Having a car can be essential for independence, medical appointments, and work. Here's everything you need to know about buying and owning a car while on disability benefits.
In this article, we'll cover:
- SSI car ownership rules
- SSDI car ownership rules
- How to afford a car on disability
- Programs that help with vehicles
- Tips for buying smart
1. SSI Car Ownership Rules
SSI allows you to own a car without it affecting your benefits:
One vehicle is excluded:
- Your primary vehicle is not counted as a resource
- Value doesn't matter—even an expensive car
- Must be used for transportation
Additional vehicles:
- Second cars count toward $2,000 limit
- Equity (value minus loan) is counted
- Could put you over resource limit
Exceptions for extra vehicles:
- Modified for disability
- Needed for work
- Required for medical treatment
Important: If you sell your car, the cash counts as a resource. Spend it quickly on a replacement or other needs.
2. SSDI Car Ownership Rules
SSDI has no asset limits:
- Own as many vehicles as you want
- Any value is fine
- No effect on benefits
- No reporting required
If you receive both SSI and SSDI, the SSI rules apply to your total resources.
3. How to Afford a Car on Disability
Saving for a car:
- Use an ABLE account to save beyond $2,000
- ABLE funds can be used for transportation
- Plan your purchase timing
Financing:
- Car loans reduce countable equity
- Monthly payments are more manageable
- Some credit unions specialize in disability lending
Used vs. new:
- Used cars are more affordable
- Lower insurance costs
- Reliable doesn't mean expensive
Total cost of ownership:
- Insurance
- Gas
- Maintenance
- Registration
- Plan for all costs, not just purchase price
4. Programs That Help with Vehicles
Vocational rehabilitation:
- May help with transportation for work
- Vehicle modifications
- Driver training
Nonprofit organizations:
- Some provide free or low-cost vehicles
- 1-800-Charity Cars
- Working Cars for Working Families
- Local organizations
VA programs (for veterans):
- Grants for vehicle modifications
- May cover full vehicle cost in some cases
State programs:
- Some states have vehicle assistance
- Check with your local disability services
Medicaid transportation:
- Free rides to medical appointments
- Not a car, but reduces need for one
5. Tips for Buying Smart
Before you buy:
- Determine your actual needs
- Get pre-approved if financing
- Check your ABLE account balance
- Have the car inspected
When buying on SSI:
- Buy before the first of the month if cash is high
- Don't let sale money sit in your account
- Title the car in your name only
Choosing the right car:
- Prioritize reliability
- Consider fuel efficiency
- Think about maintenance costs
- Check insurance rates before buying
Financing smartly:
- Credit unions often offer better rates
- Avoid "buy here, pay here" dealers
- Understand the total cost with interest
- Don't overextend your budget
After purchase:
- Report to SSA if you now have two vehicles
- Keep documentation of purchase
- Maintain the car to protect your investment
How Purple Helps
- ABLE integration for saving
- Balance tracking for SSI limits
- See your finances clearly
- Plan major purchases