Car plan in retirement

[jebmke]

retired in Dec 2007 after returning to the US. Bought a 2008 RAV4 and still have it. 105K miles - I should easily get 200K out of it.

 

[jebmke]

When one dies we are going to try out just having one car.

One of the cars or one of you?

 

[Teacher Terry]

Jeb, the car)

 

[Car-Guy]

I've cut way back on my vehicles in retirement... For years I had anywhere from 8 to 12 vehicles at any point in time. (6 to 8 of those were vintage/collectables). I really enjoyed those cars but crawling around/over/under/through them to do the level of maintenance I wanted was getting to much on a regular basis.

So I still like cars (a lot) but I'm down to just 2 daily drivers and no collectables. Garage looks empty. My stock 2019 Jeep is my fun car. (0-60 in 3 sec flat, 1/4 in 11.2) and my 2020 Ram pickup is for everything else. I may buy/trade for a new Jeep next year if they bump the performance level again as the HP car forums are speculating. If not, I'll keep what I have for at least a few more years.

 

[jebmke]

Jeb, the car)

 

[Gumby]

When we retired last June, we had a 2019 Mini Cooper, a 2017 Subaru Forester, and a 2001 BMW Z3. In the year since, we have put <800 miles on the Mini, <7000 on the Forester, and <200 on the Z3.

We certainly won't need a new car in 5 years (maybe never).

 

[Souschef]

We have 2 cars. In 2017, when the crappy Northstar engine in DW's 1998 Cadillac blew its head gasket again, we decided it was time for a new car. Also, our grandson needed a car, so I sold him my 2003 Hyundai with 70K miles on it.
DW got a beautiful Mazda CX-5, and I got a 2016 Hyundai from Enterprise.
I use mine for running around, trips of 10 miles or so. If we go anywhere together, she drives her Mazda.

 

[Animorph]

We had three cars when starting retirement. One was used by the kids or as an emergency backup for our other two cars. It actually came in handy when my car was totaled. I drove it for a year before getting our Tesla Model X (SUV), then sold it. We had planned to sell the third car soon after retiring, but it didn't work out that way.

DW liked the Tesla so she bought a Tesla Model 3. Her old Mini was about 9 years old and seemed to have a lot of maintenance coming if we kept it. Now we both use the Model 3 for local drives and the Model X for long trips.

Two weeks ago we were going to pick up our carryout dinner and the Model 3 had 12V battery problems, so we used the Model X with no hassle. We could get by with one car, but having two seems easier.

The Teslas were an interesting choice. We really enjoy driving them. So much so that we put on about twice the number of miles per year on each of them. The Model X has an excuse since we never took regular long trips before. The Model 3 is just so fun that we find ourselves driving more often and not worrying about distance as much as we used to.

 

[Walt34]

We have always had one car and one pickup truck. For a fortunate few years I also had a motorcycle but sold it due to health issues. (Sniff.) The current pickup will be old enough to vote in a few months but only has a bit over 100k miles on it and everything works so I don't see what a new one would do for me other than some bells 'n whistles that I don't long for.

Yes, a full size 4WD pickup is expensive, big, heavy, a pain to park sometimes and on a good day gets 18 mpg. But in the snow it hasn't been stopped yet and if I'm ever in a wreck I'll probably be glad to be in something bigger and heavier than most of the competition. And if you own a house, they are just so doggone handy to have that for as long as we're in a house I'll want to have a pickup truck.

 

[braumeister]

Even going back long before retirement, I've always bought a new car (for cash) about every five years. I get great enjoyment out of the new gadgets, and it's well worth the cost for me. At the five year point, I've normally put around 150,000 miles on it.

DW tends to go a little longer, about six years on average, but the same story.

 

[Mr._Graybeard]

My strategy has been to buy well-tended old Euro cars and drive them until I can't rely on them anymore. I'm currently into two E34 chassis BMWs, but I think my next step will move into the top-of the-line Lexus, the LS series. Lots of power, lots of luxury, good reliability. I'll probably look for something with 80K miles or so and 6-10 years old.

 

[Mr._Graybeard]

We have always had one car and one pickup truck. For a fortunate few years I also had a motorcycle but sold it due to health issues. (Sniff.) The current pickup will be old enough to vote in a few months but only has a bit over 100k miles on it and everything works so I don't see what a new one would do for me other than some bells 'n whistles that I don't long for.

Yes, a full size 4WD pickup is expensive, big, heavy, a pain to park sometimes and on a good day gets 18 mpg. But in the snow it hasn't been stopped yet and if I'm ever in a wreck I'll probably be glad to be in something bigger and heavier than most of the competition. And if you own a house, they are just so doggone handy to have that for as long as we're in a house I'll want to have a pickup truck.

The big issue for pickups here in the rust belt is ... rust. I've got a nice Ranger FX4 with 125K miles, but my tire shop guy this spring noticed a dime-sized little rust hole in the frame. Beginning of the end.

I've bathed the frame in Fluid Flim, along with the fuel and brake lines. Hope I can stretch this buggy's life to 150K miles. I do love it for what it does. Even the newest models don't measure up, IMO.

 

[Dtail]

We have 2 cars plus DB has one, plus DGF's son has one.
2011 BMW Z4 with 63k miles
2019 Mazda CX5 with 8k miles.
No plans to downsize. Will keep the Z4 until either can't get in/out of the car, or too high maintenance.

 

[W2R]

So what are you planning (if not retired) or what are you doing (if retired)?

I always had one car while working, and the month after I retired I traded it in on a brand new 2009 Toyota Venza that I bought in cash. I figured that way I was set for a while.

It's been over 10 years and I am all ready to buy a new car (even though this one only has 33K miles on it). But the money just sits there because I haven't found a model that appeals to me more than what I already have. I am 72 years old so maybe this car will last longer than I do.

Frank is my SO, who lives next door to me. He had two vehicles when he was working but cut back to one when he retired. He put more than 260K miles on his 2003 Murano (mostly before retirement). So, this year he traded it in on a 2018 Ford Fiesta that was cheap and gets great gas mileage. If either of us has car trouble, we can rely on the other so we don't worry about having just one car (each).

We go places together more often than not. When we do, we take turns driving to make sure both cars get some "exercise".

 

[CardsFan]

I don't understand the desire to downsize to one car, at least in your mid-sixties, as long as you can afford it. When DW goes out, I don't want to be trapped at home. Many things are close, but not really walking distance.

We have a 2012 Pathfinder and a 2012 Altima. I only put 4-5,000 miles per year on the Altima, but want the convenience when she is gone. DW wants to replace the Pathfinder with a Lexus RX350, so that will happen sometime this year.

The additional fixed cost to retain the Altima is around $1,000/yr (insurance, gas and PP tax). Tires every 4-5 years adds another $100/year. Add oil changes, wipers, batteries, etc, and the all in cost is still less than $1,200/year

In a few years I will replace it, but haven't decided with what.

 

[aja8888]

We are in our mid-70's and have two cars, although DW doesn't drive anymore due to her medical issues. She could drive, if in a pinch. I do all the local area driving and that amounts to about 8,000 miles per year.

We have a 2019 Dodge Grand Caravan as the main car, and a 2005 Mustang Convertible as my daily driver. Both are low mile cars (35,000 and 64,000 respectively).

I take one driving trip per year (solo) from Texas to Connecticut and back to visit my family and two close friends along the way, and that adds 4,000 miles to the annual driving. When I plan that trip, I ask my SIL stay with DW while I am gone in case there is a problem.

I suspect we will keep the van for the foreseeable future as I can equip it with handicap devices if DW becomes wheelchair bound. The Mustang could go, but I like it , and a new Corvette is not in the budget at the moment.

 

[swakyaby]

I’m not sure we really have a car plan. We’ve always intended to be a 2-car couple so no one feels trapped at home while the other is out. I have a 2003 Lexus hard-top convertible I still enjoy, and we have a 2014 Tesla S with unlimited supercharging. I think we’ll keep the electric car for as long as the battery holds out, because the unlimited supercharging is a very nice feature.

 

[Bamaman]

Staging out automobiles prior to retirement is a smart thing to do. There's nothing worse than getting hit with having to replace too many assets at one time. Five years into retirement, every thing I had went bad and had to be replaced. I bought a new Waverunner, a Bennington tritoon boat, a fifth wheel trailer and a new Ford Explorer.

Don't be like me.

I still have a 17 year old 3/4 ton diesel truck, a 2 year old Camry Hybrid and a month old F150. The Explorer has been traded, and my XK8 Jaguar convertible and 2008 IS250 have been taken off the road for now. Insurance is what's eating me alive.

 

[Sunset]

I don't understand the desire to downsize to one car, at least in your mid-sixties, as long as you can afford it. When DW goes out, I don't want to be trapped at home. Many things are close, but not really walking distance.

We have a 2012 Pathfinder and a 2012 Altima. I only put 4-5,000 miles per year on the Altima, but want the convenience when she is gone. DW wants to replace the Pathfinder with a Lexus RX350, so that will happen sometime this year.

The additional fixed cost to retain the Altima is around $1,000/yr (insurance, gas and PP tax). Tires every 4-5 years adds another $100/year. Add oil changes, wipers, batteries, etc, and the all in cost is still less than $1,200/year

...t.

For us, there are a few factors that mean we could go to 1 car

• It's pretty rare (like almost never) that one of us has to go out when the other already left.
• I have a bike, so I could pedal and get some exercise if I desperately needed to rent a movie at redbox, etc.
• I could phone for a taxi, would be about $5 each way to shopping (1 mile).
• I could Uber.
• I could walk to the shopping, I did it once a few years ago to pick up my car that was in for repairs, as a form of exercise.

The $1,200 in one year that having an extra car sitting around would cost will/could for us, pay for all the taxi trips needed for the next 10 years.

If I was short of cash, it would be a way to save some $$.

 

[DrRoy]

We went from two to one, and it has rarely been an issue. Will probably replace every 6-7 years, down from 9-10. Love the extra space in the garage too.

 

[Rex]

Began ER 18 months ago with two cars....After the Civic just sat in the driveway, recently convinced DW to go down to 1 car. She objected primarily on "because we've always had 2 cars".

Two cars were a waste for us and it's so much more efficient to just have 1 car. Has not been an issue thus far and I don't see how that would change.

It's a 2014 Acura MDX...which she loves....and the plan is to buy a new vehicle every 10 years.

We saved a few $$$ on insurance and registration....but not that much and we all know Civic's run until the wheels fall off so there was never a large repair bill. We gave it to one of the adult kids. It's nice to only deal with one car and enjoy the added savings.

 

[mrfeh]

Our retirement budget has $20K allotted for a vehicle purchase every 5 years.

 

[corn18]

Thanks everyone! It looks like $30k every 5 years seems like a reasonable plan for now.

I am curious about insurance. I am 54 living in OH and a typical car seems to run $600 / year to insure for the coverage I like. Will this change significantly as we get older? Other than fewer miles.

 

[braumeister]

I am curious about insurance. I am 54 living in OH and a typical car seems to run $600 / year to insure for the coverage I like. Will this change significantly as we get older? Other than fewer miles.

Two things will almost certainly affect your rates.
First, you'll change the usage category on your vehicle. For example, from "to/from work/school" to "pleasure use only". That should drop your rate noticeably.

Second is your annual mileage. Each insurer has their own numbers. Some might figure the average is 12,000 miles for a commuter, while others might say it's higher or lower. You can probably ask your insurer what their bands are, and you could easily drop your rate by shifting to a lower number of annual miles.

My insurer lets me play with all the parameters, including coverages, on their website, so I can see exactly the effect of individual changes. Yours may have a similar feature.

 

[corn18]

My insurer lets me play with all the parameters, including coverages, on their website, so I can see exactly the effect of individual changes. Yours may have a similar feature.

USAA lets me fiddle with everything except my age.