It can be difficult to get approved for an auto loan if your income is Social Security because subprime lenders require your income to be taxable, which SSI isn’t. In order to get approved, you either have to have an additional source of income that can be taxed, or a cosigner or co-borrower that earns taxable income.
Thereof, can a person on Social Security buy a car?
Yes. If you receive Social Security Disability Insurance (SSDI), there is no limit to how many cars you can own. If you receive Medicaid or Supplemental Security Income (SSI), you are allowed to own one car.
Correspondingly, can I get a loan if I only receive Social Security?
Lenders consider all your income when you apply for a mortgage loan. That includes your Social Security income. You can count any income you receive through this program, including Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) and traditional Social Security income.
Can I get car on disability?
You can get a Motability car or vehicle if you’ve been awarded: the higher rate mobility component of Disability Living Allowance (DLA) the enhanced rate mobility component of Personal Independence Payment (PIP) Armed Forces Independence Payment (AFIP) or War Pensioners’ Mobility Supplement.
We may pay a one-time emergency advance payment to an individual initially applying for benefits who is presumptively eligible for SSI benefits and who has a financial emergency.
You may be able to get a free car if you are disabled and meet certain criteria.
- Have a medical condition.
- Have a valid driver’s license.
- Have a true need for personal transportation.
- Can prove you can’t afford to purchase a car.
No, you cannot borrow from your current or future Social Security. Through the years, there have been talks about allowing the option for loans from Social Security. However, the system was never designed to allow such a thing. Social Security was established in 1935 by Franklin Delano Roosevelt.
As a retiree, your income includes Social Security income as well as any funds you get from pensions. You can also qualify for a car loan on the basis of income from other sources such as annuities, dividends or rental income.
The SSA is not concerned with the value of the vehicle. Owning one $20,000 car won’t count hurt you. However, owning two cars that are valued at just over $1,000 will count against you.