It is sometimes difficult for low-income families to get loans from financial institutions when they want to purchase cars. This is because most banks consider them as unworthy for credit given the little income that they earn. Such families are therefore left with no option but to resort to unreliable rides from friends or public means of transport. There have been various aids developed for poor people but most of them only touch on education, healthcare, and nutrition as well as housing issues. This is why various nonprofit organizations have developed car purchase assistance programs for poor families.
There are various national benefits that can be achieved if low-income families are helped to own cars, and you may just not realize it. For example, according to some research that has been done, it has been found that poor families which acquire cars through this means tend to have an income increase at the end of the day. Those that get public assistance may not even need it after sometime because they become financially stable.
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 car purchase programs help low-income people in buying new or late-model cars. They are also able to get reliable and fuel-efficient vehicles once they get into the program. This is normally the basic idea behind all such programs.
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.
The car dealer will then get the cars needed to the organization after they come to an agreement. The NGO will however not resell the cars at a profit. If profit is charged then it is done on the minimal end. The reason for this is because the organization is not running to make profits as all that is intended is to enable the low-income family to purchase a vehicle.
Banks are the ones that supply these organizations with the funds needed to get to the cars. They however provide it as a loan to the family but with the organization as a backup in case of defaults. The latter will therefore repay them if the loan is not paid.
Families meant to receive the assistance are first screened in order to determine their eligibility for the loan. Once that is done and they are approved, they are then educated of financial management. The revenues earned in the whole process are then used to keep the program running.
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.
There are various national benefits that can be achieved if low-income families are helped to own cars, and you may just not realize it. For example, according to some research that has been done, it has been found that poor families which acquire cars through this means tend to have an income increase at the end of the day. Those that get public assistance may not even need it after sometime because they become financially stable.
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 car purchase programs help low-income people in buying new or late-model cars. They are also able to get reliable and fuel-efficient vehicles once they get into the program. This is normally the basic idea behind all such programs.
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.
The car dealer will then get the cars needed to the organization after they come to an agreement. The NGO will however not resell the cars at a profit. If profit is charged then it is done on the minimal end. The reason for this is because the organization is not running to make profits as all that is intended is to enable the low-income family to purchase a vehicle.
Banks are the ones that supply these organizations with the funds needed to get to the cars. They however provide it as a loan to the family but with the organization as a backup in case of defaults. The latter will therefore repay them if the loan is not paid.
Families meant to receive the assistance are first screened in order to determine their eligibility for the loan. Once that is done and they are approved, they are then educated of financial management. The revenues earned in the whole process are then used to keep the program running.
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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