Having reliable transportation is important for medical appointments, work, and daily life. The good news: you can own a car on disability benefits. The rules just differ between SSI and SSDI.
In this article, we'll cover:
- Car ownership rules for SSI
- Car ownership rules for SSDI
- How to buy a car without losing benefits
- What happens if you receive a car as a gift
- Tips for affording a car on benefits
1. Car Ownership Rules for SSI
SSI has a $2,000 resource limit, but vehicles get special treatment:
One vehicle is excluded:
- Your primary car doesn't count toward the $2,000 limit
- The value doesn't matter—even an expensive car is excluded
- It must be used for transportation
Additional vehicles may count:
- Second cars count as resources
- The equity (value minus loan) is counted
- Could push you over the $2,000 limit
Exceptions for additional vehicles:
- Modified for disability use
- Needed for employment
- Required for medical treatment
2. Car Ownership Rules for SSDI
SSDI doesn't have asset limits, so:
- You can own any vehicle
- You can own multiple vehicles
- The value doesn't affect your benefits
- No reporting required for vehicle purchases
Important: If you receive both SSI and SSDI (concurrent benefits), the SSI resource rules still apply.
3. How to Buy a Car Without Losing Benefits
For SSI recipients:
If it's your only vehicle:
- Buy the car without worry
- It's automatically excluded from resources
If you already own a vehicle:
- Consider selling your current car first
- Use the sale proceeds to buy the new one
- Spend down quickly to avoid having cash count as a resource
Watch your savings:
- Don't let money accumulate while saving for a car
- Consider using an ABLE account to save
- Time your purchase carefully
For SSDI recipients:
- No special considerations needed
- Buy a car however works best for you
4. What Happens If You Receive a Car as a Gift
Receiving a car as a gift can be tricky on SSI:
If you don't own a vehicle:
- The gifted car becomes your excluded vehicle
- No impact on your benefits
If you already own a vehicle:
- Now you have two vehicles
- One may count as a resource
- Consider selling one
What to do:
- Report the gift to SSA within 10 days
- Determine if any exclusions apply
- Sell one vehicle if needed to stay under limits
5. Tips for Affording a Car on Benefits
Save safely:
- Use an ABLE account to save beyond $2,000
- ABLE funds can be used for transportation
Look for assistance programs:
- Some nonprofits provide cars to people with disabilities
- Vocational rehabilitation may help with transportation
- Check local community resources
Consider your options:
- Used cars are often more practical
- Lower insurance and maintenance costs
- Reliable transportation doesn't have to be expensive
Time your purchase:
- Buy before the first of the month if your balance is high
- Don't let sale proceeds sit in your account
Finance strategically:
- A car loan can help—you only count the equity
- Monthly payments reduce your countable resource
How Purple Helps
- Track your balance to stay under $2,000
- Alerts when approaching the limit
- ABLE integration for car savings
- Clear records if SSA has questions