7 Signs Boomers Should Sell Their Extra Vehicle in Retirement
Written by
Elizabeth Constantineau, AI Editor
Edited by
Elizabeth Constantineau, CFHC™
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Retirement marks a new chapter in life, often calling for a reassessment of needs and assets. For many baby boomers, this can mean deciding whether to keep or sell an extra vehicle. Here are some key signs that it might be time to let go of that additional car.
Sign 1: Reduced Driving Needs
As you enter retirement, your daily driving needs often decrease. If you’re no longer commuting to work or transporting family members regularly, maintaining more than one vehicle may no longer be necessary. Consider your current lifestyle and how often you actually use each vehicle. If one sits idle most of the time, it might be a sign to sell.
Sign 2: Rising Maintenance Costs
Older vehicles often require more maintenance, and the costs can add up quickly. Evaluate the expenses associated with keeping an extra car, including repairs, insurance and registration. If these costs are cutting into your retirement savings, selling the vehicle can alleviate financial pressure.
Sign 3: Limited Space
In retirement, you might downsize your living space, which can mean less room for parking or storing extra vehicles. If you find yourself struggling with space or paying for additional storage, it might be more practical to sell the extra car.
Sign 4: Environmental Considerations
With growing environmental consciousness, you might want to consider the ecological impact of maintaining multiple vehicles. If environmental sustainability is important to you, reducing the number of cars you own can be a meaningful decision.
Sign 5: Shift in Lifestyle Priorities
Retirement often brings a shift in priorities and interests. You may find that travel, hobbies or spending time with family becomes more important than owning multiple cars. Selling an extra vehicle can free up funds to invest in experiences that enrich your retirement years.
Sign 6: Public Transportation Accessibility
If you live in an area with reliable public transportation, or if you’ve moved to a retirement community with transport services, the need for multiple cars diminishes. Utilizing these services can be both cost-effective and convenient, making it easier to part with an extra vehicle.
Sign 7: Financial Rebalancing
Selling an extra car can provide a lump sum of money that can be used to bolster your retirement savings or fund other goals. Assess your financial objectives and consider if the proceeds from the sale could be better utilized elsewhere.
Final Take
Deciding to sell an extra vehicle in retirement is a personal choice that depends on individual circumstances. It’s about balancing practicality with financial savvy and lifestyle preferences. Before making a decision, consult with a financial advisor to understand how this choice fits into your overall retirement plan.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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