I’m Retired and Regret Buying a New Car — Here’s Why
Written by
Lydia Kibet
Edited by
Jenna Klaverweiden
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Buying a new car is one common way retirees reward themselves after decades of hard work. GOBankingRates spoke with Mark A., a retired construction worker who purchased a new Chevrolet Suburban after driving a secondhand Toyota Corolla for years.
Looking back, Mark thinks he made a huge mistake buying a new car — here’s why.
The False Promise of Peace of Mind
Mark thought buying a new car would give him the peace of mind he needed because it would be reliable and stress-free. However, things didn’t go as expected.
From keeping up with payments to maintenance costs, the car didn’t give Mark the peace of mind he wanted in his golden years. “I thought purchasing a new Chevy meant I wouldn’t have to worry about breakdowns and regular maintenance,” he said.
Reduced Retirement Budget
Most retirees don’t think about how buying a new car could impact their finances beyond making car payments. Several additional costs come with this purchase — from insurance to maintenance, repairs and gas.
“I’m burning through my retirement savings faster than I ever imagined,” Mark said.
Lifestyle Incompatibility
When you’re retired, your lifestyle changes. If you enjoyed driving before, that could change. Or you may not need to drive as much in general — meaning a new car purchase might not be worth it.
Mark has been driving the car for three years since he retired at 62, but his lifestyle has changed. He no longer enjoys driving for long hours. “When I drive, I’m just going to the grocery store or meeting family and friends,” he said.
The costly features and performance of a new car now feel unnecessary for Mark’s occasional errands and trips. “I spent thousands of dollars on a car I barely drive now,” he said.
Other Alternatives Might Be Better
Once you’ve decided to do something, nothing can stop you. This was the case for Mark. He didn’t think about other alternatives that could have saved him money, and he now regrets it.
“I wish I had considered options like leasing the car instead of purchasing a new one,” Mark said. He said he feels ride-sharing would have met his current transportation needs without emptying his wallet.
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