In today's transportation-obsessed society, 88 percent of workers must drive or be driven in order to get to their jobs. Yet, one of the most difficult purchases for low income families to make is a car. With poor public transportation systems in most cities, car ownership is an important piece of the employment puzzle. People often opt to donate their used cars to federal and state aid organizations, rather than selling them for marginal profits. These donations serve the charity while providing the person donating the vehicle with lucrative tax deductions. Car donations help charity programs raise money and also give important transportation options to low income families and individuals. You cannot buy a donated car unless you meet specific requirements pertaining to your fiscal situation. However, there are many programs available that help low income families purchase cars for the purpose of retaining employment.
2 Get financial counseling to prepare you for car ownership. Many of the car ownership programs developed from car charity donations offer credit counseling, financial planning, budget training and referrals for service providers, car repairs and insurance when you get your donated car. If they do not, you should do this on your own. The responsibility behind owning a car does not stop at the purchase. You will need to consider the cost of gas, maintenance and repairs, which will not be covered by the charity. Financial institutions offer free financial counseling to members.
3 Make sure that you qualify. In order to be eligible to buy a donated car from a charity organization or government support system, you must first qualify. General requirements are that you are at least 18-years-old and that you have been employed by your current job for nine months or are taking at least nine credit hours at a post-secondary school. You must also be unable to qualify for a loan through a bank or other financial institution. Other qualifications may be required depending on the organization.
4 Consider other programs. If you do not qualify for some programs, you may be eligible for others. There are several different types of programs, from those that receive donated cars directly and then give them away, at no cost, to qualified recipients to companies that receive donated vehicles through a secondary source and allow recipients to purchase them at a subsidized fee. Another popular program is one that helps the recipient to purchase a low cost donated vehicle by first reducing the cost of the vehicle, setting up a program to help the family save money and then matching the savings with charity funds.
5 Set up a budget and payment program. Once you have purchased your donated vehicle, you should sit down and create a budget. In a savings account, set aside an emergency fund for unscheduled repairs. Create a monthly budget that sets aside money for gas and scheduled maintenance. If you are on a loan program through the donation charity, make sure that you set aside enough money each month to make timely payments toward the loan.
source : ehow
Instructions
1 Find a car donation charity or vehicle purchasing program in your area. There are 150 programs, located in 33 of the 50 states, but many of them are heavily concentrated in the Mid West and New England. Use the interactive map on the Donate a Car website to find out if there is a program in your state.2 Get financial counseling to prepare you for car ownership. Many of the car ownership programs developed from car charity donations offer credit counseling, financial planning, budget training and referrals for service providers, car repairs and insurance when you get your donated car. If they do not, you should do this on your own. The responsibility behind owning a car does not stop at the purchase. You will need to consider the cost of gas, maintenance and repairs, which will not be covered by the charity. Financial institutions offer free financial counseling to members.3 Make sure that you qualify. In order to be eligible to buy a donated car from a charity organization or government support system, you must first qualify. General requirements are that you are at least 18-years-old and that you have been employed by your current job for nine months or are taking at least nine credit hours at a post-secondary school. You must also be unable to qualify for a loan through a bank or other financial institution. Other qualifications may be required depending on the organization.
4 Consider other programs. If you do not qualify for some programs, you may be eligible for others. There are several different types of programs, from those that receive donated cars directly and then give them away, at no cost, to qualified recipients to companies that receive donated vehicles through a secondary source and allow recipients to purchase them at a subsidized fee. Another popular program is one that helps the recipient to purchase a low cost donated vehicle by first reducing the cost of the vehicle, setting up a program to help the family save money and then matching the savings with charity funds.
5 Set up a budget and payment program. Once you have purchased your donated vehicle, you should sit down and create a budget. In a savings account, set aside an emergency fund for unscheduled repairs. Create a monthly budget that sets aside money for gas and scheduled maintenance. If you are on a loan program through the donation charity, make sure that you set aside enough money each month to make timely payments toward the loan.
source : ehow
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