Owning a car can be essential for medical appointments, work, and daily life. But if you're on disability benefits, you might worry about how a vehicle affects your eligibility. The good news: you can own a car on SSI or SSDI—you just need to know the rules.
In this article, we'll cover:
- Can you own a car on disability?
- SSI rules for vehicle ownership
- SSDI rules for vehicle ownership
- Tips for buying a car on benefits
- What to do if you receive a car as a gift
1. Can You Own a Car on Disability?
Yes, people on disability benefits can own a car. However, the rules differ depending on which program you receive:
- SSI: One vehicle is typically excluded from resource limits
- SSDI: No asset limits, so vehicle ownership doesn't affect benefits
The key is understanding how your specific program treats vehicle ownership.
2. SSI Rules for Vehicle Ownership
SSI has strict resource limits ($2,000 for individuals, $3,000 for couples), but vehicles get special treatment:
One vehicle is excluded from your countable resources if:
- It's used for transportation (you or your household)
- It's the only vehicle in your household
Additional vehicles may count as resources:
- The current market value minus any loans is counted
- This can push you over the $2,000 limit
Exceptions that exclude additional vehicles:
- Modified for disability use
- Needed for employment
- Essential for medical treatment
- Used for household transportation when the first vehicle can't serve that purpose
Important: If you own multiple vehicles, talk to SSA about whether exceptions apply to your situation.
3. SSDI Rules for Vehicle Ownership
SSDI is based on work history, not assets. This means:
- No asset limits apply to SSDI
- You can own any vehicle without affecting benefits
- You can own multiple vehicles
- The value of your car doesn't matter
If you receive both SSI and SSDI (concurrent benefits), the SSI rules still apply to your total resources.
4. Tips for Buying a Car on Benefits
If you're planning to buy a car while on SSI:
Keep it simple: One vehicle is safest for staying under limits
Consider used cars: Lower purchase price means less financial stress
Watch your savings: Don't let money accumulate in your account while saving for a car
Use ABLE accounts: Save for a car in an ABLE account without affecting SSI
Time your purchase: Buy before the first of the month if your balance is high
Get the title right: Ensure the car is titled in your name only
Keep documentation: Save purchase receipts and title for SSA if asked
5. What to Do If You Receive a Car as a Gift
Receiving a car as a gift can be tricky on SSI:
Good news: A vehicle received as a gift typically replaces your excluded vehicle
Potential issue: If you now have two vehicles, one may count as a resource
What to do:
- Report the gift to SSA within 10 days
- Determine if either vehicle qualifies for additional exclusions
- Consider selling one vehicle if needed
- Spend down the sale proceeds appropriately
Important: Always report vehicle changes to SSA promptly. Failing to report can result in overpayments.
How Purple Helps
- Monitor your balance to stay under SSI limits
- Save for car expenses through ABLE account integration
- Track spending to document how you use benefits
- Get early access to your monthly payments