You might be ready to cruise into retirement, but one decision you won’t want to put on autopilot is what you should do with your car.
Some adults, no longer saddled with a daily work commute, drive substantially less than they ever have. This could very well affect the number of vehicles they need, how much insurance coverage they carry, and more.
However, other retirees actually use their vehicles more. For instance, some people pick up a side gig that involves a heavier driving regimen; others decide they want to hit the open road recreationally.
If you’re in your post-career years (or are about to be), and you’re staring at your cars wondering “Now what?” I’ve got you covered. Let’s look at what retirees should do with their cars to best match their lifestyle.
5 Car Considerations for Your Golden Years
Many people see retirement as a time to slow down and relax. But others plan to be just as busy, but with a focus on travel, hobbies, or volunteering.
Point being: Not everyone has the same vision for retirement.
That’s OK. Because no matter how you foresee your retirement going, most people have many of the same questions about transportation once they call it a career. Here, I’ll try to cover several of the most popular considerations about how to handle your vehicles in retirement.
1. Reevaluate the Number of Vehicles You Need
Barbara and Robert are a retired couple with three vehicles:
- A compact car that Robert used to commute to his workplace.
- An SUV that Barbara used to commute to her workplace.
- A truck they used for the occasional DIY job at home, such as picking up landscaping materials, as well as for hauling a couple kayaks to the lake.
Before retirement, each of the three cars had a clear purpose. But in retirement, Robert and Barbara rarely drove anywhere on their own.
Now that they don’t have separate commutes, it’s pretty obvious they could sell a car, enjoy a nice influx of cash, and still have enough vehicles to accomplish whatever they need. What they decide to sell would depend on their expected lifestyle. Here are two scenarios:
- Robert and Barbara decide they’ll spend a lot of time visiting family on long road trips. They’re also going to keep kayaking, and they’ll keep doing a few DIY home projects every year. They keep the SUV for longer road trips, they keep the truck for carrying things, and they sell the compact car, which has the least utility.
- Robert and Barbara live within a five-minute drive of all their family members. They won’t travel much. But they will keep kayaking and doing DIY projects. They keep the truck for carrying things, they keep the compact car as their daily driver, and they sell the SUV, which ironically has the least utility.
Think about your own situation. How many cars do you own? Do you foresee yourself needing all of those vehicles in retirement? Could you get by with fewer?
Remember: Selling a vehicle will give you cash immediately and likely save you money down the road. However, keeping just one car (especially if it’s older) could leave you in the lurch any time you need repairs.
Also, you can always keep a similar number of vehicles but downgrade to more modest cars to reduce payments, insurance, maintenance, and/or gas expenses.
Related: Downsizing in Retirement? 10 Tips to Follow
2. Continue Car Maintenance
If you find that you’re driving less often in retirement, you might not prioritize regular car maintenance the way you used to when you had a daily commute. After all, fewer miles generally means less wear and tear, stretching out the time between necessary routine maintenance.
That said, don’t let routine maintenance slip altogether.
Many car maintenance tasks save you money over time. For example, getting your tires rotated can help your tires wear evenly, which makes them last longer before you need new tires. Not to mention, failing to properly maintain your vehicle can be downright dangerous—you don’t want to put your life in the hands of shoddy brakes or faltering automatic steering.
Related: The 4% Rule Is Outdated. This One Might Be Better.
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3. Reevaluate Insurance Needs
Another way you can tighten up your retirement budget through transportation costs is auto insurance.
For instance, I’m a remote worker who doesn’t drive very much, and as a result, I receive a low-mileage discount from my car insurance provider. If your mileage has dropped (or you expect it to) significantly during retirement, it’s worth asking about whether your insurer offers similar price reductions.
Some retirees also increase their deductibles in exchange for lower premium payments, but that’s a change you should only make if you’re comfortable with the risk.
Does your partner no longer drive? You might consider taking them off your insurance altogether.
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4. Create a New Income Stream
Vehicles can be financial sinkholes. They cost money to buy, use, and maintain.
But they can also make you a little money to offset those costs.
Driving for rideshare, food, or package delivery services can be flexible side hustles for retirees. Alternatively, you don’t need to work at all, but could rent out your vehicle with a peer-to-peer car rental service, such as Turo or Getaround. Some people even get paid to put ads on their cars and simply use them as usual.
An extra income stream during retirement never hurts.
Related: 10 Costs You Can Negotiate to Save Money
5. Use It for Road Trips
Travel can keep seniors active and social. Some research even shows it can even reduce the risk of death. Unfortunately, travel can be expensive for seniors when it involves long flights and travel insurance.
Done strategically, though, road trips can be much more affordable.
How comfortable you are with taking your car on the road will come down to its age and wear and tear. But generally speaking, if you’ve kept up with maintenance, there’s little to worry about from packing on a few more miles. So consider taking some time to enjoy the open road and explore the country.
Related: You May Want to Skip These Popular Retirement Rules
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