Right Choice Car Loan Program saves Des Moines families money

Cars are already expensive, and with extremely high interest rate loans they can quickly become unaffordable. CCI’s Right Choice Auto Loan Program offers Des Moines area families the opportunity to purchase a new vehicle without the high interest rates and high pressure sales tactics.

Since the program's kickoff in July 2004, 14 Des Moines area families have been saved from predatory auto loans practices and have purchased a new vehicle. These families were able to purchase a car with a fair interest rate loan, from honest sales people and learned budgeting skills for their families in the process.

Right Choice success stories:

• Before coming to CCI, Amanda was quoted a 25% interest rate for 48 months for a $14,000 auto loan by an local car dealer. The dealer justified this high interest rate because she had no established credit.
  
  After meeting for a one-to-one budget counseling session and a four-hour financial workshop at CCI, Amanda was approved for a 9% interest rate loan for 48 months. Because of the Right Choice Car Loan Program, Amanda will save $5,500 over the life of the loan.
  
  
• Antonio was quoted a 29% interest rate by a local car dealer with the stipulation that the dealer would choose the car for him. After seeing the Right Choice commercial on TV, he called CCI to see if he qualified for a lower interest rate.
  
  After meeting for a one-to-one budget counseling session and a four-hour financial workshop at CCI, Antonio was approved for a 9% interest rate loan for 48 months and was able to purchase a 2004 model car. Because of the Right Choice Car Loan Program, Antonio saved $141 a month in payments, saving $6,802 (half the price of the car) over the life of the loan.

Des Moines Citizens for Community Improvement, Commercial Federal Bank, and Crescent Chevrolet teamed up in July to kick off the Right Choice Car Loan Program to combat 'predatory lending'. The program seeks to provide people with fair interest rates and connect them with honest sales people while teaching budgeting skills. Qualifying participants must attend a one-to-one budget counseling session and a four-hour financial workshop at CCI. They must also have one year of continuous employment and be a Des Moines resident with one year at the same residence.

The minimum loan amount is $5,000 and interest rates are currently set between 9.5 and 11 percent. Eligible vehicles must have a model year of 2000 or newer, and cars can be purchased at Crescent's three Des Moines locations.

To date there has been $167,308 in loans made from Commercial Federal Bank & $176,340 in cars sold at Crescent Chevrolet.

For more information, contact Julie Chambers at 255-0800.
updated 3/25/05

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