.jpg "When you retire, should you keep or sell your car? Here's a comprehensive guide to help you make an informed decision.")
INTRO
SHOULD YOU SELL YOUR CAR WHEN YOU RETIRE?
PROS OF SELLING YOUR CAR
Financial Savings: Selling
your car can significantly reduce expenses such as maintenance, insurance,
and fuel. Without these costs, you can use more of your income towards
other retirement needs.
Simplified Lifestyle: Retirement often means a slower pace of life. Without the need to
commute, owning a car might become more of a hassle than a convenience.
Public transportation, cycling, ride-sharing services, or walking
can be viable alternatives.
PROS OF KEEPING YOUR CAR
Independence and Convenience:
Having your own car provides the freedom to travel whenever and wherever
you want. This can be crucial for maintaining social connections and
participating in various activities.
Emergency Use: A personal
vehicle can be essential for emergencies, whether it's a sudden health
issue or unexpected travel needs. The peace of mind knowing you have
reliable transportation can be invaluable.
Leisure and Travel: If your
retirement plans include frequent road trips or visits to family and
friends, keeping your car might be the best choice. There’s nothing like
owning your own car that you can take whenever and wherever you
want.
FACTORS TO CONSIDER
Financial Situation: Evaluate
your retirement budget. Calculate the total costs of owning a car,
including depreciation, insurance, maintenance, and fuel. Compare this
with your overall financial plan and see if keeping the car aligns with
your goals.
Health and Mobility: Assess
your current health and mobility. If you foresee potential difficulties in
driving safely in the future, it might be wise to sell the car and explore
other transportation options now.
ALTERNATIVES TO SELLING
Downsizing: Instead of
selling your car, consider downsizing to a more economical and
easier-to-maintain vehicle. This can strike a balance between cost savings
and maintaining independence.
Leasing: For those who still
need a car occasionally, leasing can be a flexible and cost-effective
option. Leasing newer models can also ensure you have the latest safety
features without the long-term commitment of buying.
CONCLUSION
Deciding whether to sell your car when you retire is a personal choice
that depends on your financial situation, lifestyle, and future plans.
Carefully weigh the pros and cons, consider your unique circumstances, and
choose the option that best supports your retirement goals.
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| images via Freepik |
This post is so relevant to what our experience has been. When we lived 2 hours out of Sydney we needed to two very reliable larger SUVs we had. When we returned to Sydney and my husband did not need to do as much driving, we ended up selling the larger SUV to our son, who needed it with his family of 2 tweens and 2 teens did not fit well when he had the kids. For a year we did pretty well. However I found it less than ideal for my mornings out (which I cherish and need) with a sometimes limit on when I needed to be home because my husband needed to go to that very important BIG place whose name starts with B...And there were times I became concerned that having the one car left us a bit stranded when/if anything went wrong. Although I do most of the driving B wanted (and needed) his independence too, so a month ago we became a two car couple again. He is very happy with the comfort of this new version (I have the old one which I love) and because he has spinal issues that is so important. We even had our personal number plates changed. Denyse
ReplyDeleteHi Denyse - we've had the same conversations that I'm sure you've had. I thought we could go down to one car because we rarely use both at the same time, but I still like driving a small zippy car and Ross doesn't. Also a larger car is good for travelling up to see the kids and for holidays. So, we continue to juggle having two and paying the extra rego and insurance for now, but I can see us eventually going down to one car in the years ahead.
DeleteAn interesting topic Leanne, I can see both sides! As we live in a small remote rural town we've had 2 cars for many years and have discussed getting rid of one at various times. We both have different commitments and so far it's been easier just to stay as a two car family. I can go off and visit my mother an hour away, my sister 5 hours away, my closest daughter and grandchildren are 3 hours away, without worrying about my husband's movements and vice versa. We both often ride our bikes to town so we're not always reliant on the car except when the weather is inclement. For us it works out well keeping the two cars at the moment but who knows in the future.
ReplyDeleteHi Deb - we're exactly the same with living away from the city and 20 mins from our bigger shopping/medical precinct. I think we could do without a second car for 90% of the time, but I'm sure that the 10% would be really annoying when it arrived! So we'll stick with our two cars for now too - and see where we are in a few years time. I just wish rego and insurance didn't keep going up in leaps and bounds.
DeleteWe have one older car (2008) which we use to run to the beach & which Grant takes to work as it's being parked in a not very nice area. I use the better car, although don't tend to go too far. Mostly though we bought it for touring. We talk about going down to one car but can't see it happening for quite a while.
ReplyDeleteWe must all be in that in-between stage of two's a little bit much but one's not enough. I wonder if there's an age when it feels right to only have one? Interesting to think about isn't it? And I totally get having a less-lovely car for parking in less-lovely places.
DeleteMalcolm drives a practical car (hybrid), and I have a sporty car. I don't think things will change for a while. I equate owning my own car to independence, and am not giving that up. Sharing would require too much compromise.
ReplyDeleteHi Suzanne - I know what you mean - I like having my car there for whenever I want it, and it's cute and colourful - my husband's is bigger and a plain silver (why is colour so important?) So, yes, it'll be a while before we get serious about selling both and buying something we can compromise on...
DeleteHi, Leanne - Thank you for another highy relevant, thought-provoking post. Throughout our retirement (9 years now), Richard and I have only had one car. As you wisely point out above, this simplifies lifestyle and has a nice financial savings. It is also kinder to the environment and encourages us to walk more places. One car works well for us, but I agree that it is a highly personal choice and would not work for everybody.
ReplyDeleteHi Donna - I'm glad you saw how relevant the conversation is. I'm not sure that I'll ever be ready to not have a car in the family at all, but two cars or one is definitely a part of our conversations and I can see us reducing down to one in the years ahead - especially as I still have my scooter for short trips - and that's so much fun!
DeleteHi Leanne - Yes, like you rightly concluded, it's a personal choice finally. It's all depends on whether you actually NEED two cars or not. If we work things out based on our specific requirements, then it becomes easier to manage.
ReplyDeleteHi Pradeep - that's it exactly, it all comes down to convenience and eventually cost. Is it worth the expense to keep a second car if you rarely use it? I'm sure there's a pivot point when cost outweighs usage and you downsize - we're not quite there yet though...
DeleteAs you and others have pointed out, it's definitely a personal decision and one that probably deserves periodic reconsideration as your circumstances change over time. For now, my husband and I will keep separate cars, but I could see a time in the future where one might suffice.
ReplyDeleteHi Christie - yes, we're the same....two cars work for us now, but in the next decade I see that possibly changing to one car. We just have to find one that we both like - and that's a challenge in itself!
DeleteHi Leanna! Thanks so much for working with us on this blog post, we are glad that your readers have found it helpful and informative. As a person who prefers his bike over his car it is great to hear that your readers are considering alternatives to driving in their later years!
ReplyDeleteHi Allen - I have to admit that I have a motor scooter and my husband has a motorbike and bicycle - so we're two wheelers as well as 4 wheelers. The two wheels may need to be assessed down the track as we age, but for now they're a lot of fun.
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