Motor Vehicle
One motor vehicle, including a motorcycle, moped, motor scooter, motor home not used as a home, or any other motor driven device, is exempt with limitations:
- Have a maximum fair market value of up to $4,650 or less, following deduction of encumbrances.
Encumbrances
An encumbrance on a vehicle is the “pay-off” amount. This amount includes the principal plus any interest that is currently due on the vehicle. The “pay-off” amount does NOT include ALL the interest that will become due and payable in the future. The EW MUST use the “pay-off” balance showing on a current monthly statement or contact the lender for the current pay-off amount.
The encumbrance is then subtracted from the Fair Market Value, resulting in the Equity Value.
Kelley Blue Book (KBB) Value
The gross value of a vehicle shall be determined by the use of the on-line “Kelley Blue Book” website. Information regarding the vehicle’s year, make, model and number of doors is required.
[Refer to "Motor Vehicle" in the DEBS BP].
Client Disagreement with Determination of Value
When applicants/recipients disagree with ANY of the above determinations of value, they may submit three (3) written estimates of value from car dealers.
This process may be used only AFTER the value of the motor vehicle has been determined by one of the methods listed above.
These written estimates are acceptable only if ALL of the information listed below is included:
- The name of the dealer
- The phone number of the dealer
- The name of the client
- The date
- The make, model and year of the motor vehicle, and
- The dollar value of the vehicle.
Related Topics
Equipment and Materials for Self Employment
Real Property Not Used as a Home