Yes, you can own a car while receiving SSI. In fact, most vehicles are excluded from the $2,000 resource limit. Here's what you need to know.
In this article, we'll cover:
- How cars are treated for SSI
- The vehicle exclusion
- Multiple vehicles
- Buying or selling a car
1. How Cars Are Treated for SSI
General rule:
- One vehicle is usually excluded
- Regardless of value
- If used for transportation
- For you or your household
Why cars are excluded:
- Transportation is essential
- Needed for work, medical care
- Important for independence
- SSA recognizes this need
What counts as a vehicle:
- Car
- Truck
- Motorcycle
- Van (including modified)
- Other motor vehicles
2. The Vehicle Exclusion
Current rule:
- One vehicle excluded entirely
- No matter the value
- Must be used for transportation
- For you or household member
What "used for transportation" means:
- Getting to work
- Medical appointments
- Shopping
- Daily activities
- Regular use
No value limit:
- Even expensive cars excluded
- If used for transportation
- Only one vehicle though
- Second vehicle may count
Important: SSA eliminated the value limit for vehicles. One car is fully excluded regardless of what it's worth.
3. Multiple Vehicles
Second vehicle:
- May count as a resource
- At fair market value
- Could affect SSI eligibility
- Unless another exclusion applies
Possible exclusions for second vehicle:
- Necessary for employment
- Necessary for medical treatment
- Modified for disability
- Essential to self-support
Examples:
- Modified van for wheelchair: May be excluded
- Work vehicle for self-employment: May be excluded
- Collectible car not used: Probably counts
- Spouse's car: First vehicle excluded, evaluate second
If second vehicle counts:
- Value added to resources
- Could push over $2,000
- May need to sell
- Or establish another exclusion
4. Buying or Selling a Car
Buying a car:
- Using cash? Money leaves resources
- Taking a loan? You owe money, not a resource
- Using ABLE funds? Allowed expense
- Plan around resource timing
When buying helps:
- Have excess resources
- Need to spend down
- Car is excluded
- Money is counted
Example:
- Have $3,000 in bank (over limit)
- Buy a $1,500 car
- Bank account: $1,500
- Car excluded
- Now under limit
Selling a car:
- Proceeds become cash
- Cash is a countable resource
- Must manage the money
- Could push over limit
After selling:
- Spend proceeds on excluded items
- Transfer to ABLE account
- Buy another vehicle
- Pay bills
- Don't just hold cash
Car-Related Expenses
What to budget for:
- Insurance
- Gas
- Maintenance
- Registration
- Repairs
These are allowed expenses:
- Paying for car upkeep is fine
- Good way to manage resources
- Prepay insurance if needed
- Keep car running safely
Modified Vehicles
Disability modifications:
- Wheelchair lifts
- Hand controls
- Modified seating
- Often excluded even if second vehicle
Documentation:
- Keep records of modifications
- Medical necessity documentation
- Helps establish exclusion
- Important for SSA
How Purple Helps
- Track auto-related payments
- Budget for insurance and gas
- Monitor overall resources
- Keep records of spending
- Stay under SSI limits