8 Types of Cars That Could Drain Your Retirement Savings
Written by
David Nadelle
Edited by
Maria Concepcion
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As the United States’ continues to age faster than ever, all automakers are creating vehicles that address accessibility, visibility, safety and comfort issues that will extend the driving lives of people who require assisted driving features and helpful tech.
Everyone has the freedom to support the lifestyle they deserve in retirement fully. For many Americans, that means splashing out on a high-priced car when they stop working. As a senior, there’s no reason you shouldn’t spend your money on a luxury liner with all the added-value features if you have the means.
However, with initial costs, financing, depreciation, insurance, fuel and assorted parking and ticketing fees so expensive, even the average, employed driver needs to ensure they can cover the financial responsibilities of car ownership. Buying a car requires comprehensive planning for expected and unforeseen expenses for individuals on fixed incomes.
Cars are the number one wealth killer for most people, but expensive brands will drain your savings more quickly than others. While some seniors may be willing to take on higher maintenance costs to acquire a high-performance vehicle, if you want to avoid paying excessively for repairs and maintenance appointments, experts warn you to stay away from European luxury vehicles and, to a lesser extent, American-made pickups.
Maintenance-Heavy Cars You’ll Want To Avoid Buying in Retirement
8. Audi
- 10-Year Maintenance Cost: $13,222
Of course, owning a luxury vehicle can be costly. On its list of the 10 most expensive automobile brands to maintain, Consumer Reports (CR) posts that Subaru is the only reasonably priced brand among the high-end brands. Audi, perhaps surprisingly, ranks fourth. The average annual maintenance and repair cost for Audi vehicles, according to RepairPal, is $987, which is well above the average of $652 across all auto brands.
7. Volvo
- 10-Year Maintenance Cost: $13,513
Volvo’s most expensive model to repair, the XC90, ranks as the 60th most expensive luxury car model to maintain over time, per CarEdge. Still, the brand is considered the eighth and sixth most expensive brand to own during its first 10 years of service, according to CarEdge and CR, respectively. An XC90 will cost you about $12,359 for maintenance and repairs over its first decade, which beats the industry average for luxury SUV models by $3,355.
6. Mercedes-Benz
- 10-Year Maintenance Cost: $15,986
Balancing advanced technology with luxury, Mercedes-Benz is recognized for its high-quality materials and powerful engines. Unfortunately, the brand has a reputation for unreliability and their models are notoriously expensive to repair. According to Steven Elek, Consumer Reports’ program leader for auto data analytics, “Over 10 years, Mercedes-Benz models are more than double the cost to maintain and repair as those from Lincoln.”
5. Ram
- 10-Year Maintenance Cost: $16,802
Americans love pickups because they offer a great combination of performance, comfort and utility. Trucks are driven rough, however, and command frequent visits to the repair shop over their lifetimes. Ram trucks are by far the most expensive and popular vehicle to maintain. Ram owns the top seven individual model spots in CarEdge’s rankings and its top four models are $5,000 more expensive to maintain over 10 years than the most expensive luxury brand models.
4. Jaguar
- 10-Year Maintenance Cost: $17,636
Jaguar has a small market share in the U.S., and its exclusivity (and unreliability) as a brand results in some extra costs for parts and specialist servicing. There is a 40.54% chance that a Jaguar will require a major repair during its first 10 years of ownership. This is 5.45% worse than the other auto manufacturers in this segment that CarEdge studied. Additionally, Jaguar models average around $17,636 for maintenance costs during that time ($5,592 more than the industry average).
3. BMW
- 10-Year Maintenance Cost: $19,312
There are more BMW models in CarEdge’s top 15 costliest cars to maintain list than any other brand. BMWs require expensive maintenance of $968 on average annually, according to RepairPal and the brand ranks 30th out of 32 car brands in RepairPal’s reliability study. If you own any X-series vehicles, expect to pay at least $17,516 (for the X1) to $18,900 (for the X6 M) in repairs over 10 years.
2. Land Rover
- 10-Year Maintenance Cost: $18,569
According to CarEdge, Land Rovers are slightly less expensive to maintain and repair than BMWs over five years and significantly less over 10 years. However, Consumer Reports claims that purchasing a Land Rover may result in higher maintenance and repair costs than choosing ANY other type of vehicle, partly due to its expensive, exclusive parts. The brand has an estimated six- to 10-year cost of at least $15,000 and its popular Range Rover trims are its worst offenders.
1. Porsche
- 10-Year Maintenance Cost: $22,075
Overall, Porsches have a 51.17% likelihood of having a significant repair within the first 10 years of ownership, which is 16.08% higher than the other automakers in their segment, according to CarEdge. The Cayenne and the Macan are the two most expensive models to maintain, with the larger and more powerful Cayenne costing a little more to buy new and to repair over time ($20,552 over 10 years vs. $20,137).
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