Owning a car is possible while on disability benefits—and often essential. Here's how to buy a vehicle without jeopardizing your SSI or SSDI.
In this article, we'll cover:
- Vehicle rules for SSI vs SSDI
- Buying a car on SSI
- Car-buying assistance programs
- Financing and insurance
1. Vehicle Rules for SSI vs SSDI
SSDI rules:
- No asset limits
- Own any car you want
- No value restrictions
- No SSA concerns
SSI rules:
- One vehicle excluded
- Regardless of value
- Must be for transportation
- Second vehicle counts
The one-vehicle exclusion:
- Your primary vehicle excluded
- No value limit anymore
- Used for transportation of household
- Doesn't count toward $2,000
Multiple vehicles:
- Second vehicle counts as resource
- Fair market value matters
- Could push over limit
- Plan carefully
Important: On SSDI, you have no asset restrictions. On SSI, you can own one vehicle of any value without affecting benefits.
2. Buying a Car on SSI
Using benefits for purchase:
- Can save in ABLE account
- Pay from regular income
- Gift from family
- Trade in old vehicle
Timing considerations:
- Large deposits require explanation
- Save in ABLE account
- Document gift money
- Keep receipts
What to report:
- Change in assets
- New vehicle ownership
- Source of funds
- Within 10 days
Protecting benefits:
- Keep only one vehicle
- If buying new, sell old
- Don't hold proceeds too long
- Use ABLE for savings
3. Car-Buying Assistance Programs
Nonprofit programs:
- Working Cars
- 1-800-Charity Cars
- Good News Garage
- Local charity programs
Government programs:
- Vocational rehabilitation
- TANF vehicle programs
- State-specific programs
- Community action agencies
Veteran programs:
- DAV transportation
- VA vehicle grants (service-connected)
- Veteran-specific charities
- State veteran services
Requirements vary:
- Income limits
- Employment connection
- Disability documentation
- Waiting lists common
4. Financing and Insurance
Financing options:
- Credit unions often most flexible
- Some programs for disability recipients
- Avoid predatory lenders
- Consider used certified
Building credit:
- Start with secured card
- Pay on time consistently
- Keep balances low
- Check credit report
Insurance considerations:
- Shop around
- Ask about disability discounts
- Consider usage-based
- Maintain continuous coverage
Adaptive equipment:
- May be covered by Medicaid
- VR can help fund
- Increases vehicle cost
- Essential for some
Practical Buying Tips
Budget realistically:
- Purchase price
- Insurance costs
- Maintenance
- Gas/charging
- Registration/taxes
Used vs new:
- Used often better value
- Certified pre-owned option
- New has warranty
- Consider total cost
What to avoid:
- Buy-here-pay-here lots
- Extremely high interest
- Pressure sales tactics
- Buying more than needed
Documentation:
- Keep purchase records
- Save all receipts
- Document any gifts
- Report to SSA as needed
How Purple Helps
Purple supports your car ownership goals:
- Track savings for purchase
- Monitor spending
- Stay under SSI limits
- Clear financial records
- Easy documentation