While many websites would have you believe that the federal government supplies free money to buy a new car, this is unfortunately not true. Every year the federal government does give out millions in personal grants, but these are usually distributed through state and private foundations for very specific reasons. While some monies are allowed to be used on automobile down payments, the amount is typically not enough to purchase or finance a brand-new car.
Grants that are able to be used for the down payment of an automobile are typically found through individual organizations such as the Office of Veteran's Affairs, state assistance programs, unemployment offices and private foundations such as churches and non-profits. Applying for them must be done through the actual supplier of the grant.
In order to be awarded grant funds to put a down payment on a car you must be at least 18 years old and show a significant amount of need. For instance, individuals who need a car to get to work but do not currently have one may be eligible through their state unemployment agency while disabled veterans who need a handicap-accessible vehicle may qualify for assistance through the VA's automobile grant.
The federal government does not restrict how many grants, including personal assistance, a person may apply for. However, some programs limit how often you can apply or how often you may receive the grant. For example, the VA automobile grant may be awarded to an individual for no more than $11,000 and only once in his or her lifetime.
