4 Affordable, Reliable Cars for Retirees Living Only on Social Security
Written by
James Holbach
Edited by
Amber Barkley
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Living on a fixed income can be challenging, but it’s an unavoidable reality for retirees.
It requires careful budgeting and planning to ensure you live within your means and end up in a financial predicament. Those fortunate enough to have retirement savings or a pension will enjoy some wiggle room — but those who have to rely on Social Security benefits to fund their retirement will have to exercise caution and discipline.
Major expenses like a vehicle are obviously vital to get right. While affordability is the primary concern, focusing solely on the purchase price and neglecting factors like reliability and safety can land you in hot water later. Having to deal with an unexpected repair expense, or even worse, an injury requiring medical care, can be extremely difficult to manage on a fixed income.
To help you make the right choice, here are four vehicles — both new and used — experts say are affordable and reliable enough for retirees living only on Social Security.
Subaru Legacy
The Legacy is a mid-size sedan with an MSRP starting at $24,895 for the 2024 model year.
Subaru is probably best known for offering all-wheel drive as a standard. The Legacy also offers several safety features, like automatic emergency braking and lane-keep assist. It’s also surprisingly roomy, making it a solid choice for those planning for passengers frequently.
Scott Lieberman, founder of Touchdown Money, specializes in helping people make good financial decisions. “My mom is retired and living on a fixed income, and she enjoys driving her Subaru Legacy. She likes that all-wheel drive comes standard, because she lives in an area where winters can get wet and snowy,” Lieberman said.
Honda Civic (Used)
Consistently ranked as one of the top compact cars by Kelley Blue Book, even a new Civic is fairly affordable, but buying one used offers the potential for even greater value for your dollar. The Civic is one of those cars that does everything well — decent space, good fuel efficiency and fun to drive.
“I would highly recommend the 2016 or 2017 Honda Civic. These models have high reliability ratings, excellent gas mileage and initial MSRPs within a reasonable range that have depreciated over time. On average, they can be found at around $10,000 to $14,000, depending on mileage and condition,” said John Lin, owner of JB Motor Works.
Lexus ES (Used)
You might be surprised to see a luxury vehicle on this list, even used. Full disclosure: You’ll have to go farther back in the model year to make this a feasible option, but if you’re willing, you can easily pay less than $15,000 for a spacious and comfortable luxe ride. It also runs on regular 87-octane gasoline, so owning the ES won’t force you to buy more expensive fuel.
Lin pointed specifically to the 2012 model. “They offer premium features and comfort. Plus, being a few years old, they’ve mostly gone through their major depreciation, making them a good blend of affordability and luxury.”
Toyota Corolla
The Corolla and the Civic are often viewed as more or less equivalent. While the Corolla is not quite as highly regarded, its starting MSRP is $2,000 less than the Civic for the 2024 model year, making it a more affordable option if you want to buy new.
Patryk Doornebos, owner of Car Triple, said that the Corolla’s “long-standing reputation for durability and fuel efficiency makes it a top contender for retirees seeking reliability and affordability. The recent models offer advanced safety features and modern conveniences, providing a comfortable and secure driving experience.”
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