Credit Enhancement Strategies for Higher Efficiency Vehicles in Maine

Erin Brown, Jonathan Rubin, and Bruce Wyatt published a new report entitled “Credit Enhancement Strategies for Higher Efficiency Vehicles in Maine” which reviews two credit enhancements mechanisms and their impact on access to clean, reliable vehicles.

Enhancements are necessary because lower-income and historically disadvantaged groups have less access to low-cost financing. They are not sufficient in that credit enhancements alone, while helpful, are not likely to substantially increase the purchase of clean, reliable vehicles with a higher initial purchase price, but comparable or lower long-term cost of ownership. This report looks specifically at loan loss reserves and interest rate buy-downs