Cars in Retirement - what did you do?

M

Mechman

Registered User
Messages
44
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.
 
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.
 
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.
 
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
 
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!
 
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?
 
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.
 
Mechman said:
Interested to hear what others do or have done.
Click to expand...
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.
 
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.
Click to expand...
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.
 
In some cases when one retires they get a bus pass,which can save you a fair bit of money.
It covers trains also.
 
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)
 
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?
 
Also note in relation to insurance I think age loadings start to kick in in your early 80s.
 
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.
 
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 .
 
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.
 
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.
 
You must log in or register to reply here.
Back
Top