Saving on car expenses

As you get older, you may need to make decisions about what your car means to your finances.

If you have already established your career, your family and your finances, you probably have a great deal of experience buying a car. But now that your kids are out of the house and you are approaching retirement, it’s a good time to think about your car-related expenses. Here are a few things to consider when making car decisions in your 50s and 60s.

How many cars do you need?
If both you and your spouse are retired, you may want to ask yourself if each of you really need your own car. If you have two cars, you might want to consider selling one and using the profits to pad your retirement money. Downsizing to one car can save you money on maintenance and repairs, as well as on car insurance. If you consistently use one car and leave the other in the driveway or garage, it might be a good idea to sell one of them as your family matures.

What is the best kind of car for you?
Only you can decide what kind of car you want, but there are a few things to keep in mind. Is the car you have now a remnant of the carpool years? In other words, do you need a large car or would now be a good time to downsize, say from a van to a sedan? Getting a smaller car can save you money on gas since they generally have better gas mileage.

Also, as you approach retirement age and the prospect of living on a fixed income, you may want a car that will last a number of years. It may be a good idea to start researching and test driving cars that are known for their reliability so you can find a car that will last.

What about car insurance?
To save money on car-related expenses, you may also want to reevaluate your car insurance. You can start by doing some research and coming up with figures from your insurance provider’s competition. You can then present the numbers to your current insurance provider to see if they can match or beat their competitors. You can also see if there are any new incentives for longtime policy holders or drivers with good driving records.

Remember, as you get closer to retirement, many of your needs will evolve. This includes how many and what kind of cars you need. Carefully consider these questions and you may be able to save on car expenses in the future.