Tip #4: Equity Value in Additional Household Vehicles
Maintaining transportation supports your everyday independence and health care access throughout retirement. Federal SSI guidelines fully exclude one vehicle per household used for transportation, regardless of whether that primary automobile is worth $5,000 or $45,000. However, if your household owns additional automobiles, the equity value of every secondary vehicle counts directly against your SSI resource limits. Equity value represents the market value minus any outstanding auto loan balance. For example, if you own a primary vehicle and keep a secondary spare car worth $2,400 free of loans, that second car’s equity value immediately pushes a single person past the $2,000 resource cap. If an extra vehicle sits in your driveway unused, selling it for fair market value gives you liquid funds to pay off debt or purchase needed medical equipment, keeping your vehicle count compliant.
