America Saves on Car Purchases

Using grants from settlement of discrimination lawsuits against two automotive finance companies, America Saves is seeking to inform minority consumers about how to purchase a car and related financing.

Americans spend more money on motor vehicles than on any other product except housing. In the process, some consumers overspend funds that could be used for savings.

America Saves is using the grant money to expand existing Black America Saves and Hispanic America Saves programs, with a new emphasis on saving money on auto purchases.

In partnership with BET.com, Black America Saves has enrolled thousands of Savers. In partnership with Freddie Mac and Hispanic groups, Hispanic America Saves has developed bilingual materials and is developing savings programs.

The new emphasis on saving money through purchase decisions on cars and car financing will be based on messages developed over the past year related to four key questions — whether to buy, what to buy, how to buy, and how to finance. (These messages are summarized in the page two article of this newsletter.)

The messages will be disseminated through brochures, a website, and workshops as part not only of Black America Saves and Hispanic America Saves, but also many local Saves campaigns.

The lawsuits against auto finance companies alleged that the finance companies “marked up” auto loan rates to African American and Hispanic American borrowers to a greater extent than to white borrowers. In the settlements, the companies agreed to a series of reforms and to make available grant money that the court directed to America Saves and other groups.