Using SSDI for Automobile?

[marsss7080]

Hi there, 
OK, I am new to this blogging and to this forum and this website. I know this is sound really crazy and maybe I am for even asking.
Coming up on my first anniversary of being HIV+ in March and having been approved for SSDI in October '07 it sounds silly but can an individual get approved or use his/her SSDI for monthly payments for an auto loan.
I am blessed that my monthy SSDI check is enough to cover my bills and potential monthly car loan note, but not sure how the banks, loan companies (i.e. lending tree etc.), or car dealerships handle this type of situation. For all I know they just might say STAY AWAY!       
I realize that credit score and other factors contribute to the decision but I don;t work and do need another car as mine I see is beginning to fail after 10 years. It's not like I am even looking for a new car a good reliable fairly newer model would do. 
Has anyone heard of any lending companies or situations where this has occured?[/font]

[thunter34]

First anniversay of HIV + and already approved for SSDI?

I wasn't aware that that sort of thing ever actually moved that quickly...not to mention one could even get it without other factors in addition to HIV.  Or that SSDI can ever be enough to cover monthly bills AND a car note.  Wow.

[ademas]

Car dealerships don't care where your income is from, as long as you can verify.  Most don't even verify your income as long as your credit is good (although it wouldn't surprise me if this has tightened up given the current state of the lending business...)

I'm sure a lot of retired and disabled people buy cars with their Social Security as their primary source of income.

[pozniceguy]

I agree with Ademas...most loans are awarded on your credit History and ability to pay...the actual source of income is not usually a concern.. to many loan agencies a "govt " check is very reliable  and they will ask you to "direct deposit" with their institution......a car is a "secured" loan so many places are even more lenient on the credit history.. Personally I would stick with a bank or credit union that knows you or at least serves a group you can be associated with.....

God luck

Nick

[cmhjeff]

I traded in my Mini for my Caliber August 2006 and my income was SSDI and private LTD insurance. I couldn't then and still can't drive due to some issues with my vision but the dealership never gave me any problems. My partner test drove the car I was very honest and upfront from the start that my income was from disability. Surprisingly I was never asked to provide proof of either source of income. The only thing at the time that may have played to my advantage was that I was officially still employed at the time and only on a medical leave. I've since lost that job so who knows how it all would have worked out today. I started the entire process online so the dealer was able to pull my credit bureau prior to even going to the dealership. I found it was a positive experience and a lot less stressful doing online. I think they look at your ability to pay and your credit score not your health. At least that's how it worked for me.

[Winiroo]

Hello.

I'm jealous LOL

  Wendy

[SteveA]

SSDI is just considered income by lending agencies. Cars, Homes Credit cards etcetera. Doesn't matter if you're working or not, they just want to know they're getting paid. Social Security doesn't care how you spend your SSDI check so long as you're not fraudulently receiving both SSDI and outside income above what is allowed by law as well.

[Oceanbeach]

The lender will pull your credit reports from any of the three credit reporting agencies and will report you are disabled in the employment part of the report.  This will never go away as my Transunion shows an employer from over 25 years ago and medical disability and then self employed.  When I used my SSDI for a loan, I did not get the loan and any future employer can see I was considered medically disabled.

At the time, it did not seem like a huge deal because people living with HIV were more or less expected to live another 5 years.  Now, with improved treatments and medications, we can expect to live a full life and the possibility to return to work can be considered realistic.

Something else you could consider is a financed automobile requires full coverage insurance where as one which is paid off can use a lower cost insurance policy (PD & PL).  I did not have transportation for a few years after my AIDS diagnosis in 1996 until one day... I was on a bus and saw an old MBG sitting on a car lot.  I had to learn to do the repairs and wait 3 to 5 days for parts to arrive and even with that car, I had also gone up to 9 months without transportation.

Since then, I have gotten good at picking $500.00 cars because when one of those breaks down, there is a choice to repair or walk away from it.  I bought a $500.00 Chrysler LeBaron convertible a couple of years ago and got tired of it breaking down and spending money on parts.  I called it The Whale Gusher and recently sold it on Craigslist for $500.00 and used that money to buy a 1992 Saab convertible (The Saab Story).

Living with HIV is taking a chance on many issues, many of which cost money.  If you are on your first ear of disability, you are probably on State Disability and next year SSDI will be much less income.  The annual benefit increases never keep up with the cost of living so we never know what to expect next year.  This is a very good time to begin looking at "piece of shit" cars which you can walk away from and save your money for something more important such as increased share of cost for medical services or medications.  Have the best day
Michael

[BT65]

I agree with you, Michael.  The money made soley on SSDI could not possibly meet all the demands of daily life plus loans.  There is just no way that I could afford full-coverage insurance, let alone a new car loan. 

And yes, the yearly 'cost of living' raise we folks on SSDI get does not meet the rising costs of everything else-food, gas, medical co-pays etc. 

Just weigh out what will happen once your sole source of income is SSDI.  You don't want to put yourself in a hole.

[marsss7080]

WOW, Thank you all for all the feedback and the unique and individual perspectives on this topic. My '97 Acura CL has 141K and though I only drove 7K last year my 2 door baby is showing signs of slowing down here and there. I know, I know it could probably go another say 50K or 60K depending upon usage, weather, etc, etc. The CL is paid for and I have been putting away the same monthly note for about a year now for a down payment along with my trade in but had concerns regarding my HIV and the semi hassle I would or would not receive.

I respect the "Shit car" syndrome that Sonomabeach described in his own transportation world, but frankly it would not work for me.

To: ademas; pozniceguy; SteveA & cmhjeff - Thanks for the useful and informative information. I now know that they don't care really that much where the money comes from as long as it is a stream of continual income to keep the note going to meet it's financial obligations. Thanks, I truly appreciate your thoughts. 

To: thunter34; Bettytacy - A quick background on me. I was diagnosed in March 0f '07 with a viral load of 750K+, CD4 count was 4, yes 4 not, 40 not, not 400. I litrally have crawled my way back in a year due to my AA personality, my positive thinking and wanting to "fast track" my HIV recovery and having a great support network. Currently my CD4 is 125 and Viral load is undetectable. I previously worked long, hard years in both the retail industry and Marketing & Advertising fields. According to what was told to me by Social Security my SSDI was based upon the ten highest years of earnings. They add it all up throw it into a mathematical formula and presto out comes an amount monthly.
Out of necessity I became my own case manager, I read everything and still do about HIV, benefits, programs etc. I took the bull by the horns and move forward filling out and submitting applications and receiving approval for virtually all my diversified benefits. In 2004 I moved back home after my father died in 2001. Our colonial home I was raised in is big thank god and it's paid for. I have no rent and live with my retired mother. Both my parents worked hard to afford our home, property and the level of life we have. It wasn't handed to us. The cost of living monthly is relatively low and I Do pay all the utilities.
So yes, I do have enough money to pay for a monthly car note.
I'm sorry that you feel that SSDI could not possibly meet all the demands of your daily life and that you can't afford full-coverage for your auto ins. let alone a new car note.   
Further, I'm sorry that you feel that you need to bash someone asking a question like mine with out answering it plainly as the others I thanked above did.   
I have worked very hard at obtaining my SSDI while I was very sick in '07 at the initial stages of taking my meds and fighting PCP to boot.   

[BT65]

Further, I'm sorry that you feel that you need to bash someone asking a question like mine with out answering it plainly as the others I thanked above did.   
I have worked very hard at obtaining my SSDI while I was very sick in '07 at the initial stages of taking my meds and fighting PCP to boot.   

OK, I've read all the respones, and fail to see who's "bashing" you.

[Oceanbeach]

My current $500.00 car has over 100,000 miles, recently rebuilt, fully loaded with leather interior.  This was a rare find and if your current vehicle can go another 50 to 60 thousand miles... I would recommend having it maintained for a while longer.  I have been living with HIV since 1994, AIDS since 1996 and one thing we never know is what to expect next year.  Have the best day
Michael

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[Winiroo]

My shit car cost $2000 it is a 1994 and only had 30,000 miles on it. It was an old lady special. 

By all means this is nothing like what I would choose if I had my choice but the deal was too sweet.

The car is too big for my taste.

Wendy

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