8 Signs Boomers Should Sell Their Extra Vehicle in Retirement

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Retirement can be seen as a time to simplify and focus on what truly matters. Considering that the average retirement age is reportedly around 62, most baby boomers can look forward to long retirements — retirements they’ll need to fund, perhaps for two or more decades.

If you’re a baby boomer with an extra car, you may want to consider selling it to improve your cash flow and reduce expenses during your golden years. Here are signs that it may be time to sell your extra vehicle. 

Limited Use

One of the primary reasons to sell that extra car is if it’s not being used regularly. If you find the vehicle sitting idle for weeks or even months, it’s a clear indication that you can manage with fewer cars.

Start tracking how often you’re using your extra car and see if you can realistically get by without having it around. For example, if both you and your spouse are retired and you tend to go places together, you may only need one car. 

Rising Maintenance Costs

If your extra vehicle is an older car, you can expect it to need more frequent maintenance. At an average price of $542.32 per repair, according to Kelley Blue Book, frequent trips to the mechanic can quickly add up, making it more economical to sell or donate the vehicle.

Calculate the annual cost of maintaining all your vehicles. If the expense of keeping the extra car outweighs its benefits, it might be time to consider getting rid of it.

Downsizing

Many retirees choose to downsize their homes, which often means less garage or parking space. An extra car can become a burden in this situation. If space is tight or storage costs are adding up, this may be another key reason to sell your extra car.

Parking Issues

Parking can be a hassle, especially in urban areas or communities with strict parking regulations. An additional car can only increase these issues, leading to unnecessary stress.

Consider the parking situation in your area. Are you constantly juggling cars to comply with parking rules? If so, reducing the number of vehicles might bring some relief.

Insurance Costs

Insurance is a significant ongoing expense for car owners, with the average annual policy costing $2,068, according to a study by U.S. News & World Report. Maintaining insurance for multiple vehicles can be costly, especially if one car is rarely used.

Shop around and compare quotes for car insurance, but don’t’ be afraid to cut your losses and get rid of your extra car if you prefer to avoid the added insurance expense.

Reduced Mobility

With age, driving may become less frequent due to reduced mobility or health concerns. An extra car might not be essential if you’re not driving as much. Reflect on your current and anticipated driving habits. If you foresee a significant decrease in driving, it might be more practical to sell the extra car.

Environmental Concerns

Owning multiple cars contributes to environmental degradation. Reducing the number of vehicles can lower your carbon footprint, benefiting the environment.

Financial Flexibility

Selling an extra car can provide additional funds for other aspects of retirement, such as travel, hobbies or healthcare expenses.

Evaluate your financial goals and needs. The proceeds from selling a car can be redirected to more meaningful pursuits in your retirement.

Final Thoughts

If any of these signs resonate with you, it might be time to sell that extra car. Simplifying your life and freeing up resources can make retirement even more enjoyable. It’s all about balancing your current needs and goals while still aiming to manage your finances wisely during your retired years.

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