What is a Car-Individual Development Account or IDA?
The Car-IDA program is funded by the Allstate Foundation and other corporate and private funders, and serves as a stepping stone to financial stability through the purchase of a vehicle. This program is only offered to survivors of domestic violence who have not already participated in the Classic IDA program.
What can a Car-IDA purchase as an asset?
Car-IDA participants can use IDA matched-savings for the down payment or full payment of a vehicle and associated taxes and transfer fees. IDA funds can also be used for car insurance.
How does the IDA program work?
Car-IDA participants open designated savings accounts at partner banks. Every account must be opened with a $20 deposit. KDVA offers a 1 to 1 match, for every dollar saved in an IDA, the dollar is matched with $1. A participant can save a total of $2,000 and will be matched with $2,000 to have a total of $4,000 to spend on a car purchase. All participating banks have agreed to waive fees and minimum balances requirements while the participant is an active IDA saver.
What are the requirements?
Car-IDA applicants do not have to have earned income, but must have the means to save at least $20 a month. Applicants must meet the same income and asset guidelines as for the Classic IDA. Participants must be in the program for at least 6 months and no longer than two years. During this time Car-IDA participants are making monthly $20 deposits in the IDAs and are meeting with an IDA advocate at a KDVA partner agency. All participants are required to attend financial skills building workshops to learn how to save, budget and invest wisely. Participants are also required to work on credit scores by building credit and paying off debt. Car-IDA participants must also attend a car maintenance workshop to learn how to properly maintain their purchased vehicle.
To find a partner agency near you, please click here.
What are the benefits of the Car-IDA Program?