I Live on Social Security: 5 Ways I Keep My Monthly Car Budget Under $300
Written by
Lydia Kibet
Edited by
Zuri Anderson
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For many retirees living on Social Security, every expense requires careful planning, including the cost of owning a car. From gas to insurance, maintenance, and repairs, car expenses can quickly add up, eating into your fixed income.
GOBankingRates spoke with Frank W., a retired truck driver from Wyoming who shared how he keeps his monthly car budget under $300.
Drive a Paid-Off Old Car
One of the major car expenses for Americans after a mortgage is monthly car payments. Fortunately, Franks drives an old, fully paid-off Toyota Highlander. He only has to worry about gas, maintenance, and repair costs.
“My car may be a little old, but it still runs fine. It’s cheap to maintain, and it gets me where I want to go,” he said.
Frank thinks he made the best decision not to buy a new car in retirement, which he would probably still be making monthly payments on to date.
“Sticking to my old car has helped me free up money for other important things like groceries and utility bills,” the retiree noted.
Prioritizing Routine Maintenance
Skipping routine car maintenance, even tiny ones that may seem unnecessary doesn’t save money. It often delays bigger, more expensive problems. That’s why Frank prioritizes routine maintenance.
“An oil change might cost me $40, but a new engine will set me back a few thousand dollars,” he said.
You can avoid costly repairs down the road by handling small maintenance issues on time.
DIY Maintenance and Repairs
Frank isn’t a professional mechanic, but after driving trucks for decades, he has learned to do simple car repairs that can save him money.
“Whenever possible, I take care of small repairs. I change air filters, replace light bulbs and keep battery terminals clean,” the retiree noted. “These are simple repairs that would cost me double at a repair shop.”
Finding Ways To Keep Insurance Premiums Low
Insurance is a big part of the overall car ownership. And for anyone on a fixed income like Frank, you’ll want to keep your premiums as low as possible. Many people are over-insured without even realizing it.
“I bundle up policies and take advantage of senior discounts to keep my premiums low,” he suggested.
Frank also regularly compares premiums offered by different providers to ensure he’s not overpaying.
Alternative Transportation Options
Even though Frank owns a reliable car, he sometimes walks or bikes for shorter trips, like going to the grocery store.
“There are days when the weather is so good, and I walk to shop for groceries. It doesn’t just keep my monthly car expenses low, but it’s also a bit of exercise, too,” said Frank.
He opts for public transportation for longer trips, where gas costs will be high.
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