Cars in Retirement

[Idnar7]

Thanks all for presenting both sides so well. I had DW read also. Probably leaning toward keeping and paying off at this point. It will always be low mileage, so we can always have a decent trade-in value in the future.

 

[gamboolman]

What Harley said

We buy new cars and then we maintain them and drive them for 12 to 15+ years.

The Car Dealer is not your friend...

 

[ExFlyBoy5]

Thanks all for presenting both sides so well. I had DW read also. Probably leaning toward keeping and paying off at this point. It will always be low mileage, so we can always have a decent trade-in value in the future.

Good conclusion!

my '09 car is creeping up on 100K and I have had no issues outside of the normal maintenance which is truly pretty cheap. I *personally* can't see why I would ever lease a car since it's almost NEVER a great financial transactions, but that is just my opinion

 

[brett]

I think that it depends on your wishes and desires.

We spend a fair amount on travel each year. I suspect more than the average retiree. We enjoy it. On the other hand, we have never been car proud as it were. Don't care if our care is not a late model or not. We don't really think about it as long as it is running well and it is not costing an arm and a leg to keep it on the road. Others like a new car more often. To each their own.

 

[flyingaway]

If you don't drive very much, why do you want to lease a car? Let's go to the extreme, if you do not drive at all, do you want to lease a car and put it in your garage?

I might rent cars if I want to drive a lot of miles for vacations, and my own car is no longer reliable (more than 10 years old?).

 

[euro]

+1. The trade in/lease deal is financially better for the dealer (and worse for you) or he wouldn't have offered it. I vote for keeping your car.

Another vote for keeping the car. Im MY experience, there DOES typically come a time when repairs become so significant that it is worth replacing the car, but with THIS low a mileage, you are a long way from that point.

 

[ivinsfan]

You have already incurred the bulk of the depreciation expense. Why give that benefit to someone else?

We drove our Camry for eighteen years prior to giving it to our son. We did not need two vehicles in retirement. Our Accord is ten years old. We have owned it for seven. We expect to drive it for another ten years. We are not willing to play the tradeup game.

Totally a personal decision,but if I have the money I'm not putting me or my DH in an obsolete car without the latest safety features. There is nothing frugal about that in my opinion. At 10 years it's well behind the curve safety wise.

 

[Hyperborea]

A friend of mine bought an old widows car with low mileage and had nothing but problems. Seem they age just as fast if not driven.

There are maintenance items on a car that are affected by the mileage or usage of the vehicle. There are other items that are affected by age and not as much by mileage. These are mostly the rubber and plastic items - so seals, hoses, trim, belts (age and miles), etc. You can do things to minimize this wear but at some point you may need to fix them. Case in point, I just last week replaced the taillight seals (rubber) on my 2005 sports car with only 60K miles because they were leaking.

You are also right that little driving or short trips only can lead to problems. If you are only driving short runs of 5-10 miles or less you should try to get one longer run once a month or at least every few months. The engine and exhaust system need the heat from such a run to get rid of moisture that builds up in various places.

 

[gcgang]

When working, I administered some of the largest lease fleets in the U.S. I also taught dealerships how to sell leasing.

Most leases are done at MSRP--at very high profit margins. And not all leases are created equal since some have acquisition fees and fees when you turn them in. Dealers very often hit a "HOME RUN" when they convert a purchaser into a lessee. Many people know how to negotiate the purchase of an automobile, however very, very few know how to negotiate to get the lowest lease payment.

If you like your GMC Terrain, just keep it.

I've never leased, but I'm thinking of leasing a car for my 16 year old daughter. Other than wanting a 30 month term, I know nothing about negotiating leases. What do I need to know?

 

[FANOFJESUS]

To refinance the car would be a wiser choice than to lease. That way you could get a super low payment. Going the way you are going of course is the best path if it is not to painful.

 

[Out of Steam]

98 Town Car 118K/mi., 96 Cadillac SLS...89K/mi.
Total miles/yr for both cars about 2500.

I'm driving more than that every month, without considering rental cars.

 

[kcowan]

I guess my 93 Explorer with 140k KM original owned since Nov/92 would not be considered safe enough? It has ABS and 2 air bags. It is my weekly driver in Mexico.

 

[Bamaman]

Nothing wrong with leasing if it fits in your budget and you enjoy driving a new car. People on financial forums love to hate on leasing but I lease my car, a very nice German SUV, for a few reasons. Main ones are:

1. I am a car guy and enjoy the latest models, technology, safety
2. I like driving a car under full warranty (haven't paid a repair bill in a long time)
3. I don't drive too many miles so I can lease with the lowest mileage allowance.
4. My total annual car expenses are less than 2% of my income
5. Why tie up my cash in a depreciating asset?

In your situation I wouldn't just jump into another GM product but why not go test drive some other brands? A new Honda CR-V for example which gets GREAT reviews, excellent crash test results, etc.

Many people will always have a car payment. Why not have a lower payment?
Why sink so much $ into the car at the time of a purchase? Sales taxes in many places are 5% to 7%, when leasing taxes is often just on the amount of the base monthly rental payment.
Why should you bet on the direction of the used car market? Especially if the car's a new technology wonder like electric or hybrid.
How are you at selling used cars? Leasing takes the worry and pressure off you since you just walk away at lease end.

 

[dadgad]

Historically I've always paid cash, drove the car 10yrs, then sold or donated it.
Then I discovered plug-in Hybrids and pure-electric vehicles. Game changers. For these silent and emission-free cars, it's all about battery technology and driving distance. The ever-changing technology of these vehicles make leasing the better way to go in most cases. This may not be the case in 10 years as the technology matures. Government rebates are easier when you lease as well.

 

[Fedup]

I guess my 93 Explorer with 140k KM original owned since Nov/92 would not be considered safe enough? It has ABS and 2 air bags. It is my weekly driver in Mexico.

I got you beaten. I have a 97 Explorer with 200k miles original owned, but I only drive it occasionally, 5 miles each way max. But it serves as a backup car. No need for car rental if we need one.

 

[ivinsfan]

I guess my 93 Explorer with 140k KM original owned since Nov/92 would not be considered safe enough? It has ABS and 2 air bags. It is my weekly driver in Mexico.

It's a big car which is good...things like blind spot warning, lane departure warning, side airbags, and adaptive cruise control, back up cameras, have come a long way since 93. As I get older, I'm happy for everything that can give me a safety edge in my car.

 

[Fedup]

That's one of the many reasons why I bought my new SUV. It helps me tremendously in my old age driving. But I don't think it's not safe with the old SUV. Maybe not reliable. My husband won't let the kids drive more than 30 miles each way.

 

[ivinsfan]

That's one of the many reasons why I bought my new SUV. It helps me tremendously in my old age driving. But I don't think it's not safe with the old SUV. Maybe not reliable. My husband won't let the kids drive more than 30 miles each way.

As a member of the funeral serving group at church, I know the caring workers at the local funeral home. One winter day with the road slick ,one of the ladies got involved in an accident. Not her fault, she was driving her little winter "beater" car because of not wanting to get salt and rust on her nice new SUV. The dear lady ended up paralyzed from the waist down. She was beside herself and kept telling people, I think if I had been in my new SUV, I wouldn't be paralyzed. The idea that trying to save her SUV from a little rust could have cost her the use of her legs was really hard for her to accept.

I don't know if her statement was true, but it sure made an impression on me.

Buy the best safest car you can afford and try to hit the sweet spot between constantly changing your vehicles or keeping them for 15-20 years.

 

[Fedup]

That's sad. But we are in California so I think the driving is different. Did she wear a seat belt? I don't drive it often because I like my new SUV, it's newer and feel like being driven by a limo.

 

[ivinsfan]

We do have some really difficult driving conditions here so that might color my feelings about how long to keep a car on the road.I'm sure she was belted in, but felt she would have been more protected in the bigger vehicle.

Any well maintained modern car with good tires is safe on the road....I was just pointing out that sometimes there are other things to consider when thinking if you "need" a new vehicle.

 

[Aerides]

If you like it, keep it. It will last you far longer than any lease given your mileage. Dealers are making calls now to get good CPO's on their lots for summer buyers. If you do deal with them, get something FAR better than the initial offer.

You would have to make a very serious offer to make me come spend any time at a car dealer when I didn't need to get a new car.

 

[oggelbe2015]

I'm waiting until the new & tested (2nd generation) auto-driving options are available.
Then it can even stuff me in the back and haul me down to the graveyard when it's over.

 

[marko]

Not her fault, she was driving her little winter "beater" car because of not wanting to get salt and rust on her nice new SUV. The dear lady ended up paralyzed from the waist down. She was beside herself and kept telling people, I think if I had been in my new SUV, I wouldn't be paralyzed. The idea that trying to save her SUV from a little rust could have cost her the use of her legs was really hard for her to accept.

Funny story: Many years ago our boss' kid was in an accident. He declared "And everyone thought I was crazy giving the keys to a Bentley to a 16 year old! At least he's alive!!"

Out of ear-shot, one of us said "Of course, if the kid was driving a Pinto he'd have walked away as well...Only the boss can make it sound sensible to let a 16 year old drive a $100K car"

 

[iloveyoga]

I think that it depends on your wishes and desires.

We spend a fair amount on travel each year. I suspect more than the average retiree. We enjoy it. On the other hand, we have never been car proud as it were. Don't care if our care is not a late model or not. We don't really think about it as long as it is running well and it is not costing an arm and a leg to keep it on the road. Others like a new car more often. To each their own.

Good point on travel. That is the expense that has been higher for us than I planned. I feel that now is the time to travel, while we are able and active. I bought a 2015 Lexus IS 250 new and I plan to drive it as long as I can. I do love all the new gadgets, so that is a valid point.

 

[athena53]

We spend a fair amount on travel each year. I suspect more than the average retiree. We enjoy it. On the other hand, we have never been car proud as it were. Don't care if our car is not a late model or not. We don't really think about it as long as it is running well and it is not costing an arm and a leg to keep it on the road. Others like a new car more often. To each their own.

My philosophy exactly. At this time last year DH and I owned a 2007 Nissan Altima and a 2012 Sentra, both in good running condition. We bought them used from Enterprise Rental, which I HIGHLY recommend. Very easy transaction. DH died late last year and I sold the older car early this year. I hope the Sentra holds on for a good, long time. New cars get more and more expensive because they're packed with things I don't want or need- built-in GPS, backup cameras, a "black" box that Law Enforcement can tap if I get into an accident. No, thanks.

OTOH, I'm traveling out of the US 3 times this year, although one of those trips is to Toronto, which isn't that exotic.