I’m a Retired Boomer: 4 Car-Related Costs I Eliminated To Save Thousands
Written by
Lydia Kibet
Edited by
Rebekah Evans
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Retirement comes with freedom but also more responsibility when it comes to money. For many retirees, car ownership is one of those sneaky expenses that eat into their savings.
GOBankingRates spoke with Scott Larson, retiree consultant at ClearCaptions, who shared how he re-evaluated his household car situation and uncovered several car-related costs he eliminated to save thousands.
“When I retired, our household car situation was one of the first adjustments that we made. We downsized to one car and that in itself felt like immediate money back in my pocket,” he said. Below are four expenses Larson cut after downsizing to one car.
Also here’s how to live without a car in retirement to save money.
Gas Costs
Gas costs can drain a retiree’s budget. A second vehicle sitting unused most of the time still requires occasional driving to maintain the engine and battery, meaning you’re paying for gas even when the car isn’t serving a practical purpose.
For Larson, downsizing to one car means less money spent on gas and more money in the pocket. “I felt strongly about selling my vehicle, as it was a nice little nest egg to tuck away for emergency funds.”
Parking Permits and Fees
Many apartment complexes and senior living communities charge monthly or annual fees for extra parking spots. Larson was able to cancel one of these recurring charges after selling his second car.
Insurance Policy on Second Car
Downsizing to one car meant that Larson no longer needed to pay for two insurance policies. That decision alone saved him hundreds of dollars yearly. Auto insurance premiums vary widely depending on location, coverage and vehicle type, so having fewer vehicles means fewer policies to maintain.
Maintenance Costs
The most unpredictable expenses associated with vehicle ownership are maintenance and repairs. Even well-maintained cars require regular oil changes and unexpected repairs can cost hundreds to thousands of dollars.
“With so much in the air for retirees and benefits right now, finding ways to trim back expenses is a great idea,” Larson said. “Every dollar we don’t spend is another dollar that can be spent on independent living.”
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