Nonprofit Heroes: Putting Low-Income Car Buyers in the Drivers Seat

Business NH Magazine, Apr 01, 2007

When Robert Chambers sold used cars, he grew weary of seeing lowincome buyers taken advantage of by paying high interest rates for poor quality used vehicles. "Because they had credit issues, they paid higher interest rates for older cars," Chambers says, explaining that when those older cars experience problems, it pushes people into loan default and car repossession, which affects their credit ratings.

So he did something about it. In 2001, he and Leo Hamill cofounded Bonnie CLAC, a Lebanon-based nonprofit that helps low-income earners buy affordable, reliable new cars. It does so by helping clients find a vehicle that meets their needs and negotiating the costs of the car and warranty with local car dealers.

It also works with banks to secure low-interest car loans with a partial loan guarantee. Bonnie CLAC helps clients set goals and provides financial education to help them better manage their finances. "The mission is to help people make better decisions when buying cars, to save money by making better, informed decisions," Chambers says. "I want the people we work with to get a better car for the money they're spending."

Since being established, Bonnie CLAC has helped 884 people buy cars and facilitated more than $13 million in loans to its clients. The program has also expanded to Concord, Exeter, Keene, Manchester, and Portsmouth. "Our clients are not only paying back these loans, their credit is improving and many are going on to better jobs and buying homes," Chambers says.

The innovative program has captured national attention. Chambers was one of 15 people nationally named a 2006 winner of The Purpose Prize, an award given by Civic Ventures to people over the age of 60 who "are defying societal expectations by channeling their creativity and talent to address critical social problems at the local, regional, or national level."

The award led to Bonnie CLAC receiving a $100,000 grant to create a strategic business plan to expand into Vermont, Maine and Massachusetts and eventually nationally The organization has 13 employees, but anticipates growing its staff to help open eight, new offices in New England. Bonnie CLAC is also reaching out to businesses to help it connect with employees who have transportation issues. "We see people all the time about to lose their job because they can't get to work," Chambers says.

Chambers notes Bonnie CLAC is closer to becoming selfsufficient. Clients pay an $800 fee to Bonnie CLAC that is rolled into their financing. The organization also receives funding through grants and donations. "We want to build up core support to become more efficient and help more clients," Chambers says. "As they're getting started, it's crucial that nonprofits think of creating sustainability."