Car plan in retirement

[Coco]

We retired at 49. Pre-retirement we owned 3 cars. For sure, we were apprehensive about going to 1 car after retirement and thought hard about our real needs.

But, when we looked at how little we actually used the car on a daily basis vs. cost to maintain, it was a no-brainer for us. So, now in retirement, we are a 1 car family (no kids).

In the last 5 years, we never had a situation where we BOTH needed use of the car at the same time. Should that situation arise (the need), then there is Uber or Lyft, but it never happened.

For retirement planning, we budgeted 18K every 6 years (adjusted for inflation) until we turned 84. But that was revised up to 21k every six years after considering the total cost of closing on a car. Maybe will go up again in the future. We typically keep our cars for much longer time frame though.

For sure, we are not "car guys"!

 

[eytonxav]

I have a 2018 Audi RS5 with only 2000 mi. DW and I also share a 2014 Acura RDX with 34K miles. May keep the Audi another year or two and then trade both cars in on another SUV. We really only need one car.

 

[GravitySucks]

Well the plan was a 2 or 3 year old car every 6 years or so. When the Caddy died I wanted a Camry or Accord. The new Camry was a much better value than a 3 year old one, so I bought that in November 2013. No point in getting rid of it as it runs like new and other than brakes, tires, and battery never needed any work. 130k miles so far.
Then I bought an RV to play with. Sold the RV and bought an older Miata last year.
Looking for a good deal on a FJ Cruiser or four door pick up and trailer now. So with luck I'll be up to 3 cars for one person by next year.

 

[ShokWaveRider]

Lease 1 car for us, allocate a max of $6k a year for the lease car. Currently spending $4,800. New car every 3 years need it or not, no maintenance, GAP or Accident (Bad CarFax impeding resale value) concerns, no car worries at all.

 

[DougJohnson]

Would love to go down to 2 cars now but my wife likes her convertible. Maybe it stays until we don't want to pay for BMW maintainability anymore. Only has 24k miles on it.

My wife has a 2000 BMW M Roadster that she loves more than me. It has about 65K miles on it. We've found an excellent independent mechanic who is both cheaper and more trustworthy than the dealer. Keeping it running well only costs about $700 a year. But the car only gets about 2,000 miles a year.

I would think you could drive the Z4 nearly forever.

Our other cars are a 1995 Ford Explorer that needs a $500 repair every other year or so. It gets less than a 1,000 miles a year. The main driver is a 2015 BMW 640 with about 40,000 miles. It takes about $700 a year in maintenance. With Covid, I've bought one tank of gas in four months.

Your car plan sounds pretty conservative to me. Cars last a long time these days.

-- Doug

 

[imnontrad]

My plan is to buy a different car when my current one no longer meets my needs. That could be 5 years (on year 4 now) or longer. But not a set schedule.
I love the idea of buying used and letting someone else pay the depreciation. But I think when older, buying new with all the latest traffic and safety features is a good plan.
Bu many I know in retirement find that just having one car is enough, especially when the cost of insurance starts climbing as they age.
Another thing I consider when buying cars is the habits of the millionaires in "The Millionaire Next Door" - none of them drove a luxury vehicle. And if you gave me a choice between a luxury vehicle or an "ordinary" one (both having the features I felt I needed) plus 30K (or more) to invest (not even figuring in the extra insurance/maintenance costs), I know which one I would go for in a heartbeat. My self worth is not dictated by the car that I drive.

 

[Dynaflash]

I never buy new. I use them until they are worn out. Just me and wife but here is the list
2008 Lexus SUV 175k miles
2012 Nissan pick up 45k miles
1957 Chevy 210 hot rod
1967 Chevy Camaro Convertible
1930 Ford Model A hot rod
Small pull behind camper

 

[2177V]

2001 BMW 330i for my wife who is still working.

2000 Chevy Astro, 2013 Piaggio BV350 motorcycle and a 1998 Bayliner Cuddy boat with a sleep-in cabin and potty toilet for myself since I have retired.

The motorcycle and my boat are my retirement toys. Astro Van can be converted into a sleep-in van with a full size bed and a potty toilet. My boat and van also have a portable hot water shower.

Everything I own is super reliable and geared toward my retirement. Since the cars are old, my car insurance for the BMW and Astro is $70 a month.

I would buy a new Astro in a heartbeat because it is so practical for pulling my boat, hauling stuff from home depot, camping and moving. Alas, they do not make Astro anymore so I am driving it into the ground. With 235,000 miles it is still running strong. I drive my motorcycle more than my van.

When you retire, your transportation needs changes since you are no longer commuting. Your future cars should be geared toward enhancing your retirement life.

 

[Doc0]

I get rid of my cars around 60K miles. People can still finance a car with 60K miles and most new cars have 3 or 4 year warranties and usually not much of significance goes bad before 60K. If you look at residual value at 60K miles and about 3-4 years old the value is pretty good. Longer or more miles and residual value starts falling off. I always buy something like a high end accord, which are luxurious enough and easy to sell especially with 60K miles. So if you pay 35K new and can get 18K 4 years later and 2% inflation you need 20K every 4 years or 5K/yr budgeted for a new car of the same model. If you have 2 cars 10K/yr and a new car every 2 years (alternating your car and the wife's car) works. 3/4 of the time both cars are under warranty.

 

[FIREarly]

Have you thought of buying a Tesla and not buying a new car every 5 years but getting over the air updates for the life of your car.

PS major help to the ecosystem and you can drive in HOV!

PPS no more buying gas, most maintenance, and 1,000 free charging miles at Supercharger for every referral.

 

[Trat]

We have 5 cars, an older Jeep in Surprise AZ (eventual snowbirds), and here in Central Oregon We have a 2017 F150, 2008 Benz C350, 1999 F350 7.3, and a 2020 F350 King Ranch. I’m almost 51, we are between 4-6 years out from retirement (I can leave in 4 but like the money). Benz and my Ford 7.3 are both for sale now, starting to downsize. I wouldn’t want to go down to one rig here though, we each need something to go play in. The vehicle down south is just out of convenience, so we can fly down and drive on vacation, pre-retirement.

 

[RetiredAtThirty-eight]

Bought 2 Tesla's in '18. Didn't want to deal with car repairs or gas stations.

Good plan! That's exactly what me and my wife did (two Model 3's) and they are far better than we dreamed! Cost of ownership is super low and you get a car faster than most muscle cars. No smells, vibration, super fun to drive or hang-out in. Doesn't drip oil or need oil and filter changes. Every morning it's full and raring to go. The time savings are considerable when you have two cars that never need anything! After 2 1/2 years we wonder why we didn't do it sooner with the original Model S. Answer: Simply because we didn't know any better.

When I go skiing in a winter powder storm I defrost it from the last chairlift ride (using my cell phone) and when I ski down 10 minutes later it's all defrosted and warmed up so I don't get chilled when I cool off from all the activity. Gas cars take forever to start putting out significant heat in those conditions but the Model 3 is like "You want heat?" "OK, how about right now!" Gas savings are nice even with gas at $2.50 gallon.

We still have an F-150 but it never moves anymore. It needs an oil change for the summer months even though we haven't driven it but 200 miles. We will be replacing it with an all-electric truck when available.

 

[RetiredAtThirty-eight]

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.

One of our Model 3's has free Supercharging (mine) and my wifes does not. I think it's over-rated because the only time we use it if we go out of town on a trip longer than 4-5 hours of driving. That's about 3 times a year for us and then it's nice but, guess what? We still tend to take my wifes car because it's setup for her dog!

I drive right by a Supercharger a couple of times/week and never stop because it's so cheap and easy to charge overnight at home. Yes, I could save $3 or $4 bucks here or there by stopping for a few minutes but it's not worth it. So I think free lifetime supercharging is over-rated unless you are often on multi-state trips. Even then, it's just a benefit of saving the Supercharging fees which are still far less than the gas would cost. There is zero convenience benefit.

 

[LifeIs]

Hi! We are looking at retirement next year @ age 55. Currently have 3 cars (no loans):

2020 BMW X3 M40i
2015 Chevy 2500HD
2015 BMW Z4

Don't plan on driving a lot in retirement. but who knows. We pay cash and keep them until they cost too much.

My current plan has us buying a new car every 5 years for $30k net. Not BMWs. Thinks Honda Accord or CRV. This continues until age 80 when we buy our last car.

I have no idea if this is a good plan or a bad plan. It's just the current plan. Would love to go down to 2 cars now but my wife likes her convertible. Maybe it stays until we don't want to pay for BMW maintainability anymore. Only has 24k miles on it. Wouldn't mind stretching each car to 15 years vs 10. But that doesn't sound like us.

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

Thanks!

Corn

I’m thinking a pickup and hybrid sedan going with Honda line would be the best flexibility and long term cheapest.

 

[FIREd]

I currently have a ~€40K car, which I plan on replacing every 8-10 years. I drive about 12,000 miles a year in retirement and a car is a must at this time, as my life is quite active.

But I live in a walkable neighborhood and pretty much everything I need is within walking distance (3 grocery stores, 1 big box store, my bank, the post office, the butcher, the bakery, the pharmacy, an urgent care facility, my barber, shops, restaurants, etc...). Furthermore, I just have to walk 100ft to access our efficient public transport system in case I need to travel through the rest our metro area (pop. ~1M). It also gives me access to the train station and the airport. So, if I didn't go out of town as often as I do, a car would be completely optional. If I become more sedentary later in life, I might do away with the car completely.

 

[ShokWaveRider]

We just purchased a new SUV, we still had our older lease car in the garage also. I like to be prepared and always lease another car with one or 2 months overlap. We ended up sending the original lease car back 2 months early as there seemed no point keeping it in the garage doing nothing, especially in today's Covid world. So one car for us works well.

I still have a niggly yearning for another sports car, but cannot really justify a garage queen that "may" get driven once a month or even less. This is hard as up until 3 years ago I always had a "Toy" car to play with. Funnily enough I miss having one, but NOT driving one. Not sure why that is. I now just go look at my Neighbor, 4 doors down McLaren 720s, (Also in his garage not doing much) if I get serious sports car withdrawal.

 

[meleana]

We have a 2013 and 2016 SUV’s ( we ate in New England).. As we downsized to a very small house with a very small driveway and Very small single car garage, at some point we might eliminate having 2 cars. But right now we like the freedom of each of us being able to go somewhere when we want to Go our separate ways and also knowing if one car is down we have the use of the other car until it’s repaired.

We are not into cars in terms of status or needing new all the time. Plan going forward is if we do need a car at some point in the future it will be a used car.

 

[RetiredAtThirty-eight]

I’m thinking a pickup and hybrid sedan going with Honda line would be the best flexibility and long term cheapest.

It wasn't long ago I thought a hybrid made sense due to the supposed disadvantages of electric vehicles.

What I learned when my wife bought a Model 3 shocked me! Everything I knew about EV's was wrong! EV's technology has advanced leaps and bounds to the point it's absolutely foolish to put a gas tank and engine in a car! The pure electric vehicle is simpler, cheaper and more convenient to own, has better performance and needs much less maintenance.

Disclaimer: I've never owned a non-Tesla EV so I'm not sure how I would manage the occasional road trips we like to take without the Supercharger network. Due to Tesla's charge network it may still be the only viable electric replacement for a hybrid or gasoline car.

 

[jcretire77]

We have three, but need two. DW and I have schedules/interests that don't allow one car. Well into retirement year number three we have put very few miles on any of the cars.

I also thought that we would be changing out cars every five years and in fact test drove a couple last year. Yes we could afford one, but why? She loves her mini, we have a 2013 Audi Q5 that maybe gets 4K miles per year and I drive her old CRV to the golf club.

Retirement, for us, has not been as expensive as I had thought it would be.

 

[Big_Hitter]

We have 4 but could probably use 2 now that I retired.

We could just keep my wife's SUV and the old pickup for chores but I like my other two rods; I just don't drive them often.

 

[Markola]

We have a 2006 SAAB 9.3 sedan and a 2016 Acura MDX SUV. We’re newly semi-FIRED and probably won’t need the SAAB, which costs about $1,200/ year just to sit there and look pretty.

 

[Clone]

We currently have an SUV and a pickup. Both are relatively new, and in recent years the number of miles we drive each year have dropped significantly. But the distribution is certainly bi-modal. We are either driving around town, or we are road tripping 500 miles one-way or 1400 miles one way.

My plan with the pickup is to maintain it and continue to use it for farming purposes. I could get by without a pickup, as my brother now has 4 in the fleet and I could use one of those when needed. But, I like how it drives, I can haul a bed full of stuff back and forth, and pull a heavy trailer if needed. I don't know if I will ever buy another one though.

The SUV is the 1400 mile trip vehicle plus the grocery getter. It is much easier to get around in parking lots, and DW greatly prefers it to my pickup. We bought it when there was a big sale on them a couple years ago, and will possibly trade it up to a more premium version in a couple years. But I prefer to trade around 80k miles, and it will take a few years to get there.

All this talk about electric vehicles has stimulated the brain cells. I am seriously considering an electric vehicle as a 2nd vehicle (therefore 3rd total) at our winter place. I think the lithium battery technology plus the new magnets (thus motors) have made a quantum shift in propulsion technology. Our second vehicle usage would be short trips around town, no towing, mostly 1 or two people. Much like a great majority of folks. With the improvements in technology, and the social acceptance (and pressure), I really believe that our next vehicle will be a pure electric. And with a purchase price of around a third of a typical SUV, a new electric golf cart just seems to really make sense.

 

[Dave in VA]

We have been retired for 6 years, still have the 2 cars we retired with:

2010 Lexus RX350 and a 2012 Audi A6.

Have been considering our next car, but both of these are still running great. My last Audi maintenance was super expensive, probably would not buy another one now.

I get the convertible thing, had a Z3 for several years, and regret selling it to this day. May get another one!

 

[Music Lover]

When I go skiing in a winter powder storm I defrost it from the last chairlift ride (using my cell phone) and when I ski down 10 minutes later it's all defrosted and warmed up so I don't get chilled when I cool off from all the activity. Gas cars take forever to start putting out significant heat in those conditions but the Model 3 is like "You want heat?" "OK, how about right now!" Gas savings are nice even with gas at $2.50 gallon.

I have a "regular" car and live in a place where -35 is common. It's never taken longer than 10 minutes for any vehicle I've owned to warm up when it's that cold. At 0F it only takes 3 or 4 minutes.

 

[friar1610]

Just as before retirement - one "family car" that I mainly drive and we use for road trips. Current version is a 2015 Volvo XC-70 (wagon) bought used in 2017. Also a mid-sized sedan that my wife primarily drives. 2011 currently Buick Regal bought new. Try to get at least 10 years out of any car. I'm 75 and spouse will soon be 74 so not sure if/when our driving might have to be curtailed. I might be willing to try one car for a while when Buick dies but no sign of that yet.