Research Urges Auto Lenders to Factor Vehicle Efficiency into Loan Decisions

A recent study published by CleanTechnica argues that auto loans should incorporate vehicle fuel efficiency into underwriting criteria. The research notes that the cost of car ownership has risen nearly 50 % over the past six years, driven by escalating gasoline prices and ongoing geopolitical tensions, including the conflict with Iran. Because high‑fuel‑consumption vehicles expose lenders to greater long‑term cost risk, the authors recommend that banks adjust loan terms—such as interest rates, down‑payment requirements, or credit limits—based on a vehicle’s efficiency rating. The study suggests that doing so would align financial risk with actual operating expenses and could incentivize borrowers to opt for more economical cars.