Yeah, its called a made up story, a total fabrication as it didn't actually happen. To not qualify for Welfare, your primary vehicle value has to be worth more than $10,000.Obviously, there's a bit more depth to this
Resource limits go up with age, granny's limit would increase by 40% if she was over age 60, which I assume she was.
Hell your granny could have had a car and several thousand in the bank and still qualify.
Homes aren't used against you either, unless you have more than 1.
This is why I know its a BS story.
Your granny doesn't have to lie to have a mail order business where she sends her used panties to old creepy dudes. Businesses aren't required to make a profit.