Bying a car while on ODSP

[Galician]

Just wondering, is it possible to finance a vehicle (nothing extreme,
just newer basic transportation) while on ODSP?

Its currently possible for me to do so income wise, but I have no idea
how ODSP would view this or allow it.

[jbkeh]

Yes.

Normally, a loan is considered income in the month received, but if it
is applied to purchase an EXEMPT asset, then the loan is not income. A
vehicle (only one, unless the other is required for a dependent to
maintain employment outside the home) is EXEMPT.

See Dir 4.5 and Dir 5.10:

http://www.mcss.gov.on.ca/mcss/english/pillars/social/odsp-is-directives/ODSP_incomesupport.htm

[dba...@lcds.on.ca]

Here is what the ODSP Directives say about owning a vehcile - yes you may
own one

DIRECTIVE 4.5 MOTOR VEHICLES

SUMMARY OF LEGISLATION

The value of a person’s interest in a motor vehicle is exempt as an asset.
If a second motor vehicle is required to permit a dependant to maintain
employment outside the home, the value of the second motor vehicle is
exempt up to a value of $15,000.

LEGISLATIVE AUTHORITY

Sections 28 (1) 6, and 7 of the ODSP Regulation

SUMMARY OF DIRECTIVE

• The value of a person's interest in one motor vehicle is exempt as an
asset.

[mking101]

I cannot see why not, if you have the money to do so. I also think it
would be asset exempt as it is your primary transportation source.

Also, I once applied for a car loan at my Scotia Bank, and the manager
there at that time - even tho I had enough to pay for one - informed
me that "Disability income is not 'true' income" - so wherever you are
going, make a list of your income and expenses, to show you can afford
it.

Great for you, wish I had a car...

[abrowne]

Galacian,
Yes, you can get a vehicle financed.  However, a word of advice.
If your credit is poor and you do not have additional income outside
of ODSP, it may be difficult to get a loan.  If so, the monthly payments
may be higher.

Further ...

Your ongoing fixed costs with a vehicle will be well beyond the
financing costs.  The minimum monthly expense I am aware of is an
individual who owns their car right out (no financing or loans), but
after insurance, license, maintenance, gas, etc. she pays over $600
a month on average and she doesn't travel a lot out of town or
anything.  In fact, has been trying to cut back because the price of
gas is killing everybody.  Virtually everybody else I know with a
vehicle pays much more (but then again, they're not on ODSP).
Angela