5 Reliable Used Cars Retirees Can Afford in 2024

New vehicles aren’t cheap, which is probably why you don’t want one. The good news is, that there’s no shortage of reliable used cars that can fit even a tight retirement budget.

As of January 2024, the average price of a new car was $47,401, according to Kelly Blue Book. Much more affordable, the average list price of a used car that same month was $25,328.

Buying a used vehicle can save you a lot of money. This is especially true if you’re looking for a more affordable vehicle, so you can pay for it in cash.

In the fourth quarter of 2023, the average interest rate for a new vehicle was 7.2%, according to Experian. Notably higher, the average interest rate for used cars was 10.4%.

If you think you’ll have to settle for a new vehicle that’s just okay, you’re mistaken, There’s no shortage of used cars and SUVs that still offer an incredible value.

Many people trade vehicles every few years, just because they want a new one. You can benefit from this by turning a well-maintained, low-mileage vehicle from a reliable manufacturer into an incredible new-to-you buy.

KBB offers many lists highlighting the best used vehicles for your money. Here’s a look at five car options that retirees on a variety of budgets can afford.

• Price: Under $20,000

Ranked number one on KBB’s list of “Best Used Compact SUVs under $20,000”, the 2019 Honda CR-V is touted for its flexible and functional interior cabin. It’s also easy to drive, equipped with standard safety features, and has several lively engine options.

KBB recommended searching for LX and EX models in this price range that offer handy features like LED headlights, smartphone integration and optional all-wheel drive.

• Price: Under $10,000

One of the best-selling vehicles in the U.S., 2012 models of the Toyota RAV4 are still going strong. Even in this price range, you can still score a host of features, such as car-like handling, a comfortable cabin, available all-wheel drive, V6 power, and stow-away third-row seats, according to KBB.

Choose from a variety of models, including Sport and Limited — KBB noted the latter offers a bit more luxury.

• Price: Under $20,000

Topping KBB’s list of “Best Cars Under $20,000,” the 2019 Honda Accord won the site’s “Five-Year Cost to Own Award” in a midsize category when new. As for features, this spacious sedan is well-equipped, comfortable and easy to drive.

Another option, if you’d rather have a 48-miles-per-gallon-combined hybrid, KBB recommended seeking out EX-L and Touring 2017 models, which will keep you within the under $20,000 budget.

• Price: Under $20,000

Praised by KBB as “safe, comfortable, reliable, spacious and feature-packed,” the 2015 Toyota Highlander is great for families. This can make it a fantastic choice if you’re regularly driving grandkids around.

To stay within this price point, KBB advised seeking out the XLE trim level. If you’d prefer the hybrid version of this SUV, shop for a 2014 model.

• Price: Under $10,000(5)

If you’re looking for a compact car, the 2012 Honda Civic could be a great choice. Described by KBB as “an excellent example of a practical, reliable, efficient and well-equipped car for the money,” this sedan offers incredible value.

To get the most for your money, KBB advised looking for lower-mileage EX models.