Vehicle

Definition

[EAS 42.215.4]

The definition of a vehicle includes but is not limited to the following:

Cars
Trucks
Sports Utility Vehicles (SUVs)
Vans
Boats
Trailers
Campers
Recreational Vehicles (RVs)
Motorcycles
Houseboats
Jet Skis
Snowmobiles

Leased Vehicles

A vehicle which is leased or on a lease/purchase option is not regarded as property until a transfer of ownership has occurred. A leased vehicle remains in the ownership of the leasing firm.

ExampleExampleA client applies for CalWORKs for himself, his wife, and their 3 children. He has leased a car from Future Fords. His lease contract states that he has the option to buy the car and that all his monthly lease payments are applied toward the purchase of the car. Since Future Fords is the owner of the vehicle, the vehicle is not counted as property to the client.

Note: Encumbrances on motor vehicles must be recorded with the Department of Motor Vehicles (DMV) to be recognized as a valid encumbrance by this agency.

Discrepant or Unreasonable Self-Certifications

As with all CalWORKs eligibility determinations, if the County has reason to believe the information provided by the client may be questionable or incorrect, and that this potential discrepancy would affect the AU’s eligibility for assistance, the EW must take steps to resolve potential discrepancies with the client.

ExampleExampleA client states on the CW 80 that she has a late model vehicle valued at $2,000 but does not provide any information on the CW 80 to explain the very low value. Since new cars have a value that significantly exceeds $2,000, it is reasonable for the EW to question the accuracy of the estimated FMV. The EW must contact the client to inquire whether the client may have made a mistake.

The following is an example of a possible mistake a client may make:

ExampleExampleThe client could have written $2,000 instead of $22,000; it could be a salvage car; she could have confused equity value with FMV, etc.. The worker would permit the client to correct the CW 80 and would re-evaluate the AU’s eligibility. If the client is not able to explain the low value and does not submit a corrected CW 80, the worker will deny/discontinue the case for exceeding the property limit.

Re-Evaluation

A vehicle must be evaluated at application. Any additional vehicle that an AU acquires while on CalWORKs must be evaluated at the time of acquisition. However, once a vehicle has been evaluated, it does NOT need to be re-evaluated until the next annual RD.

Vehicle Overview

When a vehicle meets any of the following criteria, the vehicle is exempt from the equity value test:

is used primarily for income-producing purposes;
annually produces income that is consistent with its FMV, even if only on a seasonal basis;
is necessary for long-distance travel, other than daily commuting, that is essential to the employment of a family member;
is used as the family’s residence;
would be exempted under any of the above exemptions, but the vehicle is not in use because of temporary unemployment;
is necessary to transport a physically disabled family member, including an excluded disabled family member, regardless of the purpose of the transportation;
is used to carry fuel for heating or water for home use, when the transported fuel or water is the primary source of fuel or water for the family;
was transferred to the client as a gift, donation family transfer;
is used by an AU member under the age of 18 for the purposes of commuting to and from employment; or
is used by an AU member under the age of 18 for the purposes of training or education which is preparatory to employment or to seek employment.