How to Own Two Cars on SSI

Robin Mead

If you are on SSI, owning one car will not count. Owning two cars can cause problems. For married couples, the same rules apply! Only one car per couple.

This is particularly an issue for low-income families with disabled children where both parents need to work and bring their children to medical appointments and disability programs. Luckily, there are a few rules that will allow a family to own two cars.

How The SSI Car Rules Work

🌷 One car is excluded as a resource, but the additional cars count as resources. If you’d like to see the detailed (and confusing) regs, here’s where you can find the SSI car policies.

🌷 In some cases, a second car can put you over the resource limit. This can cause your SSI check to stop until you are back under the limit. Here’s how you can tell if you are over or under The SSI Resource Limit

🌷 This is for SSI only. If you are on SSDI, you can own a million cars.

Twelve Ways To Own Two Cars

Below are twelve ways it might be possible to own two cars and still qualify for SSI:

🌷 One car is cheap. Social Security will exclude the more expensive car. It doesn’t matter which car you bought first. The more expensive one is always the excluded one. If the cheaper car is really cheap, you may be able to keep it and still stay under the limit.

🌷 One car has a loan payment. Social Security won’t count the full value of the car. Just the “principal equity value”. If there is any kind of loan or debt on your car, your equity value may be little or nothing at the moment. The loan must be directly attached to the car (if someone just loaned you money to buy a car without the car itself being encumbered in debt, this wouldn’t count). Warning: As you pay off the loan, the car may start to gain equity value. Keep and eye on it.

🌷 One car is incorrectly assessed. Social Security has their own system for valuing your car. It is not always accurate. If your car is in poor condition, it may be worth less. If you think your car is being over-valued and this is disqualifying you there is a solution: You can get your own appraisal of the car and submit a written copy to your SSI worker.  For example, you can get a written appraisal from a used car dealer or an automobile insurance company.

🌷 Your child turns 18. If you are not on SSI, but your child is on SSI, then once your child turns 18, it no longer matters how many cars you have. Or how much money you have. Even if your child is living with you, your finances do not count at all

🌷 You rent or borrow a car. Rented and borrowed cars do not count as resources for SSI.

🌷 The car is used for a trade or business. It may be excluded under the “Property Essential to Self Support” Regulations. This is most commonly used by small business owners and self-employed people, however, it might be possible in other situations if the vehicle is required by the employer as part of the work (not just for commuting).

🌷 The car belongs to someone else who lives in the house. This may or may not count. It depends who owns the car and (very important!) who has their name on the car title. “I Live With Family or Other People. Do Their Resources Affect My SSI?”

🌷 The car belongs to someone who does not live with you. Finances of someone who does not live in the house will not affect SSI. For example, an absent parent or absent spouse will not count. On the other hand, a parent or spouse who lives in the home might count. This is called “deeming.” How to Avoid Deeming

🌷 Double check your resource limit. If you have disabled children living in your home, the resource limit gets very complicated. Many people mistakenly think their resource limit is lower than it is! For example, a married couple with two children on SSI can have $7,000 in countable resources. What is The SSI Resource Limit?

🌷 The Car is Co-Owned. If you co-own a car, Social Security will only count your share of the car as a resource. For example: Susie owns a car with her sister. They are both listed on the title. The car is worth $2000. Susie’s share is worth $1000. Policy on shared ownership.

🌷 Your resource limit changes – This can happen if a spouse moves in or out, parent moves in or out, or more children qualify for SSI.

🌷 Your spouse moves out – If both spouses own cars and one moves out, second car will stop counting.

🌷 A parent moves out – If child is on SSI, and both parents own cars, and one moves out, second car will stop counting (only for children under 18. If child is over 18, then a parents’ cars will never count)

Having Problems?

🌷 SSI uses the “NADA Trade in Value” to determine the value of your car. If you disagree with how they valued your car, you have the right to abut their valuation. The easiest way to do this is to get your car appraised and bring a copy of the written appraisal to SSA. Here’s the policy: SSI car regulations.

🌷 If you are sent an overpayment notice, you have the right to file an appeal and/or request a waiver: How To Handle a Social Security Overpayment Notice

🌷 If you think Social Security did not make any mistakes, and you really are over the resource limit, take a look here: How to Handle If You Are Over the SSI Resource Limit.

🌷 Do not give a car away or take your name off a car or sell your car for less than it is worth. This is called “transfer of resources” and will only cause more problems.

FEELING CONFUSED?

🌷 If you are feeling confused or you are being told conflicting information, there’s a very good chance this is happening because someone is mixing up the resource rules with the income rules. Totally different rules! How to Tell the Difference Between the Income and Resource Rules

🌷 It’s also possible someone is mixing up the SSI rules with the SSDI rules. Also totally different rules! How to Tell the Difference Between SSI and SSDI

Thanks for Reading

🌷 This page is part of the free online guide: How to Stay Out of Hot Water with SSI

🌷 Art on this page by Robin Mead and Elizabeth D’Angelo.

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