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.
Though they cannot be easily seen, there are various advantages achieved when poor families are enabled to own vehicles. For instance, the income of such people has been found to increase once they have vehicles to help them in their daily activities. Some of them even stop asking for public assistance after some time because their lives just got better. One of the contributing factors to that is the ability to get a job or maintain one since one is able to reach to work on time.
With a car, a low income earner is able to get involved in more community based activities because he/she can easily go to different places within a short time. Such an individual also has better access to various healthcare facilities. Children from such families have been found to be participating in more after school programs once their families own vehicles, something that helps in their development.
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.
It is always important that the families being provided with the assistance are educated on financial matters. This is therefore that an activity that the organizations carry out after they have selected the eligible families for the support program. They will normally use the small revenues they get to keep the program on its feet.
Car purchase assistance programs are of big help to low-income families. They are able to get good cars that are fuel efficient of which otherwise it would have been impossible. The loans also have low interest rates and are therefore affordable.
Though they cannot be easily seen, there are various advantages achieved when poor families are enabled to own vehicles. For instance, the income of such people has been found to increase once they have vehicles to help them in their daily activities. Some of them even stop asking for public assistance after some time because their lives just got better. One of the contributing factors to that is the ability to get a job or maintain one since one is able to reach to work on time.
With a car, a low income earner is able to get involved in more community based activities because he/she can easily go to different places within a short time. Such an individual also has better access to various healthcare facilities. Children from such families have been found to be participating in more after school programs once their families own vehicles, something that helps in their development.
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.
It is always important that the families being provided with the assistance are educated on financial matters. This is therefore that an activity that the organizations carry out after they have selected the eligible families for the support program. They will normally use the small revenues they get to keep the program on its feet.
Car purchase assistance programs are of big help to low-income families. They are able to get good cars that are fuel efficient of which otherwise it would have been impossible. The loans also have low interest rates and are therefore affordable.
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