Will my new financed car affect my CalWORKs eligibility during recertification?

dont worry about it. calworks has a $10,000 vehicle exemption now and they only count the equity u have in the car not the full value. so if u just got it u probably have almost no equity since most of ur payments are going to interest not principal

You definitely need to report the car, but don't panic about losing your benefits. CalWORKs has specific rules for vehicles. As the previous commenter mentioned, there's a $10,000 vehicle asset exemption for cars used for work/transportation. Beyond that, they only count your equity in the vehicle (the difference between the car's value and what you still owe on it). For example: If your car is worth $19,000 but you still owe $18,500 on the loan, your equity is only $500, which is well under the limit. On your recertification form, make sure to include both the value AND the amount you still owe. There should be sections for both. This makes it clear you don't own it outright.

I went thru this EXACT thing last year!! The eligibility worker told me they look at the "equity value" not the purchase price. Since you just got the car your equity is super low. Just be honest about everything and you'll be fine. They also told me that even if your equity was high, they don't count the first $10k of a car's value against your resource limit if you need it for work or to transport kids to school/childcare so you're double protected.

The resource limits for CalWORKs can be so frustrating! I had a similar issue when reporting my car. Make sure you list BOTH the value AND the loan amount clearly on your SAR7/recertification. They should only count the difference (your equity). One thing to watch out for - if you're doing DoorDash, make sure you're reporting that income correctly too. Self-employment income reporting is super important for CalWORKs and they'll want to see proof of your expenses too so you get the right deductions. Missing income reporting is actually more likely to cause problems than your car situation.

DONT WORRY!!! I own TWO cars on my CalWORKs case right now. One is worth about $12k (2018 Honda) and another worth about $7k (older Toyota) and I still get benefits no problem. They only care about the equity value. Also there's a $10k exemption per vehicle used for essential transportation now in California. You're totally fine as long as you're honest about everything. Just make sure you have all your loan paperwork ready in case they ask for verification. My worker never even asked to see mine but better safe than sorry!

Let me clarify something important about vehicles and CalWORKs resource limits: 1. California exempts up to $10,000 of equity value for ONE vehicle per household 2. For your situation, they calculate: Car value ($19,000) minus amount owed on the loan = your equity 3. If your equity is less than $10,000, it's fully exempt 4. If your equity is over $10,000, only the amount over $10,000 counts toward your resource limit Make sure on your recertification form you clearly indicate: - The car's value ($19,000) - The outstanding loan amount - That you use it for work transportation (DoorDash) Since you just purchased it and have only made a couple payments, your equity is likely very low, so this shouldn't affect your eligibility at all.

just tell them the truth thats what i always do. they got ways of checking stuff anyway so no point in hiding it. my worker told me they mostly care about bank accounts not cars anyway

I had a NIGHTMARE getting through to my worker when I needed to explain my car situation. Kept calling for 3 days straight and either got voicemail or disconnected. Finally I tried this service called Claimyr (claimyr.com) that got me through to a real person in about 20 minutes. They have a video showing how it works at https://youtu.be/jzISHxCPLwE - it was way better than wasting hours redialing. My worker explained exactly how to list my car and loan on the recert and it was no problem at all.

One more thing to consider - make sure your car insurance is up to date when you submit your recertification. Sometimes they ask for proof of insurance too, especially if you're using the vehicle for work purposes like DoorDash. Just have that documentation ready with your other paperwork so you don't delay the process if they request it.

I'm glad everyone's reassuring you about the car situation - they're absolutely right about the equity calculation. Just wanted to add that since you mentioned you're struggling with the monthly payments, you might want to look into whether your county has any transportation assistance programs or car repair vouchers through CalWORKs. Some counties offer help with car maintenance/repairs for people who need their vehicles for work. It's worth asking your eligibility worker about during your recertification appointment. Also, keep all your DoorDash expense receipts (gas, car maintenance, phone bill, etc.) organized - those deductions can really help lower your countable income and might even increase your benefit amount.

Just wanted to share my experience since I went through something similar last year. I had a financed car worth about $16k with $15k still owed on it when I did my recertification. My worker was really helpful and explained that they only count the equity (what you actually own), not the full value. Since you just got the car and only made 2 payments, your equity is probably around $400-500 like you calculated, which is nowhere near the $10k exemption limit. The key thing is being transparent on your forms - list both the car value AND the loan balance clearly. I also recommend bringing a copy of your loan paperwork to your appointment just in case they want to verify the balance. My worker didn't ask for it, but it gave me peace of mind to have it ready. Don't stress too much about this - the system is actually designed to understand that people need reliable transportation for work. Your DoorDash income dependency actually helps your case since you can clearly demonstrate the car is essential for your employment. You're doing everything right by being honest and asking questions beforehand!

I just wanted to add that it's really important to keep good records of your DoorDash earnings and expenses, especially since you mentioned the income varies week to week. For your recertification, they'll want to see at least 3 months of earnings history if possible. Make sure you're tracking: - Your gross earnings from DoorDash - Gas receipts - Car maintenance/repair costs - Phone bill (portion used for work) - Any other vehicle expenses These business deductions can significantly reduce your countable income and might actually help you qualify for a higher benefit amount. I use a simple spreadsheet to track everything monthly - it makes recertification so much easier. Also, since you mentioned struggling with the car payments, some counties have emergency assistance programs that can help with transportation costs for CalWORKs recipients who need their vehicle for work. It's worth asking your eligibility worker about this during your recertification appointment. You're already doing great by being proactive and asking questions - that's exactly the right approach!

Hey StarSurfer! I just went through my recertification a few months ago with a similar situation - financed car for work. Everyone here is giving you great advice about the equity calculation. One thing I'd add is to make sure you submit your recertification paperwork early if possible, like a week or two before your deadline. That gives you time to provide any additional documentation they might request without risking a gap in benefits. Also, since you're doing DoorDash, consider asking your worker about the Earned Income Disregard. The first $225 of your monthly earned income doesn't count against your benefit calculation, plus they disregard part of your remaining earnings too. With your car expenses as business deductions AND the earned income disregards, you might actually be in a better position than you think benefit-wise. Don't let the stress get to you - sounds like you're being responsible and doing everything right. The system is designed to help people who are working toward self-sufficiency, which is exactly what you're doing with the DoorDash work!

I want to echo what everyone else is saying - you're going to be fine! I've been on CalWORKs for 3 years now and have gone through several recertifications with a financed vehicle. The equity calculation is really straightforward once you understand it, and with only 2 payments made on a $19k car, your equity is practically nothing. One tip I haven't seen mentioned yet: when you fill out the recertification form, there's usually a section for "comments" or "additional information." I always use that space to briefly explain my situation - something like "Vehicle purchased for DoorDash work transportation, current loan balance $18,600." It helps the eligibility worker understand your situation right away instead of them having to dig through all the numbers. Also, keep a copy of everything you submit for your own records. I learned this the hard way when my paperwork got "lost" once and I had to resubmit everything. Having copies saved me so much time and stress. You're being super responsible by asking these questions ahead of time. Most people just wing it and then panic when there are issues. You've got this!

I went through this exact same situation about 6 months ago! Had a financed car worth around $18k that I needed for my Uber driving. I was so worried they'd cut my benefits, but my eligibility worker was actually really understanding about it. Here's what helped me get through the process smoothly: I brought a printout from my lender showing the exact payoff amount on the day I filled out my recertification. That way there was no confusion about how much equity I actually had (which was basically nothing since I'd only had the car for a few months). Also, make sure you emphasize that the car is essential for your work income. I wrote a brief letter explaining that without the vehicle, I couldn't earn any income at all, and attached it to my recert paperwork. My worker said that really helped show why the car was a necessity, not a luxury. The whole process ended up being way less scary than I thought it would be. Your equity is definitely going to be well under the $10k exemption, so you should be totally fine. Just be thorough with your documentation and you'll get through this no problem!

I'm in a similar boat - just got a used car for work and my recertification is coming up next month. Reading through all these responses is so reassuring! I had no idea about the equity calculation vs. full value. My car is worth about $15k but I still owe $14,200 on it, so sounds like my equity would only be $800 which is way under that $10k limit everyone mentioned. Question for those who've been through this - do they typically ask for verification of the loan balance right away, or only if there are questions? I want to be prepared with all the right paperwork. Also really glad to hear about that earned income disregard for DoorDash work - every little bit helps when you're trying to make ends meet! Thanks to everyone sharing their experiences here. This community is amazing for helping navigate all these confusing rules.

As someone who's helped many people navigate CalWORKs recertifications, I want to emphasize a few key points that will help put your mind at ease: 1. **You're absolutely doing the right thing by reporting the car** - honesty is always the best policy with CalWORKs, and trying to hide assets can cause much bigger problems down the road. 2. **The equity calculation works in your favor** - With only 2 payments made on a $19K car, your equity is probably around $400-500, which is nowhere near the $10,000 vehicle exemption limit. 3. **Your work justification is strong** - The fact that you need this car specifically for DoorDash to support your family makes it a legitimate work expense, not a luxury purchase. **Pro tip for your recertification form**: In addition to listing the car value and loan amount in their respective sections, use the comments/additional information section to write something like: "2019 vehicle purchased 2 months ago for DoorDash work transportation. Current loan balance approximately $18,600. Vehicle essential for earning income to support family." This proactive explanation helps your eligibility worker understand your situation immediately and shows you're being transparent about everything. You've got this - sounds like you're handling a tough situation responsibly!

I just wanted to jump in here as someone who's been through multiple CalWORKs recertifications with financed vehicles. Everyone has given you excellent advice, and I can confirm that your situation is really common and shouldn't cause any problems with your benefits. One thing I haven't seen mentioned yet is that when you're doing your recertification interview (whether by phone or in person), don't be afraid to ask your eligibility worker to walk through the asset calculation with you if you're still confused. Most workers are actually pretty patient about explaining how they calculate equity vs. full value, especially when you're being upfront about everything. Also, since you mentioned you're struggling with the car payments, make sure you're claiming ALL your legitimate business expenses for DoorDash on your income reporting. Gas, maintenance, insurance (the business portion), phone bill percentage, even things like hand sanitizer or masks if you use them for deliveries. These deductions can really add up and lower your countable income. You're being so responsible by asking these questions ahead of time instead of just hoping for the best. That tells me you're going to handle this recertification just fine. Your equity is practically zero, you have a legitimate work need for the vehicle, and you're being completely honest about everything. You've got this!