42-200.M Steps In Evaluating Vehicles

††

Table of Contents

 

Topic

Section

Steps in Evaluating Vehicles

42-200.M.1

Examples of Vehicle Evaluation

42-200.M.2

Inaccessible Vehicles

42-200.M.3

 

 

 

42-200.M.1
Steps in Evaluating Vehicles

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Top

A vehicle must be evaluated at initial certification, when the Assistance Unit (AU) reports on the SAR 7 that they have acquired a vehicle, and at recertification.

 

The countable value of each vehicle is determined as follows.

 

Step

Action

1

Determine if the vehicle is excludable as a resource.

         If it is excluded, do not count vehicleís value toward the AUís maximum resource limit.

         If not excluded, go to step 2.

2

Determine the vehicleís Fair Market Value (FMV) and any encumbrances.

         Got to step 3.

3

Determine the vehicleís Equity Value (EV), by subtracting encumbrances from the FMV.

         Any portion of the FMV which exceeds the encumbrances is the EV.

Example:

Vehicle has a FMV of $3,500 and has $2,900 in encumbrances.

The EV is $3,500 - $2,900 = $600 (EV).

         Go to step 4.

4

Take the EV amount (from Step 3) and subtract $9,500.

         Go to step 5.

5

Any EV amount in excess of the $9,500 vehicle asset limit will be counted as a resource attributable toward the AUís maximum resource limit.

 

 

 

42-200.M.2
Examples of Vehicle Evaluation

Example #1:

An AU self-certifies that they own a non-exempt motor vehicle with a FMV of $3,500.The AU still owes $1,450 on the vehicle (the encumbrance), resulting in a total EV of $2,050.Since the total EV is less than $9,500.No value will be counted as a resource toward the AUís maximum resource limit.

Computation of equity counted toward the vehicle resource limit:

 

FMV of the motor vehicle

$3,500

Less Encumbrances

- $1,450

Total EV

= $2,050

Less $9,500

- $ 9,500

Amount Counted Toward Resource Limit

=††††† $ 0

 

Example #2:

The client owns a non-exempt vehicle with an EV that exceeds $9,500.The AU self-certifies that the FMV is $14,000, and they owe $3,000.After subtracting the amount owed on the vehicle from the FMV, the HSS determines the EV of the motor vehicle is $11,000.In this case, the EV of the vehicle exceeds the $9,500 limit by $1,500.The $1,500 is counted toward the AUís maximum resource limit.

Computation of equity counted toward the vehicle resource limit:

 

FMV of the motor vehicle

$14,000

Less Encumbrances

- $ 3,000

Total EV

= $11,000

Less $9,500

- $9,500

Amount Counted Toward Resource Limit

=$ 1,500

 

Example #3:

The client received a vehicle from her father and provides the HSS with verification from DMV that the vehicle was a gift.Because it was given to her as a gift, the vehicle is completely exempt from consideration as a resource.Even if the FMV of the motor vehicle is well over the $9,500, the HSS would not need to perform a calculation to determine the value, or count the value of the motor vehicle toward the AUís maximum resource limit.

42-200.M.3
Inaccessible Vehicles

 

 

 

 

 

 

 

 

 

Top

If the vehicle is licensed in the AUís name but the vehicle is inaccessible because it is in the possession of a person who is not in the AU (i.e., separated spouse), that vehicle cannot be automatically excluded as inaccessible.The AU must provide evidence (a statement from the individual refusing access, or from a collateral contact, or from the AU) that the vehicle is inaccessible before it can be excluded.

Examples:

         The whereabouts of the person with the vehicle is unknown.

         The vehicle is in a locked storage facility, to which the AU has no access.

         The person with the vehicle has left the AUís residence and refused the AU access to the vehicle.

         The AU does not have the ability to sell the vehicle without the agreement of the joint owner who refuses to comply.