Lacasa has launched a new auto loan program in partnership with Interra Credit Union, designed to help Elkhart County residents with low credit scores purchase reliable vehicles.
Ashley Bowen, Lacasa’s Vice President of Financial Empowerment, said the program is targeted toward people with credit scores under 600 — many of whom struggle to access affordable financing and often end up paying nearly 30 percent interest at buy-here, pay-here dealerships.
“So this program at this point in time it’s a flat 14% interest rate and we hope to get that down over the years, but that’s our break even point right now for the program,” Bowen said.
She explained that the lending model is based on relationships, not just risk. Instead of relying only on credit history, Lacasa looks at the circumstances that led to financial struggles, such as medical debt or student loans.
“What we’d like to do is help them to break the cycle of defaulting on loans,” Bowen said.
Each borrower is paired with a financial coach who works with them one-on-one throughout the life of the loan. Lacasa expects to issue up to 50 loans in the program’s first year, with loan amounts ranging from $6,000 to $12,000.
