WORKING WHEELS EVALUATION
Low Income Car Ownership Meeting
December 5, 2005
Susan Crane, Port Jobs, Seattle, Washington
www.portjobs.org
One applicant’s story…
“I
2
am a single mom with two boys, one is 5 and the
other is 14. I’m 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 Ironworker’s
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
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
3
services include financial education, credit repair, insurance
assistance, and employment assistance.
4
The Working
Wheels Car Lot
Who are the partners?
Fremont Public Association
Port Jobs
Created Working Wheels. Provides
technical assistance, fundraising help,
and website / database development.
Starting program evaluation
Operates Working Wheels. FPA’s
certified auto mechanics recondition
cars before sale. Provides financial
education classes and credit repair
services to applicants.
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
Referral agencies
Social service agencies refer
participants to the program.
Self-referred individuals may
apply on their own too.
Provides loan guarantees for
Working Wheels loans.
Funders
WA StateWorkFirst, Seattle
Foundation, Allen Foundation
Brokered relationships with financial
have provided financial support.
institutions during start-up.
Wells Fargo Bank
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 individual’s employment situation. Is
she working more hours and earning more money?
 How does a car owner’s family benefit from the car?
 Does access to a low-interest bank loan affect a car owner’s credit
standing and his use of bank services?
Methodology:
6
 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
Evaluation Key
Findings
7
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
8
Impact of WW Car on Employment Outcomes
"Do you feel that owning a WW car has helped create a change in…"
100%
Percentage of Respondents
20%
25%
25%
23%
22%
18%
75%
50%
98%
80%
75%
75%
77%
78%
100%
82%
No
25%
Yes
0%
9
Increased
Increased
Change in
Increase in
Increased
More
Easier
Increased job
Income
Hours
shifts able
range of jobs
ability to
stable
commute
opportunities
to work
able to
participate in
work
trainings
employment
* Source: Survey responses from 51 interviewed WW car owners
Benefits to the family
It’s 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
doctor’s 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.
10
*Source: Interviews with 51 Working Wheels car owners
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
11
A mom’s 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
doesn’t offer night appointments. The kids hadn’t
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.
12
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.
14
In her own words…
“I can’t begin to tell you how much this program has
saved my life. Without this car, I wouldn’t 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.
15
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! I’ve owned my home on
Beacon Hill for 30 years, but haven’t 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, I’m going to have a
bedroom put in downstairs, so I don’t have to
experience pain everyday. I am so grateful that I have
this opportunity.”
16
- Betsy Jones, a 65 year old WW car owner