# Cars in Retirement - what did you do?



## Mechman (30 Jun 2022)

I'm a few years away, 6 minimum from packing it it, but need to start planning.

My weakness in life has always been a nice car, and yes, I know, its not sensible at all, but we all have vices. Maybe I need a cheaper one. 

Still, I need to plan for the big drop and less ability to keep that nice car habit going.

I used change my cars regularly, 2 to 3 years, and would have had them financed, over the past few years, that moved to various PCP deals ranging from 0% to 4.9%, depending on the brand. 

I'm thinking that I need to get out of PCP for when i retire, and hence my question. What do most people do when they retire, hold on to an existing car? Buy a new one? Is it utterly foolish to contemplate having a rolling monthly car payment when retired, or do most buy outright and run a car for years as mileage would be so low? 

Or is it all dependent on income. 

Interested to hear what others do or have done.


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## Conan (30 Jun 2022)

Well, retirement income might certainly influence what type of car you might buy when retired. If you are retiring with an Occupational Pension, then typically you will get a tax free lump sum on retirement. This might finance a new car. 
Sometimes retirees might be giving up a “Company car” when they retire and it might be the first time they have had to buy a car in some years (unless they negotiate the purchase of the Company car). 
You might also consider the likely mileage in retirement- no travel to/for work, maybe only social/leisure travel. Maybe by the time you get to retirement, the EV’s might be a better option.


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## Grizzly (30 Jun 2022)

We have two cars. A complete waste of money. It's like....which one will we drive today.  We really only need one car. We have free public transport. We can walk to a selection of supermarkets.  Absolutely no need for two cars.  I drive a 2018 car, low mileage. I will keep it until it falls apart.


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## Black Sheep (30 Jun 2022)

We also have two cars and have been retired for many years. No need for the two but which of us is going to give up the car. Mine is the classic runabout for the runs to the shops, meet up with friends, hairdresser etc and I do a bit of voluntary work. The other car is used mainly for longer trips (siblings are scattered all over the country, extreme north to south west). OH also does some voluntary work and the emergency school run.

I would hate to have to give the freedom of my car and at present I can manage to indulge my passion and will keep this car till it drops.
As for the second one we may have to consider a replacement, not new but perhaps a good second and that market is not looking good at the moment.

 Retirement is all about doing the things you didn't or couldn't do during your working life so if your car is your passion you'll find the funds


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## garbanzo (30 Jun 2022)

Car and a moped anyone ?


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## ClubMan (1 Jul 2022)

Is this thread only for retired people who are married or have a partner?


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## Mechman (1 Jul 2022)

One car here at the moment, and my wife drives it During the week.

I have a company commercial which I drive during the week, and I get a go in our collective car at the weekends!


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## Mechman (1 Jul 2022)

Maybe I should have a more sensible, cheaper car now, as I rarely get a chance to drive it, mainly for an hour at weekends, wife’s not fussed, she would happily drive something smaller, bank the savings, and splash out one last time when im retiring, supported by the lump sum, well my DC lump sum, which isnt guaranteed.

i wonder do people typically use the lump sum to fun cash car purchases?


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## Clamball (1 Jul 2022)

I was thinking we will drop to one car on retirement.  We live in Cork suburbs and I drive north of the city for work and other half drives south of the city for work.  I have the good car & he has the older one as I drive further and he is inclined to carry around messy boat parts in his.  

I would think that in retirement if one was gone with the car the other could take a taxi or bus if they wanted to head out.  It costs say €5K a year to run a car (maybe more) with depreciation, saving for a replacement, tax, tolls, insurance, NCT, services, and fuel.   You could take a lot of taxi rides for that.


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## NoRegretsCoyote (1 Jul 2022)

Mechman said:


> Interested to hear what others do or have done.


Use your lump sum and buy a really nice car that you think will last you for 10+ years.


My dad is in his late 60s and is dithering over buying a new car. I told him to spend once and spend big - it might be the last car he buys because at 80 he needs an annual renewal of his license via GP.


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## Mechman (1 Jul 2022)

NoRegretsCoyote said:


> Use your lump sum and buy a really nice car that you think will last you for 10+ years.
> 
> 
> My dad is in his late 60s and is dithering over buying a new car. I told him to spend once and spend big - it might be the last car he buys because at 80 he needs an annual renewal of his license via GP.


That’s what I’m thinking might be a sensible plan. Maybe cut back now to a cheaper car when I don’t have time to drive it, reduce the costs, bank the saving and splash out when retiring.


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## Pinoy adventure (1 Jul 2022)

In some cases when one retires they get a bus pass,which can save you a fair bit of money.
It covers trains also.


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## Black Sheep (1 Jul 2022)

Where's the rule that says you must have an annual review of your licence at 80?  Many of my friends are well into their 80's and getting their *3* year licences on passing their medical. 

We all get our bus passes on reaching 66 as long as we are residents of the state. 
You can also apply for your Northern Ireland pass at the same age. It covers the applicant only (not the spouse/partner)


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## Firefly (1 Jul 2022)

Would you consider something like a 4 year old Lexus? They're nice cars and Toyotas under the hood, so maybe the best of both worlds for someone about to retire?


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## PaddyBloggit (1 Jul 2022)

Black Sheep said:


> Where's the rule that says you must have an annual review of your licence at 80? Many of my friends are well into their 80's and getting their *3* year licences on passing their medical.



75 or over => 3 year licence or 1 year licence (subject to certification of fitness to drive by your doctor)

https://www.ndls.ie/about/licence-terms.html#period-of-driving-licence


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## odyssey06 (1 Jul 2022)

Also note in relation to insurance I think age *loadings *start to kick in in your early 80s.


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## PMU (1 Jul 2022)

If you have 6 years to go to retirement, start saving now for your new car, so you will have all / most of the purchase price saved for when you retire. If you find it difficult to adjust to retirement you might want to consider leaving a major decision like buying a new car off for a year or two.

As I have always held onto to cars for 10 years at least, I bought something like what I have always bought, i.e. boring, reliable, sturdy, German, etc., and for cash, i.e. no finance deals. Also as the EU intends to prohibit the sale of new ICE cars from 2035, it is unlikely manufacturers will invest in petrol/diesel technology with a limited lifespan, so you won’t see much improvement if you continue to buy a new model every two/thee years.

I wouldn’t buy a ‘cheap’ car; buy what you are used to or equivalent and look after it.


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## Harfang (1 Jul 2022)

Guess it depends on what you plan to do. Plenty appear to retire and spend lots of time travelling or indeed spend time living in sunny Spain etc. little point in a fancy car left sitting idle in Ireland then .


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## lady17 (2 Jul 2022)

When you get to pension age you will get free travel for the bus and train. Once you get to 75 you will get a 3 or  1 year licence (subject to certification of fitness to drive by your doctor).  That includes your sight and the forms your doctor fills re sight give exact criteria which unless you fit into you won't be issued a licence.  I know people who lost their licence at this age.  I can also say that at 80 car insurance goes up and it's worse if you have a car of 10 years plus.  I know a lady who needed to have a car at that age due to living in a rural area and even her insurance broker found it hard to get a quote for her and she had no points or car accidents.


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## RedmondC (8 Jul 2022)

I have been considering this as well. I am retiring next year at 53 and heading to Spain using cash savings and early drawdown. Crunching the numbers I am dropping the car and going to locate near good public transport links. Saves Depreciation, Diesel, Tax, Insurance and Services.


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## garbanzo (8 Jul 2022)

RedmondC said:


> I have been considering this as well. I am retiring next year at 53 and heading to Spain using cash savings and early drawdown. Crunching the numbers I am dropping the car and going to locate near good public transport links. Saves Depreciation, Diesel, Tax, Insurance and Services.


Hey RedmondC

Care to share how you are managing to retire at only 53?

g


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## Harfang (9 Jul 2022)

I had plans to retire to Spain. Was there a few weeks back. No thanks , not the south anyways. The heat would kill you ! Perhaps the north. Galicia etc. wonder where you plan on going RedmondC. ?


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## Paul O Mahoney (9 Jul 2022)

Harfang said:


> I had plans to retire to Spain. Was there a few weeks back. No thanks , not the south anyways. The heat would kill you ! Perhaps the north. Galicia etc. wonder where you plan on going RedmondC. ?


Galicia is also a Celtic nation was there a few years ago, no tourists, no hubbub,  just life in such a simple way I began to wonder why we have so much crap in our lives.

Back to cars , today we visited a Toyota dealership to inquire about her last car, and we are not quite yet retired, but its close,  apparently they can't sell a car now as they have reached their quota of hybrids and will know in September what qty they'll get to sell beginning in Jan-23.

Driving home she said " maybe I'll hang onto this" it's a Jag e-pace with 45000kms and a rattle, a new edition rattle the car is 2018...

Even having €800 a month net , car Allowance theres very little to buy.


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## SlugBreath (10 Jul 2022)

My good wife drives a Peugeot 206....year 2003.....an absolutely lovely car......we drive it everywhere. Small, good boot, easy to park.  We intend keeping this car until it falls apart.  At that stage will will probably start driving the other ornament in the garden a bit more.


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## FANTANA (10 Jul 2022)

Just keep in mind your no claims bonus is only valid for two years. So best to swap insurance between your partner within this period. This will require change of ownership on the car to do and may be an issue on a three year pcp and if a new car having more owners will affect its value.


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## RedmondC (4 Aug 2022)

garbanzo said:


> Hey RedmondC
> 
> Care to share how you are managing to retire at only 53?
> 
> g


Hi 
I have paid into a pension since 18 private sector and always been a saver. Own house no loans no kids. Life’s short work done. Now enjoy health willing. (Oh also enjoyed life while working lol)


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## LDFerguson (4 Aug 2022)

RedmondC said:


> Hi
> I have paid into a pension since 18 private sector and always been a saver. Own house no loans no kids. Life’s short work done. Now enjoy health willing. (Oh also enjoyed life while working lol)



Hats off to you having the presence of mind to contribute to a pension since age 18.  I was involuntarily enrolled in a pension scheme at age 21 and I can (hazily) remember that I didn't give two hoots about it at the time as the notion that I would ever be of age to retire seemed so far in the future that it was up there with science fiction stories.  (When I was older I did appreciate having been shoved into it at 21 which is why I'm a supporter of the auto-enrolment project as an idea.)


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## Look ahead (4 Aug 2022)

my plan is to move into the city in next few years, be within walking distance of shops, hospital, train and bus stations etc, sell the car and never again drive.


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## RedmondC (4 Aug 2022)

Look ahead said:


> my plan is to move into the city in next few years, be within walking distance of shops, hospital, train and bus stations etc, sell the car and never again drive.


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## TRS30 (5 Aug 2022)

LDFerguson said:


> Hats off to you having the presence of mind to contribute to a pension since age 18.  I was involuntarily enrolled in a pension scheme at age 21 and I can (hazily) remember that I didn't give two hoots about it at the time as the notion that I would ever be of age to retire seemed so far in the future that it was up there with science fiction stories.  (When I was older I did appreciate having been shoved into it at 21 which is why I'm a supporter of the auto-enrolment project as an idea.)



I jointed my company one at 26 when started my first 'real' job after trying other industries, travelling etc post college. Best bit of financial advise my Dad ever gave me.


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## LDFerguson (5 Aug 2022)

TRS30 said:


> I jointed my company one at 26 when started my first 'real' job after trying other industries, travelling etc post college. Best bit of financial advise my Dad ever gave me.



Dads.  Bless them.    Only earlier this year I had a meeting with a young lady aged 23 who was enrolling in her employer's pension scheme, which we're the brokers for.  Like you, her first proper job after college.  She told me that her Dad had been pressing her to join as soon as she was eligible.  I recommended that she do three things: -


Thank her Dad from me for the excellent advice.
Get used to the discipline of having a pension contribution deducted from salary and continue it in any future job she might have.  
Remember to thank her Dad again if he's still around in about 30 years when she has experience of the magic of compound interest.


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## huskerdu (5 Aug 2022)

LDFerguson said:


> Dads.  Bless them.    Only earlier this year I had a meeting with a young lady aged 23 who was enrolling in her employer's pension scheme, which we're the brokers for.  Like you, her first proper job after college.  She told me that her Dad had been pressing her to join as soon as she was eligible.  I recommended that she do three things: -
> 
> 
> Thank her Dad from me for the excellent advice.
> ...


I also had a similar Dad and 30 years later, I am very grateful for his insistence on pensions as Sunday dinner conversation


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## LDFerguson (5 Aug 2022)

Look ahead said:


> my plan is to move into the city in next few years, be within walking distance of shops, hospital, train and bus stations etc, sell the car and never again drive.



I'll be the polar opposite.  To butcher the old NRA slogan, you can take my car keys off me when you prise them from my cold, dead hands.  I actually like driving and more importantly I really value the sense of freedom and independence that having a car gives me.  I might not actually use the car for a few days ... but I could.  I think I'd only give it up if we had a really good and reliable public transport system.  (My earlier statement is an exaggeration, by the way.  I know that at some point, if I make it that far I'll probably be so doddery that I'd be a menace on the roads and some poor relative will have the unenviable task of convincing me to get rid of the car in the interests of public safety.  But I wouldn't dream of it until then.)


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## Black Sheep (5 Aug 2022)

My grandson (18 year old) started his first job to day. As he was going out I said to him "next Friday will be your first payment into your pension". No Gran came the reply I need to be three years with the company before I can become a member.  
At least he read the manual, he may even take heed!!!
Meantime he can't wait for his full driving licence


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## Slim (5 Aug 2022)

It took us 3 years after retirement to get around to it but we sold older car, for more than we expected due to demand for 2nd hand cars, and traded bigger car against an EV. It's mildly inconvenient but we plan around the one vehicle. We live outside of town and public transport is not realistic or convenient.


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