Ways to Work: Auto Loans for Low-Income Families

It is painfully clear that purchasing and maintaining a family vehicle has become an expensive pursuit, and it can seem daunting to figure out how to afford a car loan on top of all the other financial responsibilities parents and families have.

Ways to Work is a non-profit organization that helps low-income families purchase a vehicle or pay for vehicle services and repairs. The organization is only available in certain states in the U.S. but does offer referrals in areas where it is not operational.

Many people do not know how auto loans work, and they can get in a sticky situation when it comes to the interest required on most auto loans. Ways to Work hopes to alleviate some of the stress that other, more common avenues for auto loans can create.

What is Ways to Work?

Ways to Work is a program that helps families afford auto loans or mechanical repairs. Ways to Work provides low dollar amount short-term loans with low-interest rates. The organization specifically caters to working families that find it difficult to afford car loans or repairs along with their many other financial obligations. 

While there are different types of auto loans, most traditional options charge interest rates as high as 21%. The mission of Ways to Work is to offer individuals and families more affordable loans that can ultimately save them money.

Anyone can apply for a loan with Ways to Work, though the organization does have standards when it comes to offering a loan. Eligibility guidelines in most states include the following:

• Applicant must be at least 18 years of age
• Applicant must have a valid driver’s license
• Applicant must be able to afford loan payments with insurance coverage
• Applicant must have had their current address for a minimum of six months
• Applicant must be employed and have a work history of at least six months

Ways to work primarily offers loans to families and parents, and the organization encourages people to apply even if they have no credit or a poor credit score. 

What can a Ways to Work auto loan be used for?

Ways to Work offers low-interest auto loans to people who have jobs as an effort to help them maintain their careers and move forward in their jobs. In essence, Ways to Work attempts to help adults become self-sufficient as parents and employees by making sure they have what they need to be successful.

Adults who need a car in order to get to work, get their children to school or daycare, or get to on-the-job training will likely qualify for help from Ways to Work. 

People who receive financial assistance through Ways to Work can use that money for a few different reasons, such as:

• Purchasing a used vehicle
• Paying for maintenance services on a vehicle
• Paying for vehicle repairs
• Paying for car insurance
• Paying for public transportation

While Ways to Work offers loans to the majority of individuals or families, the organization does occasionally offer lump-sum payments to some people. These amounts are generally lower in value and are used for things such as car repairs or public transportation.

How much money does Ways to Work offer?

The amount of money an individual will be offered via a loan from Ways to Work varies based on a number of factors, including:

• What the money will be used for
• The person’s ability to pay back the loan
• What the person does for work
• How much the person earns per year

The typical loan amount provided by Ways to Work is about  $4,000. The hope is that this type of loan would allow individuals to avoid pursuing financial assistance from high-interest rate options such as predatory lenders and payday companies. 

How quickly does a Ways to Work loan have to be paid back?

Ways to Work offers borrowers approximately $4,000 at a flat interest rate. Though the interest rates with Ways to Work vary, they have been as low as 4%. In most cases, a Ways to Work auto loan comes with a 24-30-month loan term. 

Depending on the size of the loan a borrower gets with Ways to Work, the monthly loan payments could be anywhere from $120-250 per month. While this may sound like a lot in terms of monthly payments, Ways to Work has traditionally saved its borrowers between $750 and $3,000 in interest fees when compared to other, more traditional financing services.

If you know you will have a limited ability to pay Ways to Work back, you should still contact the organization to see if there are other options, like a small lump-sum payment or other programs available in your area. 

How can I contact Ways to Work?

If you want to get in touch with Ways to Work, your best option is to call them at (866) 252-7171. If they operate in your state and area, a Ways to Work representative may help you contact a lender in your region who will be able to offer a low-interest loan. 

If Ways to Work is not operational where you live, the organization may have information on another non-profit organization or program that can help you and your family with your transportation needs. 

What if Ways to Work is not an option for me?

If Ways to Work does not operate in your area and you need another option for financial assistance, there are a few things you may be able to do.

First, Ways to Work still encourages you to contact the organization. The people who work for the non-profit may know other charities or organizations in your area that could provide help via financial assistance. 

You could also do your own research to see if there are programs in your area that provide financial assistance that helps with purchasing a car, paying for car services and repairs, or paying for public transportation.

It can be difficult to find an affordable car loan. This is especially true if you have no credit or a poor credit score. But, you may be able to speak with a representative from your bank or another financial institution who can give you a bit more direction when it comes to purchasing a car.

Ways to Work: What’s the bottom line?

Ways to Work may be a good option for any individuals who need help with transportation to school or work. While traditional auto loans come with high-interest rates, loans through Ways to Work are low interest and can end up saving people thousands of dollars. 

If you need financial assistance when it comes to transportation, it is a good idea to reach out to Ways to Work to see if the organization can help you. Even if you do not live in an area where Ways to Work operates, you may be able to get more information about people or programs that can help by contacting Ways to Work and letting them know about your situation.