Selling, buying and driving a car as an older adult

Let these questions drive your decisions.

As an older adult, you may have already adjusted your finances to accommodate your retirement years. But have you considered what growing older might mean in terms of your car? Here are few topics to consider.

Does your family need more than one car?
When you and your spouse are working, it can be a great convenience for each of you to have a car. But when you retire, you might want to consider downsizing to one family car. If you consistently leave one car in the driveway or garage, this might be a good idea for you. You can sell one car and use the profits to bolster your retirement savings. This will also save you money on car insurance, repairs and maintenance.

What if I need to buy a car?
If you need to buy a car as an older adult, think about what kind of car will be best for you, as well as your options for financing it. Buying a reliable car is a good idea regardless of your financial situation, but if you are living on a fixed income, it is especially important. Repairs and maintenance can cost a great deal of money and it can be difficult to budget for this in your retirement years.

Consider how you will pay for the car. If you have enough money in savings, you may want pay in cash. This can save you money on the interest and finance charges associated with car loans. Sometimes, it is difficult for older adults to get loans, though some lenders do give more importance to credit profiles than age.

How is your driving record?
As you grow older, you will probably have to face the reality of changes in your health. These changes can affect your driving, as well as your insurance rates. Have you gotten in an accident because of poor reaction time? Does your vision make it difficult to drive? If so, your insurance rates may be high. It is a good idea to see your physician and your eye doctor frequently so you can catch and treat problems that could affect your driving before they occur.

Some local senior centers and insurance companies also offer defensive driving classes. You may want to look into insurance policies that offer incentives for taking classes that can improve your driving skills. This will save you money and help you stay safe behind the wheel of your car.

As you grow older, consider how many cars your family needs, how to pay for a car if you need a new one, and ways to stay safe while driving.