It is not that easy for a struggling or poor family to own a car because of the low income and huge expenditure. Most of them always resort to public means of transport which is not that convenient most of the times. Efforts to help such families have in most cases just focused on healthcare, education, housing and nutrition. Little has however been done to help them afford cars, though research shows that it can be a way of alleviating their poverty. Car purchase assistance programs have therefore been developed by various organizations to help these families own vehicles.
According to the various surveys that have been carried out, the income of those people who buy vehicles with the help of nonprofit organizations tends to increase thereafter. Also, most of those receiving public assistance tend to stop receiving it after some time because they do not need it anymore. This therefore indicates that cars are advantageous in the running of day to day activities and can help in reducing poverty levels.
Surveys show that after acquiring cars, poor families are able to access good healthcare services and can also join more community activities. Their children can also get the chance to participate in various after school programs. All these are facilitated by the ease of transport that they now have.
The basic idea behind the car purchase programs is to help low income earners to get good cars to support their daily lives. These are vehicles which are either new or of late-models and have to be reliable as well as fuel efficient. The organizations therefore try to look deeply into the kinds of cars that these families get.
The programs work in a simple way. The nonprofit organization in this case will go out and make deals with commercial dealers to supply these vehicles to their members. If there is already another organization in the area providing the same services, they can as well make agreements with them on the same.
After a deal has been struck with a car dealer, the organization goes ahead to get new and late-model cars for its members. They then supply them at a very low-profit basis or no profit at all. This is because the main idea was to enable to poor family get the vehicle and not to make money out of them.
These programs are normally backed with a partnering bank. They will therefore provide the loan to the organization to help them offer these poor families with some low-cost financing. In essence, if the loan becomes default because the member who received it has not paid, then the organization will take it up on themselves because they have already agreed so with the bank.
When giving out the loan, the organization first screens the potential buyers in order to find those who can qualify for it. The down-payment can also be reduced by welfare funds if they are available. Whichever the case, the family being financed has to be given some financial education before they are given the loan. Revenue is then produced from the program to help sustain it.
Since the introduction of car purchase assistance programs, many poor families have greatly benefited. This is because they are now able to get cost effective cars that are reliable. The loans associated with the programs are also of low interest rates making them more affordable.
According to the various surveys that have been carried out, the income of those people who buy vehicles with the help of nonprofit organizations tends to increase thereafter. Also, most of those receiving public assistance tend to stop receiving it after some time because they do not need it anymore. This therefore indicates that cars are advantageous in the running of day to day activities and can help in reducing poverty levels.
Surveys show that after acquiring cars, poor families are able to access good healthcare services and can also join more community activities. Their children can also get the chance to participate in various after school programs. All these are facilitated by the ease of transport that they now have.
The basic idea behind the car purchase programs is to help low income earners to get good cars to support their daily lives. These are vehicles which are either new or of late-models and have to be reliable as well as fuel efficient. The organizations therefore try to look deeply into the kinds of cars that these families get.
The programs work in a simple way. The nonprofit organization in this case will go out and make deals with commercial dealers to supply these vehicles to their members. If there is already another organization in the area providing the same services, they can as well make agreements with them on the same.
After a deal has been struck with a car dealer, the organization goes ahead to get new and late-model cars for its members. They then supply them at a very low-profit basis or no profit at all. This is because the main idea was to enable to poor family get the vehicle and not to make money out of them.
These programs are normally backed with a partnering bank. They will therefore provide the loan to the organization to help them offer these poor families with some low-cost financing. In essence, if the loan becomes default because the member who received it has not paid, then the organization will take it up on themselves because they have already agreed so with the bank.
When giving out the loan, the organization first screens the potential buyers in order to find those who can qualify for it. The down-payment can also be reduced by welfare funds if they are available. Whichever the case, the family being financed has to be given some financial education before they are given the loan. Revenue is then produced from the program to help sustain it.
Since the introduction of car purchase assistance programs, many poor families have greatly benefited. This is because they are now able to get cost effective cars that are reliable. The loans associated with the programs are also of low interest rates making them more affordable.
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