How to Own a Vehicle Without Losing Your Benefits
Introduction: Can You Own a Car While on Disability?
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may be wondering:
🚗 Can I own a car while on disability benefits?
🚗 Will buying a car affect my SSI or SSDI payments?
🚗 Are there car assistance programs for people with disabilities?
The short answer:
✔ Yes, you can own a car while receiving SSI or SSDI.
✔ SSDI has no restrictions on vehicle ownership.
✔ SSI recipients can own one car, but additional vehicles may affect benefits.
In this guide, we’ll cover:
✅ How SSI and SSDI treat car ownership differently
✅ How to buy a car while receiving disability benefits
✅ Does a car count as an asset for SSI?
✅ Are there programs to help people on disability afford a car?
✅ How Purple helps track finances and disability benefits
Let’s get started!
Does Owning a Car Affect SSI or SSDI Benefits?
✔ SSDI Recipients – No Restrictions on Car Ownership
SSDI is not a needs-based program, so you can own multiple cars without affecting your benefits.
You do NOT need to report car ownership to SSA if you only receive SSDI.
💡 If you receive SSDI, you can buy or own as many vehicles as you like.
⚠️ SSI Recipients – Only One Car is Allowed
SSI has strict asset limits—you cannot have more than $2,000 in resources ($3,000 for couples).
Your primary vehicle is exempt from counting toward this limit.
If you own more than one car, SSA may count the second vehicle as an asset, which could reduce or eliminate your benefits.
💡 If you receive SSI, you can own one car without penalty, but any additional vehicles could put your benefits at risk.
How to Buy a Car While Receiving Disability Benefits
If you are on SSI or SSDI and want to buy a car, follow these steps to ensure you do not lose your benefits.
1. Make Sure the Car Qualifies as an Exempt Asset (SSI Only)
✔ The car must be used for your personal transportation.
✔ It must be titled in your name (or jointly with a spouse).
✔ The value of the car does not matter—even a new or luxury car can be exempt.
💡 If you receive SSDI, there are no asset restrictions—you can buy any car you want.
2. Use Approved Funds to Purchase the Car
✔ SSI recipients should avoid using cash savings over $2,000—this could disqualify you from benefits.
✔ Using an ABLE account or Special Needs Trust (SNT) is a safer option.
✔ SSDI recipients can use any funds to buy a car, with no restrictions.
💡 If you receive SSI, avoid receiving large financial gifts to buy a car, as this may count as income.
3. Report the Car Purchase to SSA (If on SSI)
✔ SSDI recipients do NOT need to report car ownership.
✔ SSI recipients MUST report the purchase within 10 days.
✔ Contact SSA at 1-800-772-1213 or visit SSA.gov to report the change.
💡 Failure to report a vehicle purchase could lead to overpayment issues or temporary benefit suspension.
Are There Car Assistance Programs for People on Disability?
If you need help affording a car while on SSI or SSDI, consider these programs:
1. State & Local Car Grant Programs
✔ Some states offer transportation assistance for people with disabilities.
✔ Grants may cover the cost of a vehicle, adaptive equipment, or car repairs.
💡 Find programs in your state at Benefits.gov.
2. Nonprofit Organizations That Provide Free or Discounted Cars
✔ 1-800-Charity Cars – Donates free vehicles to individuals in need.
✔ Vehicles for Change – Offers low-cost cars to low-income families.
✔ Modest Needs Foundation – Helps with car-related emergency expenses.
💡 Check nonprofit websites for eligibility and application requirements.
3. Social Services and Vocational Rehab Programs
✔ Some state vocational rehabilitation (VR) programs assist with vehicle purchases if needed for employment.
✔ Medicaid may cover transportation costs for medical appointments.
💡 Contact your state’s Medicaid or VR office for transportation assistance.
Can You Sell a Car While on SSI or SSDI?
✔ SSDI Recipients – No Impact on Benefits
If you receive SSDI, you can sell your car and keep the money without penalty.
The profit from selling your car does not count as income for SSDI.
⚠️ SSI Recipients – Be Careful!
Selling your only car is fine, but selling a second vehicle may count as a resource.
If you receive more than $2,000 ($3,000 for couples) from the sale, SSA may suspend your benefits until you spend the money down.
💡 If you receive SSI, consider putting the money into an ABLE account to stay under the asset limit.
How to Protect Your Benefits When Buying or Selling a Car
If you receive SSI, follow these steps to keep your benefits safe:
✔ Only own one vehicle—a second car may count as a resource.
✔ Avoid large financial gifts—if someone helps you buy a car, use an ABLE account or SNT.
✔ Spend sale proceeds quickly—if you sell a car, use the money before SSA reviews your assets.
✔ Report vehicle ownership changes to SSA within 10 days.
💡 If you receive SSDI, you can own, buy, or sell cars without restrictions.
How Purple Helps Track Car Expenses & Disability Benefits
💜 Track Your SSI & SSDI Payments – Know when your disability check arrives.
💜 Monitor Your Bank Balance – Ensure you stay below the SSI $2,000 resource limit.
💜 Find Transportation Assistance Programs – Get matched with car grants & assistance.
💜 Get Alerts for SSA Reporting Deadlines – Avoid benefit reductions due to unreported changes.
💡 With Purple, you can manage your finances while keeping your SSI or SSDI benefits secure!
FAQs About Car Ownership and Disability Benefits
Can I Own a Car While on SSI?
✔ Yes, you can own ONE car, and SSA will not count it as a resource.
Can I Own More Than One Car on SSI?
⚠️ No, additional vehicles count as assets and could affect eligibility.
Do I Have to Report My Car to SSA?
✔ Yes, if you are on SSI. You must report buying, selling, or receiving a car within 10 days.
❌ No, if you are on SSDI.
Can I Get Help Buying a Car While on Disability?
✔ Yes! State programs, nonprofits, and grants may help cover vehicle costs.
Conclusion: Yes, You Can Own a Car on Disability—Here’s How to Keep Your Benefits
✅ SSDI recipients can own multiple cars with no restrictions.
✅ SSI recipients can own ONE car, but extra vehicles may count as a resource.
✅ Car grants and nonprofit programs may help people with disabilities buy a car.
✅ Report any vehicle purchase or sale to SSA if you receive SSI.
✅ Use Purple to track your benefits and avoid SSI asset limits!
💜 Sign Up for Purple to Manage Your SSI, SSDI & Transportation Expenses!