5154-8 VEHICLES
A vehicle is any passenger car or other motorized vehicle used to provide transportation of persons or goods. This includes cars, trucks, recreational vehicles (RVs), boats, snow machines, all-terrain vehicles (ATVs), motorcycles, airplanes, or other motorized vehicles.
Most vehicles are NOT counted if they are intended to be used for one of the following reasons:
For family transportation to meet the household’s basic needs, such as getting food, medical care or other essentials. This includes vehicles used:
For subsistence hunting and fishing;
To carry the household's primary source of heating fuel or primary source of water;
To transport a household member to and from work, school, training, or a work activity such as community work service or job search;
As the household's home;
To produce self-employment income for a household member;or
To transport a disabled household member whose needs are not included in the case. Disabled, in this section, covers both permanent and temporary disabilities. For instance, it includes disabilities caused by chemotherapy, a broken leg, and respiratory illnesses. The vehicle need not have special equipment or be used primarily for transportation of the disabled person.
Example:
Household with one adult living in Fairbanks owns two vehicles including
one truck and one motorcycle. He uses both vehicles to get to and from
the store and to look for work – the truck in the winter and the motorcycle
in the summer. Both vehicles are exempt since they are used for
family transportation and job search activities.
Verification:
Accept client statement regarding use unless questionable. See MS 5000-4B for the definition of questionable information. If there are more vehicles than the number of drivers in the household or the vehicles are not in current use, obtain more information to determine why they are needed and how they intend to use them.
A vehicle that is not exempt under the above section counts against the resource limit. The countable amount is the owner’s equity (fair market value minus the amount owed on the vehicle).
The vehicle value does not include optional equipment, nor does it include shells or campers that are mounted on the vehicle. Shells are excluded as personal effects; campers are countable resources.
Verification:
The fair market value and amount owed must be determined. Acceptable evidence of the value and amount owed includes a statement from the household, lien holder, or other reasonable evidence.
The caseworker must document how he or she determined the owner’s equity value of the vehicle. If the caseworker finds the client’s statement of a vehicle’s value questionable (including circumstances where the value seems too high and makes them ineligible), they can verify the vehicle’s value by:
Using the NADA Appraisal Guides on the Internet at www.NADAguides.com. (Refer to the Administrative Procedures Manual section 105-15 for procedures for using the NADA web site.) The fair market value is the base amount quoted as Average Trade-in or Low Retail;
Getting an appraisal from a local dealer;
Using local newspaper ads, community bulletin boards or other local advertisements giving the selling price for similar vehicles; or
In remote areas, using collateral contacts from a disinterested knowledgeable source, such as a bank, village council, store owner, merchant or dealer.
If the household questions the value assigned to their vehicle, discuss with them the reason they think the vehicle is worth less and document this information in the case file. For example, they may explain that the vehicle is not running or needs significant repairs. Accept the household's stated value unless the explanation provided is questionable. See MS 5000-4B for the definition of questionable information.
Example 1:
Judy Jetson’s application states she owns
a 2003 Toyota Camry
used to get to work and a 1995 Suzuki motorcycle
that her son uses for recreation. She values the Toyota
at $5,000 but it is exempt because it’s used for transportation. She
states the motorcycle is worth $2,100 because that’s what she paid for
it 5 years ago. The motorcycle would make the household ineligible
but the estimated price seems high to the caseworker. They check
NADA and find the motorcycle is actually valued at only $1,395. The
motorcycle‘s equity value counts towards the resource limit.
Example 2:
Fred Flintstone submits an application
for his family. He reports they own a 2005 Ford F150 used for him
to get to work and a 2006 Honda Accord that
his wife uses to take the kids to school and do the shopping. When
the family applied for assistance 9 months ago, they also owned a 2000
Bayliner. When Fred was asked
about the boat at his interview, he stated he sold it 4 months ago. He
stated he did not have proof of the sale. The caseworker finds this
questionable so checks INGENS. DMV records on INGENS
shows the boat is still registered to Mr. Flintstone.
The caseworker then looks the boat up on NADA and finds the value
is $3,600. The caseworker must give the household an opportunity
to verify the sale of the boat before determining eligibility.
5154-8 C. VEHICLES IN REMOTE AREAS
Used vehicles such as boats, snow machines, and ATVs that might be salable in urban Alaska may not be salable in remote areas. This does not make such vehicles exempt from consideration as a resource, but it may result in a determination that a vehicle has little or no market value in the community.
Caseworkers will determine fair market and equity values for non-exempt vehicles in remote areas based on:
The local market conditions and circumstances that exist in the community, including the presence or absence of a significant cash economy. (How much would the vehicle sell for as is, where is? What are other vehicles of its type selling for in the community?);
Accessibility of parts and repair service; and
Information provided by the household.
If the caseworker determines that a countable vehicle is not salable in the community, the vehicle’s resource value is zero.
Verification:
The caseworker must document how he or she determined whether a vehicle is countable or exempt. The equity value of a countable vehicle must be determined. Acceptable evidence of the vehicle’s equity value includes a statement from the householder, lien holder, or other reasonable evidence.
5154-8 D. JOINTLY OWNED VEHICLES
Jointly owned vehicles are treated like other jointly owned resources as described in MS 5152-2.
If the joint owner does not live with the household, has possession of the vehicle, and is unwilling to sell the vehicle, it is considered an unavailable resource.
When a vehicle is in a household members name but they claim the vehicle belongs to someone else it is possible to exempt the vehicle. In this situation the caseworker must ask more questions such as:
Who has possession of the vehicle?
Why is the vehicle in your name?
Who is making payments on the vehicle?
Who maintains the vehicle?
Example:
At application Jack reports he has two vehicles in his name: A 2004
Ford F150 used to get to work and a 2006 Bayliner
that he states really belongs to his brother-in-law, Joe. The boat
is in Jack’s name because Joe has bad credit and couldn’t get a loan.
However, the boat is in Joe’s possession and he makes all the payments
himself. The case worker speaks to Joe who confirms the information.
The boat is not a countable resource to Jack.
Verification:
The caseworker must document the reason he or she determined the vehicle belongs to someone else.
5154-8 E. INACCESSIBLE VEHICLES
Vehicles in Another State
A vehicle in another state is a countable resource unless the vehicle can be exempted under MS 5154-8A. For example, the household must have plans to continue to use the vehicle for a reason listed in MS 5154-8A on a periodic basis in order for the vehicle to retain its exempt status.
Vehicles residing in another state due to a recent relocation are not countable if the intent is to relocate and register the vehicle in Alaska within a reasonable time period.
Verification:
The caseworker must document why the vehicle is located in another state, as well as future plans for the vehicle.
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