The car counts as assets, I know in CA if the car has more then $3000 in equity then they can't help you until you get rid of the car. Your not allowed to have more then $3000 in assets. So it means your either stuck paying car payments on a good car or stuck with an old clunker.
|Excluded Resources – Resources which are excluded are the home and surrounding property, vehicles, household goods, personal effects, resources with an equity value of $1500 or less (excluding financial instruments), and resources with a cash value that is not accessible to the household (such as irrevocable trust funds, security deposits on rental property, etc.)|