How to Save Money on Your Dream Car in Retirement

As you get closer to retirement, you’re probably feeling excited about all the time you’re going to have on your hands to do the things you’ve always wanted to do. Some people spend their retirement traveling to all the different places they’ve wanted to see for decades, while others decide that now’s the time to turn their house into the dream home they’ve always longed for.

Others might use some of their hard-earned retirement fund to purchase something that they’ve always wanted, like a dream car. If that sounds like you, the good news is that buying your dream car doesn’t have to cut into your retirement fund as much as you might think. There are many ways to save money and still get the car of your dreams when you retire.

Consider Used Cars

Your dream car doesn’t have to be brand new. In fact, much of the time, purchasing a brand new car isn’t worth it as it loses so much value the moment you drive it away from the showroom.

If you have a certain car in mind, the chances are that you will find several great used options.  Many of the options might not have many miles on them or have even been driven much, but you won’t need to pay the additional cost that comes with the privilege of getting a brand new vehicle.

Shop Around for Insurance

Most people enjoy much cheaper car insurance as they get older and incur more driving experience. However, no matter what age you are, the auto insurance costs for some cars, particularly luxury cars, are often more expensive than average. Spend some time shopping around and researching different insurance companies to find one that works for your budget.

AARP Auto Insurance, for example, is exclusively for AARP members and is designed for the over 50 years of age, and focuses on helping you get the best deal when it comes to insuring your car. Check out the AARP auto Insurance website to determine how much you could be saving when you insure your dream retirement car.

Share Insurance

You may also save some money on insuring your dream car by sharing your policy with your spouse or another family member.

If you live in a two-car household and that is unlikely to change as you enter retirement, multi-car auto insurance plans can be your friend when it comes to driving the cost down. Rather than paying for two separate insurance policies for each car, you pay for one policy that covers both of them.

Get Good Breakdown Cover

The idea of your dream car breaking down probably fills you with a little bit of dread. And depending on the car that you’ve decided to get for yourself, a breakdown could be a very costly endeavor.

It’s always best to be prepared for these situations so that in the event of something going wrong, you don’t have to reach so deep into your pockets. Some auto repair shops and garages also offer membership schemes which you can join to enjoy discounts and free services when needed, which might be worth looking into.

Learn Some DIY Skills

If you’ve always had a keen interest in cars but never had the time to get around to learning more about how they work and how to fix them yourself, retirement could be the perfect opportunity to get stuck in. And if you’ve decided that you want to invest in your dream car as you retire, knowing how to do some odd jobs on it – and do them well – can save you a great deal of money over time.

You can save by understanding how to do your own oil and filter changes, for example, instead of taking it to the mechanic. And the good news is that there’s so much free information now available online to help you better know your way around any car.

Know Your Budget

When you enter retirement, it’s more important than ever to be aware of your budget – especially if you’re mainly going to be living off your retirement fund. If you’re lucky enough to have pension payments that you receive monthly or own a business that’s still paying you even though you’ve retired from working, budgeting is still important.

Figuring out how much you can comfortably spend on your dream car is crucial, and don’t just consider the upfront cost of buying the vehicle. It’s also worth noting the amount of money that you can expect to spend over time on upkeep and repairs. If you’re opting for a very luxurious type of car, the chances are that you’ll be required to stay up-to-date on often costly services if you want to ensure that your vehicle continues running as smoothly as possible. So, make sure that you can easily afford the ongoing cost before you make the investment.

Will You Use It?

It’s worth considering if you’re going to get as much use out of your new car as you would like. And, does the car that you have in mind align with the other plans that you have for retirement? If you want to travel the country on a massive road trip and are considering investing in a caravan, for example, then you will need a vehicle that lends itself well to towing.

The last thing that you want is to get your dream car only to find that it holds you back from the other things that you want and had planned for your retirement. Thankfully, many of us have a few different cars in mind when it comes to getting our dream car. And if your budget stretches that far, nothing is stopping you from getting more than one.

Retirement is often a time in life where people can finally start going for what they really want. And you’ve worked hard for your dream car, so why not treat yourself to it? However, the long-term costs of running your dream car can quickly add up, so be sure to make the right decision and consider ways to save over time.