TN 55 (09-06)

SI 01130.200 Automobiles and Other Vehicles Used For Transportation

Citations:

Regulations 20 CFR 416.1218

The Digital Library has a link to the National Auto Dealers Association (NADA) e-Valuator for verification of the value of cars (SSI resources) http://digitallibrary.ssahost.ba.ssa.gov/.

A. Background

Based on a change in the regulations effective March 9, 2005, the resource exclusion for automobiles was changed. For resource determinations beginning April 2005, one automobile per household is completely excluded regardless of value if it is used for transportation by the individual/couple or a member of the individual's/couple's household.

B. Definitions

1. Automobile

For Supplemental Security Income (SSI) purposes, “automobile” means any registered or unregistered vehicle used for transportation. Vehicles used for transportation include but are not limited to cars, trucks, motorcycles, boats, snowmobiles, animal-drawn vehicles, and even animals.

A temporarily broken down vehicle normally used for transportation meets the definition of an automobile (see SI 01130.200E.3.).

2. Current Market Value (CMV)

The CMV of an automobile is the average price an automobile of that particular year, make, model and condition will sell for on the open market (to a private individual) in the particular geographic area involved.

3. Equity Value (EV)

The EV of an automobile is the price it can reasonably be expected to sell for on the open market (to a private individual) in the particular geographic area involved, minus any encumbrances. (See SI 01110.400A.1.c. for the definition of an encumbrance and SI 01140.042 to determine equity value.)

C. Policy – beginning April 2005

1. Exclusion of one automobile regardless of value

One automobile per household is excluded regardless of the value if it is used for transportation of the eligible individual/couple or a member of the eligible individual's/couple's household.

ASSUMPTION: Assume the automobile is used for transportation, absent evidence to the contrary.

2. How to apply the exclusion when an individual and/or deemor owns more than one automobile

When an individual and/or deemor own more than one automobile, apply the exclusion as follows:

  1. Apply the exclusion in the manner most advantageous to the individual.

  2. Apply the total exclusion to the automobile with the greatest equity value if the eligible individual/couple and/or deemors own more than one automobile used for transportation of the eligible individual/couple or a member of the eligible individual's/couple's household.

  3. The equity value of any automobile, other than the one wholly excluded per SI 01130.200C.1., is a resource when it:

    • Is owned by an eligible individual/couple and/or deemors; and

    • Cannot be excluded under another provision (e.g., property essential to self-support, plan to achieve self-support) or conditional benefits do not apply.

3. Vehicles that do not meet the definition of an automobile

The following vehicles do not meet the definition of an automobile:

  • A vehicle that has been junked; and

  • A vehicle that is used only as a recreational vehicle (e.g., a boat used on weekends for pleasure).

The equity value of such a vehicle is a resource.

NOTE: The personal effects exclusion does not apply to such vehicles (see SI 01130.430).

D. Policy – before April 2005

1. Exclusion regardless of value

One automobile is excluded regardless of value if for the individual or a member of the individual's household it is:

  • necessary for employment;

  • necessary for the treatment of a specific or regular medical problem;

  • modified for operation by, or the transportation of, a handicapped person; or

  • necessary, because of climate, terrain, distance or similar factors, for the performance of essential daily activities.

2. Alternate exclusion - up to $4,500 of CMV

One automobile maybe excluded based on its CMV rather than its use.

  • If no, automobile is excluded per SI 01130.200D.1., up to $4,500 of the CMV of one automobile is excluded.

  • If the CMV exceeds $4,500, the excess counts as a resource unless the automobile can be excluded under some other provision (e.g., property essential to self-support or a plan to achieve self-support, or conditional benefits).

NOTE: Equity value is not a consideration for purposes of this exclusion.

3. Other automobiles

Any automobile an individual/couple owns is a resource in the amount of its equity value if:

  • It is owned in addition to the one wholly or partly excluded per SI 01130.200D.1. or SI 01130.200D.2.; and

  • It cannot be excluded under another provision (e.g., property essential to self-support, a plan to achieve self-support) or conditional benefits are not applicable.

4. Application of the exclusion

The exclusion applies in the manner most advantageous to the individual.

5. Examples

a. One of two cars is totally excluded

If one of two cars can be excluded as necessary for medical treatment, and the other will be a countable resource, the exclusion applies to the car with the greatest equity value regardless of which car is used to obtain medical treatment.

b. Neither car is totally excluded, one is excluded up to $4,500 of CMV

The individual owns two cars. One has a CMV of $8,000 and an equity value of $500. The other, which has been paid off, has a CMV and equity value of $2,500. Neither can be excluded based on use. Applying the $4,500 exclusion to the car with the $8,000 CMV would leave $3,500 of the CMV of that car as a countable resource. It also would leave the $2,500 equity value of the other car as a countable resource.

Applying the $4,500 exclusion to the car with the $2,500 CMV excludes that car entirely, leaving only the $500 equity value of the other car to be included in countable resources. Therefore, the exclusion applies to the car with the $2,500 CMV.

6. Vehicles that do not meet the definition of an automobile

The following vehicles do not meet the definition of an automobile:

  • A vehicle that has been junked; and

  • A vehicle that is used only as a recreational vehicle (e.g., a boat used on weekends for pleasure).

The equity value of such a vehicle is a resource.

NOTE: The personal effects exclusion (see SI 01130.430) does not apply to such vehicles.

E. Procedure - initial claims for months beginning April 2005

April 2005 is the first month for which the resource determination is affected by the policy change, because resources are determined as of the first moment of the month.

NOTE: The March 2005 resource determination is based on the prior rules as described in SI 01130.200D.

1. MSSICS claim

a. Individual owns one automobile that is used for transportation

Exclude the total value of the automobile. Complete the Vehicle (RVEH) page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

b. Individual owns one automobile that is not used for transportation

Charge the equity value of the automobile as a resource unless it is excluded under the provisions for property essential to self-support or plan to achieve self-support, or unless conditional benefits apply. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile (see SI 01130.200E.3.).

c. Individual owns two or more automobiles

When an individual owns two or more automobiles, apply the following rules:

  • If only one automobile is used for transportation, totally exclude the value of that automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

  • If more than one automobile is used for transportation, totally exclude the automobile with the greatest equity value. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

  • For any automobile that cannot be excluded for transportation reasons, consider excluding it under the provisions for property essential to self-support or plan to achieve self-support, or consider if conditional benefits apply.

  • If the automobile does not qualify for exclusion, count the equity value of the automobile(s) as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

2. Non-MSSICS claims

a. Individual owns one automobile that is used for transportation

Exclude the total value of the automobile. Complete the paper application as follows:

  • SSA-8000-BK Completion

Question 40(a) – Answer “yes.”

Question 40(b)

  • Fill in the owner's name and description of the automobile. Insert “TRANSPORTATION” in the “USED FOR” block.

  • Cross through the blocks entitled “CURRENT MARKET VALUE” and “AMOUNT OWED.”

  • SSA-8010-BK Completion

Question 7(a) – Answer “yes.”

Question 7(b)

  • Fill in the owner's name and description of the automobile.

  • Insert “TRANSPORTATION” in the “USED FOR” block.

  • Cross through blocks entitled “EQUIPPED FOR HANDICAPPED,” “CURRENT MARKET VALUE,” and “AMOUNT OWED.”

  • SSA-8001-BK Completion

Question 26(a)

  • Cross through the block entitled “Dollar Value You Own” and “Dollar Value Spouse or Parents Own.”

  • Complete the rest of the question.

b. Individual owns one automobile that is not used for transportation

Charge the equity value of the automobile as a resource unless it is excluded under the provisions for property essential to self-support or plan to achieve self-support, or unless conditional benefits apply.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile (see SI 01130.200E.3.).

Complete the paper forms as follows:

  • SSA-8000-BK Completion

Question 40(a) – Answer “yes.”

Question 40(b)

  • Fill in the owner's name and description of the automobile.

  • Insert “OTHER” in the block entitled “USED FOR.”

  • Complete the blocks for “CURRENT MARKET VALUE” and “AMOUNT OWED” and determine the equity value of the automobile.

  • SSA-8010-BK Completion

Question 7(a) – Answer “yes.”

Question 7(b)

  • Fill in the owner's name and description of the automobile.

  • Insert “OTHER” in the block “USED FOR” and cross through “EQUIPPED FOR HANDICAPPED.”

  • Complete the blocks for “CURRENT MARKET VALUE” and “AMOUNT OWED” and determine the equity value of the automobile.

  • SSA 8001-BK Completion – Complete Question 26(a) in its entirety.

c. Individual owns two or more automobiles

When an individual owns two or more automobiles, apply the following rules:

  • If only one automobile is used for transportation, totally exclude the value of that automobile. Follow the form completion instructions in SI 01130.200E.2.a. for the excluded automobile.

  • If more than one automobile is used for transportation, totally exclude the automobile with the greatest equity value. Follow the form completion instructions in SI 01130.200E.2.a. for the excluded automobile.

  • For any automobile that cannot be excluded for transportation reasons, consider excluding it under the provisions for property essential to self-support, plan to achieve self-support, or consider if conditional benefits apply.

  • If the automobile does not qualify for the exclusion, count the equity value of the automobile(s) as a resource. Follow the form completion instructions in SI 01130.200E.2.b. for any non-excluded automobile.

3. Automobile is temporarily inoperable

If an individual, who owns an automobile that is temporarily inoperable (e.g., needs repairs), alleges:

a. The automobile will be used for transportation

  • Within 12 calendar months after the month of adjudication, exclude the total value of the automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

    EXAMPLE: The month of adjudication is January, and the individual alleges the automobile will be in use for transportation by the following January. Exclude the total value of the automobile.

    NOTE: It is not necessary to recontact the individual to determine if the automobile became operable within the 12-month period. Assume the automobile did become operable.

  • More than 12 calendar months after the month of adjudication, count the equity value of the automobile as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

b. The automobile will not be used for transportation

Charge the equity value of the automobile as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

F. Procedure – posteligibility for months beginning April 2005

For months beginning April 2005:

  • Apply the automobile exclusion the same as for initial claims, as stated in SI 01130.200E.

  • Do not redevelop the exclusion of an automobile that has already been determined to be totally excluded based on usage unless you become aware of a change relating to the automobile exclusion (e.g., the individual uses a different automobile for transportation, the individual purchases or disposes of an automobile, etc.).

  • For the period prior to April 2005, do not redevelop the CMV of an automobile that has been excluded up to $4,500 of its CMV unless the CMV in excess of $4,500 affects eligibility.

  • If an automobile has been excluded up to $4,500 of its CMV prior to April 2005, it will be necessary to redevelop the automobile beginning April 2005 to determine if it can be totally excluded under the “used for transportation” exclusion. If the automobile cannot be totally excluded based on its use, the equity value must be developed because the “$4,500 of CMV” exclusion does not exist beginning in April 2005.

EXCEPTION: Always redevelop the collector value of an antique or other collectible automobile that has been excluded to $4,500 of its CMV.

1. MSSICS redeterminations

a. Individual owns one automobile that is used for transportation

Exclude the total value of the automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

b. Individual owns one automobile that is not used for transportation

Charge the equity value of the automobile as a resource unless it is excluded under the provisions for property essential to self-support or plan to achieve self-support, or unless conditional benefits apply. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile (see SI 01130.200E.3.).

c. Individual owns two or more automobiles

Apply the following rules when the individual owns more than one automobile:

  • If only one automobile is used for transportation, totally exclude the value of that automobile. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007 for the excluded automobile.

  • If more than one automobile is used for transportation, totally exclude the automobile with the greatest equity value. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007 for the excluded automobile.

  • For any automobile that cannot be excluded for transportation reasons, consider excluding it under the provisions for property essential to self-support or a plan to achieve self-support, or consider if conditional benefits apply.

  • If the automobile does not qualify for exclusion, count the equity value of the automobile(s) as a resource. Complete the Vehicle page in MSSICS following the instructions in MSOM INTRANETSSI 013.007 for any non-excluded automobile(s).

2. Non-MSSICS redeterminations

Until the paper redetermination forms can be revised, take the following action when completing the redetermination.

a. Individual owns one automobile that is used for transportation

Exclude the total value of the automobile.

  • SSA-8203-BK Completion - Question 18

    • Complete the blocks entitled “OWNER'S NAME,” “YEAR OF VEHICLE,” and “MAKE AND MODEL.”

    • Cross through the blocks entitled “CURRENT MARKET VALUE” and “HOW MUCH IS OWED ON VEHICLE(S).”

    • List “transportation” as the main purpose for which the vehicle is used.

  • SSA-8010-BK Completion

Follow the same form completion instructions in SI 01130.200E.2.

b. Individual owns one automobile that is not used for transportation

Consider the possibility of excluding the automobile under the provisions for property essential to self-support or a plan to achieve self-support, or consider if conditional benefits apply. If the automobile cannot be excluded under any of these provisions, count the equity value of the automobile as a resource.

REMINDER: A temporarily broken down vehicle normally used for transportation meets the definition of an automobile (see SI 01130.200E.3.).

  • SSA-8203-BK Completion - Question 18

    • Complete the “OWNER'S NAME,” “YEAR OF VEHICLE,” and “MAKE AND MODEL.”

    • Complete the “CURRENT MARKET VALUE” block, the “HOW MUCH IS OWED ON THE VEHICLE” block, and the “MAIN PURPOSE FOR WHICH THE VEHICLE(S) IS USED” block, and then determine the equity value.

    • List “not used for transportation” as the main purpose for which the vehicle is used.

  • SSA-8010-BK Completion

Follow the same form completion instructions in SI 01130.200E.2.

c. Individual owns two or more automobiles

Follow the instructions in SI 01130.200E.2.c. for the treatment of multiple automobiles and document each vehicle on the paper form as appropriate.

G. Procedure - initial claims for months before April 2005

1. Exclusion regardless of value

Exclude one automobile regardless of its value if, for the individual or a member of the individual's household, it is:

  • Necessary for employment;

  • Necessary for treatment of a specific or regular medical problem;

  • Modified for operation by, or the transportation of, a handicapped person;

  • Necessary, because of climate, terrain, distance or similar factors, for the performance of essential daily activities.

Accept the individual's allegation that the automobile meets one of the above qualifications, absent evidence to the contrary.

2. Alternate exclusion - up to $4,500 of CMV

  • If no automobile is excluded for the reasons shown in SI 01130.200G.1. above, exclude up to $4,500 of the CMV of one automobile.

  • If the CMV exceeds $4,500, count the excess as a resource unless the automobile can be excluded under some other provision (e.g., property essential to self-support, plan to achieve self-support) or conditional benefits apply.

NOTE: Equity value is not a consideration for purposes of this exclusion.

3. Automobiles not wholly or partially excluded

Count the equity value of any automobile the individual owns other than the one wholly or partially excluded under this section as a resource, unless it can be excluded under another provision (e.g., property essential to self-support or plan to achieve self-support) or conditional benefits apply.

H. Procedure – posteligibility for months before April 2005

1. Exclusion same as for initial claims

Apply the automobile exclusion the same as for initial claims, as stated in SI 01130.200G.

2. Vehicle excluded based on use

Do not redevelop the exclusion of an automobile that has already been determined to be totally excluded based on its use unless you become aware of a change relating to the automobile exclusion (e.g., the individual uses a different automobile for transportation, the individual purchases or disposes of an automobile, etc.).

3. Vehicle excluded based on CMV

For the period before April 2005, do not redevelop the CMV of an automobile that has been excluded up to $4,500 of its CMV unless the CMV in excess of $4,500 affects eligibility.

4. Redevelop CMV excluded vehicle for months after March 2005

If an automobile has been excluded up to $4,500 of its CMV before April 2005, it will be necessary to redevelop the automobile beginning April 2005 to determine if the automobile can be totally excluded under the “used for transportation” exclusion. If it cannot be totally excluded, the equity value must be developed because the “$4,500 of CMV” exclusion does not exist beginning in April 2005.

EXCEPTION: Always redevelop the collector value of an antique or other collectible automobile that has been excluded up to $4,500 of its CMV.

I. Procedure - determining ownership and value of an automobile

1. How to establish ownership of an automobile

To establish ownership of an automobile:

  • Accept the individual's allegation of sole or joint ownership of an automobile and his/her proportionate share of joint ownership, absent evidence to the contrary.

  • Resolve any questions by examining the title, the current year's registration, or the bill of sale.

  • For non-MSSICS cases, record the document examined on the EVID or the relevant facts on a report of contact.

  • For MSSICS cases, record the document examined on the EVID or the relevant facts on the File Documentation Notes portion of the Vehicle page.

2. How to determine the CMV of an automobile based on the on-line N.A.D.A. e-Valuator

If the value of an automobile must be developed, get a description of the automobile that is complete enough to enable you to find it in the on-line N.A.D.A. e-Valuator (e.g., 1992 Chevrolet Nova, 4 cylinder, 2 door).

The Average Trade-In Value provided by the N.A.D.A. e-Valuator is the CMV used for resource determinations. If the Trade-In Value is unavailable from the site, obtain the Trade-In Value from a disinterested knowledgeable source (see GN 00301.210 for SSA Purchase of Evidence).

NOTE: If the automobile is more than 20 but less than 25 years old, use the value shown for it at 20 years old.

NOTE: Do not use the N.A.D.A. e-Valuator Rough Trade-In Value or Clean Trade-In Value as the CMV for resource determinations unless the individual presents clear evidence indicating that the vehicle should be considered in one of those categories.

3. On-line N.A.D.A. e-Valuator

Only use the N.A.D.A. e-Valuator guide available through the SSA Digital Library site to determine the CMV of an automobile.

REMINDER: Do NOT use the Internet N.A.D.A. site to access electronic N.A.D.A. guides to verify the CMV of an automobile.

To access the on-line N.A.D.A. e-Valuator in MSSICS, select the N.A.D.A. link above the monthly values table in the Vehicle page. For non-MSSICS cases, access the on-line N.A.D.A. e-Valuator on the SSA Digital Library by following these steps:

Step

Actions

1.

Go to the SSA Digital Library Electronic Resources Site.

2.

The “N.A.D.A. Guide” on the next screen will be pre-filled with the most recent Used Car Guide. If a resource determination is needed for a prior period, select the appropriately dated Used Car Guide by scrolling down the menu and clicking on the appropriate guide.

3.

Scroll down and click on the appropriate State under “Select Region/State.”

4.

Select “Year,” “Series,” and “Body” style.

5.

Select “accessories” appropriate for the vehicle in question. Enter “mileage,” if known.

6.

Click “Show Values.”

7.

Use the value shown under the “Trade” column in the “Adjusted” row. The Trade-In Value must be used for the resource determinations. If the Trade-In Value is unavailable from the site, obtain the Trade-In Value from a disinterested knowledgeable source.

8.

To obtain a printout of the information, select “Reports/stickers” from the top menu. Select “Vehicle Trade Value Summary.”

9.

Click “No” when asked, “Would you like to add optional data to the sticker or report?” Select “Print.”

4. How to rebut the N.A.D.A. e-Valuator value

a. When a rebuttal applies

If the N.A.D.A. e-Valuator Trade-In Value affects eligibility and the individual disagrees with it, give him/her the opportunity to rebut it.

b. What is acceptable rebuttal evidence

An example of rebuttal evidence can be a written appraisal of an automobile's CMV obtained by the individual at his or her own cost from a disinterested knowledgeable source, such as a used car or truck dealer or an automobile insurance company.

5. When you cannot use the N.A.D.A. e-Valuator

Do not use the N.A.D.A. e-Valuator when:

  • The e-Valuator does not list the make and/or model of the vehicle.

  • The e-Valuator does not show a value for the listed make and/or model of the vehicle.

  • The vehicle is a car or truck that is 25 or more years old.

NOTE: Do not use the N.A.D.A. e-Valuator when the vehicle is any motorized vehicle other than a car or truck, or is a non-motorized vehicle (e.g., an animal or animal-drawn vehicle).

6. How to determine the CMV of an automobile when use of the N.A.D.A. e-Valuator is not appropriate

When use of the N.A.D.A. e-Valuator is not appropriate:

  • Obtain a CMV estimate from a disinterested knowledgeable source, when one of the situations in SI 01130.200I.5. exists or other circumstances make use of the N.A.D.A. e-Valuator inappropriate. This estimate may be purchased at SSA's expense per GN 00301.210 and GN 00301.215.

  • Provide the contact with a complete description of the vehicle, including year, make, model, number of doors, equipment, etc. Assume the vehicle is in average condition, absent evidence to the contrary (i.e., the vehicle is damaged or is in mint condition).

  • Inform the contact that the estimate should show what the vehicle would sell for on the open market in the geographic area covered by local media.

If the estimate is obtained by telephone, document the file as follows:

  • In MSSICS cases, input the estimate as the verified value on the Vehicles page (MSOM INTRANETSSI 013.007) and document the pertinent facts of the estimate on the EVID screen (MSOM EVID 001.003) or on the Vehicles page File Documentation notes.

  • In non-MSSICS cases, document the estimate on the Evidence Screen (MSOM EVID 001.003) or a report of contact (Form SSA-5002) showing all the pertinent facts.

J. References

GN 00301.210 SSA Purchase of Evidence

GN 00301.286 Electronic Evidence Documentation and Retention

SI 00870.001 Plans to Achieve Self-Support – Overview

SI 01110.400 What Values Apply to Resources

SI 01130.430 Household Goods, Personal Effects and Other Personal Property

SI 01130.500 Property Essential to Self-Support – Overview

SI 01140.042 Determining Equity Value

SI 01150.200 Conditional Benefits in General

MSOM INTRANETSSI 013.007 Vehicle


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0501130200
SI 01130.200 - Automobiles and Other Vehicles Used For Transportation - 12/03/2013
Batch run: 12/03/2013
Rev:12/03/2013