If you receive SSI and need reliable transportation, you might be wondering whether buying a car is even possible without losing your benefits. The good news is that owning a vehicle is allowed under SSI rules, but there are important details to understand.
In this article, we'll cover:
- Whether you can own a car while receiving SSI
- How the SSA counts vehicles as resources
- What happens if you have more than one car
- Tips for buying a car without risking your benefits
1. Yes, You Can Own a Car on SSI
The Social Security Administration (SSA) allows SSI recipients to own a vehicle. In fact, one automobile is completely excluded from the $2,000 resource limit, regardless of its value.
This means you can own a car worth $5,000, $15,000, or even more without it counting against your SSI eligibility. The SSA recognizes that transportation is essential for medical appointments, work, and daily living.
2. How the SSA Counts Vehicles
Here's how vehicles are treated under SSI resource rules:
- One vehicle is excluded from the resource limit entirely
- The exclusion applies regardless of the car's value
- The vehicle must be used for transportation (it doesn't have to be used daily)
- The exclusion applies to cars, trucks, motorcycles, and other vehicles
This exclusion exists because the SSA understands that having transportation can help you work, attend medical appointments, and maintain independence.
3. What If You Have More Than One Vehicle?
If you own more than one vehicle, only one gets the full exclusion. Any additional vehicles count toward your $2,000 resource limit based on their current market value.
For example:
- You own a car worth $8,000 (excluded) and a second car worth $3,000
- The second car's $3,000 value counts as a resource
- This alone would put you over the $2,000 limit
Important: If you have a second vehicle, consider whether it's necessary. Selling it or transferring ownership might be the safest option for protecting your benefits.
4. Tips for Buying a Car Safely
When purchasing a vehicle on SSI, keep these strategies in mind:
- Save gradually and keep your total resources under $2,000 until you're ready to buy
- Buy the car quickly once you've saved enough, so you don't sit above the limit at the end of a month
- Keep documentation of the purchase, including the bill of sale and title
- Report the purchase to the SSA if they ask about your resources
- Consider financing if you can't save the full amount without exceeding resource limits
The SSA counts your resources on the first of each month. If you receive money and spend it on a car before the first of the following month, you may avoid going over the limit.
5. Financing vs. Paying Cash
Both options can work, but each has considerations:
Paying cash:
- You need to save without exceeding $2,000 in countable resources
- Once you buy the car, the money is gone and the car is excluded
Financing:
- Monthly payments may be easier to manage
- The loan balance doesn't count as a resource
- Make sure the monthly payment fits your budget
Important: Be cautious with financing terms. High interest rates can make a car much more expensive over time. Look for low-interest options or consider buying a reliable used car outright.
6. What About Insurance and Maintenance?
Owning a car comes with ongoing costs:
- Insurance premiums
- Gas and maintenance
- Registration and taxes
- Repairs
Make sure these expenses fit within your monthly budget. An unexpected repair bill could strain your finances if you're not prepared.
7. How Purple Helps You Buy a Car on SSI
Managing your money carefully is essential when you're working toward a big purchase like a car. Purple makes it easier to:
- Track your resources so you always know where you stand against the $2,000 limit
- Set savings goals for your car purchase
- Monitor your spending to ensure you stay within budget
- Keep records of transactions for SSA reporting if needed
With Purple's visual tools and real-time tracking, you can save confidently without accidentally putting your benefits at risk.