show that both the extensive and the intensive car spending margins contracted sharply in the Great Recession. We also document significant cross‐cohort differences in the impact of the Great Recession including a stronger reduction in car spending by younger cohorts. We draw inference on the sources of the Great Recession by investigating which shocks can explain household choices in a 60 period life‐cycle model with idiosyncratic and aggregate shocks fitted to aggregate and life‐cycle moments. We find that the Great Recession was caused by a combination of large aggregate income and wealth shocks, while cross‐cohort adjustment patterns imply a role for life‐cycle income profile shocks. We also find a role for car loan premia shocks in accounting for car spending and car loans.

Do Lenders Price the Brown Factor in Car Loans? Evidence from Diesel Cars

Do Lenders Price the Brown Factor in Car Loans? Evidence from Diesel Cars

Application of Continous Time Model in Prediction of Loss Reserves in Credit Insurance for Asset-Based Lending Companies

Asset-based lending companies and other loan providers are exposed to risk of loan defaults by borrowers. To reduce this risk, these companies acquire credit insurance. Thus when the borrower defaults in payment, the insurance company covers a percentage of the outstanding balance which generates a way to lessen and spread credit risk that the lender incurs. Therefore there are a number of methods put in place such as frequency-severity and hazard rate models used to value credit insurance. Valuing of credit insurance for asset-based lending companies is a challenging task especially in Kenyan market, where in the case of a borrower’s default, the process for recovering of the collateral will last a longer period of more than a year and where data on the borrower’s behavior of payment is of poor quality or generally unavailable. The existing methods do not consider the time to repossession of the collateral in case of loan default. Our proposed model takes into account time to repossession of the collateral and can be used in emerging market economies where other available methods may be either unsuitable or are too complex to implement due to lack of enough data. Therefore, this paper incorporates a continuous time model to forecast loss reserves in credit insurance for asset-based lending companies. First, we establish a discrete-time model to describe delinquency of credits in loan insurance product. Martingale properties, Replicating of asset portfolio strategy and Itô’s calculus are used to obtain results on expected values of future losses of credit insurance products. Secondly, we used the Black-Scholes model to develop a continuous-time model to forecast future losses in credit insurances. This is constructed by linking the latter from the discrete-time (Binomial) model using the methods of stochastic calculus. We estimated the loss reserves by applying the Geometric Brownian Motion on data of outstanding balances of 30% of 100 loanees from car loan business with assets valued at between 1 million and 10 million, to predict the probability of default of the borrower.

Rancang Bangun Sistem Informasi Pembiayaan Kredit Mobil Pada PT Mandiri Tunas Finace Pontianak

PT. Mandiri Tunas Finance is a car showroom company that serves car sales on credit, which is located on Jl. Ayani Megamall Complex Block B. No. 35 36.PT. Mandiri Tunas Finance is a company as an intermediary or service that helps or cooperates with partners in the car loan process. The partner is a limited liability company that sells car units on credit, but if the prospective buyer wants a car loan, the partner will obtain data on the prospective customer's credit application which will then be processed through Mandiri Tunas Finance. Therefore, there are still many partners who need a place to disseminate information on car units with the credit method so that they are widely known by external parties and make it easier for the car loan financing process. So the author makes a website-based car loan financing application at PT. Mandiri Tunas Finance uses the PHP (Hypertext Processor) programming language, where this application is made for prospective customers to be able to access the website to apply for a car loan easily and simply select the desired car unit on the website

Automatic Feature Engineering-Based Optimization Method for Car Loan Fraud Detection

Fraud detection is one of the core issues of loan risk control, which aims to detect fraudulent loan applications and safeguard the property of both individuals and organizations. Because of its close relevance to the security of financial operations, fraud detection has received widespread attention from industry. In recent years, with the rapid development of artificial intelligence technology, an automatic feature engineering method that can help to generate features has been applied to fraud detection with good results. However, in car loan fraud detection, the existing methods do not satisfy the requirements because of overreliance on behavioral features. To tackle this issue, this paper proposed an optimized deep feature synthesis (DFS) method in the automatic feature engineering scheme to improve the car loan fraud detection. Problems like feature dimension explosion, low interpretability, long training time, and low detection accuracy are solved by compressing abstract and uninterpretable features to limit the depth of DFS algorithm. Experiments are developed based on actual car loan credit database to evaluate the performance of the proposed scheme. Compared with traditional automatic feature engineering methods, the number of features and training time are reduced by 92.5% and 54.3%, respectively, whereas accuracy is improved by 23%. The experiment demonstrates that our scheme effectively improved the existing automatic feature engineering car loan fraud detection methods.

The Role of Brand Image in Mediating the Influence of Country of Origin Image and Price on Purchasing Decisions (Study Case on Car Credit Products PT. Maybank Indonesia Finance)

The development of transportation, especially four-wheeled vehicles, is very fast, which can cause finance companies to move dynamically. The development of finance companies today leads to intense competition. The increasing need for cars and other necessities of life drives people to buy cars in cash or credit financing (Leasing). One of the car loan financing companies in Indonesia is PT. Maybank Indonesia Finance. Before purchasing the product they want, some consumers will assess and see where this product company comes from. In addition to COO, price is also one of the determining elements for consumers to purchase a product or service they want. When the image of the country of origin is good, and the price set is cheap, it will make consumers perceive the idea of the product and will later influence purchasing decisions. Therefore, this study wanted to examine the role of brand image in the mediating country of origin image and price on purchasing decisions. This research was conducted by non-probability sampling method with purposive sampling type. Researchers distributed questionnaires to 100 Maybank Finance consumer respondents in Indonesia who had purchased Maybank Finance car loans in 2018-2020. The analysis results conclude that the image of the country of origin has no positive and significant effect on buying decisions. Price has a positive and significant effect on purchasing decisions. The idea of the country of origin has a positive and significant effect on brand image. Price has a positive and significant effect on brand image. Brand image has a positive and significant effect on purchasing decisions. Brand image mediates the idea of the country of origin on purchasing decisions. Brand image negotiates price on buying decisions.

EFFECT OF PRICE PERCEPTION AND BRAND AWARENESS ON SERVICE QUALITY MEDIATED BY PURCHASING DECISIONS

The finance company industry experienced much pressure in 2020 due to the covid-19 pandemic, this condition made business activities and social life almost stopped. This research was conducted at PT. Maybank Indonesia Finance is one of the financing companies in Indonesia that is currently proliferating. Purchasing decisions have an essential meaning for a financial institution because credit is one of the directives of funding by financial institutions to people who want to get an item on credit as the institution's main business. In determining a decision to purchase products and services, consumers perceive the goods and services they buy, such as the perception of the price of an item or service in making a purchase, and consumers can recognize the company's brand awareness. This research was conducted by nonprobability sampling method with purposive sampling type. Researchers distributed questionnaires to 100 Maybank Finance consumer respondents in Indonesia who had purchased Maybank Finance car loans in 2018-2020. The results of the analysis conclude that price perception has a positive and significant effect on purchasing decisions. Brand awareness has a positive and significant effect on credit purchasing decisions. Price perception has a positive and significant effect on service quality. Brand awareness has a positive and significant effect on service quality. Service quality has no positive and significant effect on purchasing decisions at Maybank Finance. Service quality mediating between brand awareness and purchasing decisions is not significant.

Credit supply shocks and household consumption in Russia

The paper presents a comparative analysis of the reaction of different consumer groups to the bank credit supply shocks. As parameters of consumer heterogeneity, we consider differences ( i ) in the form of home ownership (households with and without mortgages and tenants) and ( ii ) in the form of credit (households with large debt (mortgages, car loans), households with small (consumer) credit and without loans). For empirical analysis we use RLMS-HSE longitudinal Household Panel Survey for the period from 2006 to 2019, which covers two episodes of the credit crisis and post-crisis recovery. Bank credit supply shocks are estimated using the standard structural vector autoregression (SVAR) model, which also identifies aggregate supply and demand shocks and monetary policy shocks. Our results show that with a positive credit supply shock, which is equivalent to a 0.5 percentage point reduction in the interest rate on loans, households with mortgages increase their consumption by 2.1—2.5% more than households without mortgages. The observed effect is significant, since the average annual growth rate of consumption of households with mortgages in our sample is 3.8%. Our results indicate that the Bank of Russia’s macroprudential policy, which uses countercyclical capital buffers (Basel III) as a tool, can be very effective in smoothing the consumption of households with mortgage debt.

Influence of Islamic Auto Financing Instruments on Financial Performance of Commercial Banks in Isiolo County Kenya

Purpose: The purpose of the study was to explore the influence of Islamic auto financing instruments on financial performance of commercial banks in Isiolo County Kenya.
 Methodology: This study used descriptive research design. The respondents were customer service officers and loan officers in the ten commercial banks in Isiolo County. They were be selected using census method. Data collection was done using closed-ended questionnaires and secondary data collected through analysis of report from 2017 to 2020. To ensure validity and reliability, pre-testing of questionnaires was done at Kenya Commercial Bank in Meru town. Coded data in SPSS 24.0 computer program analyzed quantitative and qualitative data using the descriptive statistics such as mean, percentage and standard deviation. Multiple regression was used to test hypothesis of the study. Tables, graphs and detailed explanations were used to present the final results of the study.
 Results: Options had a statistically significant relationship with financial performance. The respondents agreed that the lending terms of Islamic automobile financing have attracted diverse clients (mean of 4.78). However, in comparison with other statements, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans (mean of 3.83). The R value was 0.862 and R-square of 0.743. This indicated that Islamic auto financing instruments’ level of contribution towards financial performance was 74.3%. The Durbin- Watson value was 1.969. This value lied between 0 and 2 hence indicating that there was a positive correlation between auto financing instruments and financial performance. The significance value was 0.000 which was below 0.05 hence Islamic Auto financing instruments had a significant influence of financial performance. In addition, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans. This proved that the confidence that clients had on auto financing, was not purely on the nature and process of administration of the financing but also due to reliability.
 Unique contribution to theory, policy and practice: The study recommends that auto financing should be provided reliably by ensuring all client concerned are amicably handled by the banking staff. The various car loan officer should be trained on good customer service to as to ensure they sell well their products without necessarily losing new clients. The bank management should also diversify auto financing to cater for all categories of vehicles for expansion of their client base.

A new framework for examining creditworthiness of borrowers: the mover-stayer model with covariate and macroeconomic effects

We develop a novel extension of the mover-stayer model to allow for time-dependent variables such as macroeconomic factors and apply it to the repayment process for car loans. The MS model postulates a simple form of population heterogeneity, which is particularly well suited to describing the repayment process: a proportion of borrowers always repay on time (stayers), and a complementary proportion evolves according to a discrete-time Markov chain (movers), with an absorbing default state. In contrast to the literatures focus on the determinants of defaults, our extension examines the determinants of creditworthy borrowers (stayers). We model the probability of borrowers being stayers as a logistic function of their time-fixed covariates as well as of macroeconomic variables. The car-loans data set, obtained from a Polish bank, contains a large number of characteristics for each borrower and their repayment histories. The MS models' estimation from these data indicates that annual GDP growth is the only macroeconomic variable exerting a substantial effect on the stayers' probability: as GDP increases, so does the proportion of stayers. Because stayers are the most desirable borrowers, the proposed model should be useful to institutional lenders.

Price Attractiveness and Price Complexity: Why People Prefer Level-Payment Loans.

The improving sequence effect suggests that in choices between a rising earning and any other sequences, participants prefer the rising earning. Recent studies show that the improving sequence effect also exists in a loan context. As consumers have a strong preference for falling loan profiles, banks may consider to offer loans in which the loan repayments concentrate at the beginning of the loan term. In this paper, we examined the improving sequence effect in context of a car loan with three repayment plans expressed in temporally reframed prices (TRP). By regressing the evaluation of loan profiles on the perceived price attractiveness, price complexity, TRP and the interaction terms, we find that (1) the perceived price attractiveness and price complexity significantly predict the loan evaluation, and they also explain a significant proportion of variance in loan evaluation; (2) the TRP effect interacts with the improving sequence effect. Specifically, with the introduction of TRP, respondents prefer constant profiles over falling profiles. TRP may explain why level-payment loans are still popular in real world, though the improving sequence effect suggests otherwise.

Analysis and Design of E-Commerce Applications on CV XYZ With User Centered Design Method

Along with the rapid and sophisticated development of technology, it has had a huge impact in today's life. This is demonstrated by the increasing development activities and development of information technology. One of the means used for the development of information technology is the use of computers. The purpose of this research is to analyze and design a website-based E-Commerce application so that it can help salesmen to get as many car purchase costumer databases as possible in order to be followed up in order to realize car purchases, attract many customers and maintain customer loyalty in order to further improve the sales process on the CV. XYZ. The method used for is with user centered design where in this method selurus activity involves the user. The result of this study is to produce a website-based application system design with the application of E-Commerce so as to make it easier for costumers to know the information of car loan simulations and monthly promos available at CV dealers. XYZ and also facilitated by being able to access independently through PCs, laptops and by using smartphones whenever and wherever consumers are, so as to increase sales on CV. XYZ

Veblen was right: Conspicuous consumption and car loans in Russia

We study the connection between the social pattern of conspicuous consumption, on the one hand, and financialization, on the other. Our claim is that greater availability of consumer loans from Russian banks feeds consumerism and promotes the institution of conspicuous consumption. Cars have long been recognized as status symbols or ‘positional goods’ whose utility goes beyond their core functionality as a transportation means. The perception of social identity drives people to seek more expensive and fancy cars, while auto makers and car lenders deliberately foster consumer demand for them. We operationalize financialization with empirical evidence of bank financing of car purchase in the Rostov region of Russia. We find that leveraged car buying has taken root over the past 20 years. Getting a bank loan to buy an otherwise unaffordable car has become an acceptable social pattern. We see a sign of conspicuousness in the fact that the monetary income of households grows slower than the average price of a new car financed by a car loan, the amount of loans issued, and outstanding bank debt on car loans. Thus, households incur such expense by sacrificing other items including basic needs and their human capital development. The phenomenon that we study occurs among less affluent citizens rather than more affluent ones that Veblen focused on, and the range of cars serving as status symbols is broader than just luxury brands usually believed to be the object of conspicuous consumption. Our contribution to the literature is that a basic concept of institutional theory (conspicuous consumption) is combined with elements from other research approaches, namely social significance of bank lending, functional differentiation of credit, and the effects of financialization.

Retirees in Profile: Evaluating Five Distinct Lifestyles in Retirement

Retirees in Profile: Evaluating Five Distinct Lifestyles in Retirement

Innovations in distribution channel?a case of hero cycles

You would have surely heard about car loans @ 7.75% but have you ever come across ‘bicycle loans?’ In 2013, Hero cycles, the world's largest bicycle manufacturer announced that it will be tying up with microfinance institutions (MFIs) across India to ensure that the bottom of the pyramid (BOP) can get easy access to finances to buy bicycles. Creating a new sales channel using microfinance institutions (MFIs) to reach the weaker sections of society was a road never travelled. Bicycle industry is a price-sensitive industry because the domestic demand for bicycles comes from the low-income population. Also, in India the penetration of bicycles in rural areas is extremely poor. It is interesting to look at how the industry would reach the enormous untapped potential in the rural areas to maximize its bicycle sales through microfinance. The research paper intended to explore the genesis of a new sales channel by providing microfinance to rural women entrepreneurs. What were the challenges in creating a new sales channel? How the company overcame the challenges of the new sales channel? For the bicycle industry, it's a new, unconventional sales model and we need to figure out how far the industry can peddle on microfinance institutions (MFIs) to sell bicycles in India.

Credit Fire Sales: Captive Lending as Liquidity in Distress

We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated manufacturer to increase the cash collected from car sales via a credit fire sale: reducing loan-to-value in the intensive margin and relaxing lending standards in the extensive margin increases car sale down-payments, at the cost of future losses. We exploit quasi-exogenous variation in manufacturers' liquidity cost and need following the Volkswagen emissions scandal to identify the channel. A simple calibrated model shows that a standalone manufacturer would have to decrease car prices by 10% to generate the same liquidity of a credit fire sale.

COVID-19 and Auto Loan Origination Trends

We study the impact of the COVID-19 crisis on auto loan origination activity during 2020. We focus on the dynamic impact of the crisis across lending channels, Equifax Risk Score (Risk Score) segments, and relevant geographic characteristics such as urbanization rate. We measure a significant drop in auto loan originations in March‒April followed by a near rebound in May‒June. Originations remain slightly depressed until October and fall again in November‒December. We document the largest drop and the smallest rebound in the subprime segment. We do not find any suggestive evidence that used car loan originations exhibited patterns significantly different from the rest of the market. We also document a more pronounced impact in the Northeast and the Pacific, seemingly influenced by the higher urbanization rate in these regions. Bank-financed originations experienced the largest drop and the smallest rebound, thus resulting in a loss of market share and continuing a 10-year trend of bank share loss in auto lending. We find that the drop in auto loans originated by banks was particularly significant among subprime borrowers. The impact of the COVID-19 crisis across origination channels contrasts with the experience during the Great Recession when banks contributed the largest support to the auto loan origination segment during periods of stress and finance company-originated auto loans were depressed.

ORGANIZATIONAL CULTURE AND INTER-GROUP BEHAVIOUR IN GUARANTY TRUST BANK IN NIGERIA

The study empirically investigates organizational culture and inter-group behaviour in Guaranty trust bank in Nigeria. Primary data was used for the study and the data for analysis was gotten through questionnaire. The questionnaire was issued to the staff of Guarantee Trust Bank in Rivers State. The data was analyzed with the use of Chi-square in other to measure the discrepancies existing between the observed and expected frequency and to proof the level of significance in testing stated hypotheses. From the result of the study, it was discovered that organizational culture has significant influence on inter-group behaviour. Therefore, the study recommends that Guarantee Trust Bank should encourage new entrants to get internalize first with the bank’s culture to know whether they can cope with them or not. Additionally, organizations should provide adequate motivational factors like housing allowance, car loan, holiday allowance, health allowance, etc.

Ab initio solution of the many-electron Schrödinger equation with deep neural networks

Given access to accurate solutions of the many-electron Schr\"odinger equation, nearly all chemistry could be derived from first principles. Exact wavefunctions of interesting chemical systems are out of reach because they are NP-hard to compute in general, but approximations can be found using polynomially-scaling algorithms. The key challenge for many of these algorithms is the choice of wavefunction approximation, or Ansatz, which must trade off between efficiency and accuracy. Neural networks have shown impressive power as accurate practical function approximators and promise as a compact wavefunction Ansatz for spin systems, but problems in electronic structure require wavefunctions that obey Fermi-Dirac statistics. Here we introduce a novel deep learning architecture, the Fermionic Neural Network, as a powerful wavefunction Ansatz for many-electron systems. The Fermionic Neural Network is able to achieve accuracy beyond other variational quantum Monte Carlo Ans\"atze on a variety of atoms and small molecules. Using no data other than atomic positions and charges, we predict the dissociation curves of the nitrogen molecule and hydrogen chain, two challenging strongly-correlated systems, to significantly higher accuracy than the coupled cluster method, widely considered the most accurate scalable method for quantum chemistry at equilibrium geometry. This demonstrates that deep neural networks can improve the accuracy of variational quantum Monte Carlo to the point where it outperforms other ab-initio quantum chemistry methods, opening the possibility of accurate direct optimization of wavefunctions for previously intractable many-electron systems.