Working Wheels

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WORKING WHEELS EVALUATION Low Income Car
Ownership Meeting December 5, 2005 Susan Crane,
Port Jobs, Seattle, Washington www.portjobs.org
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One applicants story

• I am a single mom with two boys, one is 5 and
  the other is 14. Im attending
  pre-apprenticeship training full-time during the
  day, and work part-time as a waitress at night.
  I do not have a car and this makes everyday
  extremely difficult for myself and my children.
  The daycare that my youngest son is in charges 5
  every minute you are late. The bus was late one
  day by 15 minutes, and I had to pay 75 extra.
  Also, I want to apply for the Ironworkers
  apprenticeship but one of the job requirements
  is that I have reliable transportation, because I
  will be working on jobsites all around King
  County. Time is running out for me.
• -Beth, a Working Wheels applicant

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The Working Wheels Program

• Working Wheels opened in 2002 and has sold more
  than 225 cars to low income individuals and
  families.
• The cars reconditioned used cars, with low
  miles and regular maintenance, mostly donated
  from public fleets. A typical car has an average
  sales price of 1,730, an average market retail
  value of 3,300, and has 51,000 miles.
• The loans low interest auto loans and banking
  services from a local bank (7 interest rate,
  3-year terms, no prepayment penalties or
  origination fees).
• The support and training services additional
  services include financial education, credit
  repair, insurance assistance, and employment
  assistance.

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The Working Wheels Car Lot
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Who are the partners?
Fremont Public Association Operates Working
Wheels. FPAs certified auto mechanics
recondition cars before sale. Provides financial
education classes and credit repair services to
applicants.
Port Jobs Created Working Wheels. Provides
technical assistance, fundraising help, and
website / database development. Starting program
evaluation
City of Seattle Donates 50 fleet vehicles per
year.
King County Donates up to 50 fleet vehicles per
year and provides financial support.
Sound Community Bank Provides low-interest auto
loans and banking services to clients.
Port of Seattle Donates up to 10 vehicles per
year and provides free car storage space.
Pacific Associates Provides financial mentoring
and employment services to car owners.
Federal Home Loan Bank of Seattle Provides loan
guarantees for Working Wheels loans.
Referral agencies Social service agencies refer
participants to the program. Self-referred
individuals may apply on their own too.
Funders WA StateWorkFirst, Seattle Foundation,
Allen Foundation have provided financial support.
Wells Fargo Bank Brokered relationships with
financial institutions during start-up.
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The Working Wheels Evaluation

• Client Outcomes A comprehensive evaluation
  articulating how owning a car affects
  participants lives and employment situations.
  Explores three primary questions
• How does owning a car affect an individuals
  employment situation. Is she working more hours
  and earning more money?
• How does a car owners family benefit from the
  car?
• Does access to a low-interest bank loan affect a
  car owners credit standing and his use of bank
  services?
• Methodology
• Qualitative telephone interviews with 51 WW car
  owners
• Quantitative employment/earnings data from WA
  State ESD for all car owners, with comparison
  group analysis
• Demographic and loan data on all car owners

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Evaluation Key Findings
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Improved Employment Opportunities

• Improved employment opportunities (see slide on
  next page)
• Increase hours worked an average 32 increase
  in weekly hours
• Increase flexibility in jobs and shifts
• Increased education and training opportunities
• Increased earnings
• 81 of car owners experienced wage gains over the
  15 month period.
• Median hourly wage increased from 11.25 one
  quarter before car purchase to 12.34 three
  quarters after, an increase of 10.
• Median wage gain was 10 higher than the
  comparison group
• Decreased dependence on public assistance
• 60 decrease in car owners who receive TANF cash
  assistance
• Majority of those who left TANF cite an increase
  in income as the reason.
• Source Washington State Employment Security
  Department employment records

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Benefits to the family

• Its easier to get kids where they need to be
  Nine out of ten parent respondents report
  transporting their children to daycare, school,
  extracurricular activities, and doctors
  appointments is easier now that they have cars.
• Children can participate in new activities 83
  of parent respondents report that their children
  can participate in new activities, such as
  joining the school debate team, taking Tae Kwan
  Do classes, and going to the park.
• Families are spending more time together 76 of
  parent respondents report having a car has
  increased the time or improved the quality of
  time they spend with their children.
• Source Interviews with 51 Working Wheels car
  owners

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Access to Credit and Financial Services

• Low default rates Only 2.5 of WW car owners
  have defaulted on their loans.
• Car owners are saving money! 53 of respondents
  report being able to save more money since owning
  their cars. 39 of respondents report opening a
  savings account for the first time since owning
  their cars.
• Decreased use of high-cost financial services
  Respondents report an increase in their use of
  checking and savings accounts, and a decrease in
  their use of predatory services such as Payday
  loans.
• Source Aggregate loan information from Sound
  Community Bank interviews with 51 Working Wheels
  car owners

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A moms story

• The car has helped so much with my kids. We are
  on medical coupons, so the kids are restricted to
  the one dentist who takes coupons in our area.
  It takes 3 buses to get there, and this is
  impossible to manage during my working day. And
  of course that dentist doesnt offer night
  appointments. The kids hadnt been able to go to
  the dentist in about two years. Now that I have
  a WW car, I can take them.

• Sally, a WW car owner, April 2005.

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Summary of findings

• WW car owners are earning more money and
  improving their employment situations.
• WW car owners are experiencing benefits that
  affect their entire families, from taking
  children to daycare to shopping at discount
  stores.
• WW car owners are saving money, increasing their
  use of traditional banking services, and
  decreasing their use of predatory lenders.

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In her own words

• I cant begin to tell you how much this program
  has saved my life. Without this car, I wouldnt
  have a job. My supervisor told me I had two
  months to find reliable transportation, or he
  would let me go. Thank goodness I found Working
  Wheels. Even today, I am really just two
  paychecks away from living on the street. Having
  a reliable car is essential to keeping my job and
  keeping my life together. This car has been the
  greatest one-time gift of my life.

• Margaret, a WW car owner, April 2005.

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Working Wheels opens doors

• Because of my WW car loan experience, I decided
  to apply for a home improvement loan and good
  gracious I was approved! Ive owned my home on
  Beacon Hill for 30 years, but havent been able
  to afford necessary home improvements. My old
  knees have seen better days, and I can hardly
  manage to climb the stairs to my bedroom every
  night. With my new home improvement loan, Im
  going to have a bedroom put in downstairs, so I
  dont have to experience pain everyday. I am so
  grateful that I have this opportunity.
• - Betsy Jones, a 65
  year old WW car owner