Everybody looks forward to the years of their life when they are able to retire. But, preparing for these years is not always an easy task. Saving enough money to live comfortably can be hard for a lot of people. That is why you will need to learn to downsize and budget carefully. Above all, retirees need to make smart choices when it comes to major purchases. One major purchase many retirees face is the need to buy a new car. It is vital to look at how this purchase will impact your finances and your future. So, we have put together some car budget tips for retirees.
Buy a Used Car Instead of a New Car
Buying a used car opposed to a new car reaps a variety of benefits. The advantages will assure you that buying a used car is best financial choice you can make as a retiree. When it comes to car budget tips for retirees, buying a used car is at the top of the list. And, here is why.
A used car is going to be less expensive than a new car. The average payment on a new car is $503 per month. If you buy a used car from an independent dealership, the average payment is only $351 per month. By going with a used car, you can save an average of $152 per month. This adds up to a savings of $9,000 over the course of a five year loan. This money can be helpful to pay for costs during your retirement.
Used cars don’t only just have affordable purchase prices, they also have better overall value. The reason you can get an amazing used car at a great price is because new cars lose their value instantly. The second you drive a new car off of the lot it loses about 10% of its value and will lose anywhere from 20% to as much as 50% in the first year alone. With a used car, there’s no immediate dip in the value of your car the minute you drive off the lot. Used cars depreciate at a slower rate, so the value will hold up better over time compared to a new car. This is just another reason why buying a used car is a must for car budget tips for retirees.
Another advantage of used car prices are that they allow you to upgrade to a nicer model at a better deal than it would have cost buying a new car. Extra features like sun-roof and navigation systems drive a new car price up. But, when you find them on a used car you will pay far less for them than the original owner did. You can end up with a used car that has more features for less money.
Buy a Used Car with Good Gas Mileage
The fuel efficiency of the car you drive can make a huge difference in what you will pay at the pump. And, this can add up significantly over time. Buying a used car that is 10 miles per gallon more fuel efficient can save you $10,000 over the lifetime that you own the car. Keep that in mind when you are shopping for a used car and need to budget for retirement. Make sure you check out our list of cars with the best and worst mileage, so you know what to look for and what to avoid.
As you can see, buying a used car has many benefits and can help you save some money during retirement without having to sacrifice quality. And making sure it has good fuel economy will help you save even more. These are by far the best car budget tips for retirees. Please view our wide selection of quality used cars on our website. Or, come visit in person at our used car dealership in Miami. We will help you find the perfect fuel efficient used car to drive throughout your retirement years. Prado Auto Sales is conveniently located at 7300 SW 8th Street, Miami, FL 33144.
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