Buying a car can be a laborious, overwhelming process for anyone, but when you're retired, you're even less interested in the hassle and haggling of car shopping. Nonetheless, you face countless decisions when you're in need of a new vehicle, one of which is whether to invest a significant amount of money in something brand-new or opt for a pre owned model. For many people, used vehicles are preferable; however, for retirees, pre owned is definitely the way to go. Here are just five reasons why:
1. You Lose Less Money Through Depreciation
If you're like most Americans, you worry that you don't have enough money to get you through retirement. This national crisis means people are worried about affording health care and medicine, even food and housing; thus, paying money for something that simply loses a lot of value as soon as you become the owner of it simply doesn't make sense.
Depreciation is a major concern for car buyers, but because you have many financial priorities other than having the fanciest wheels, you want the sensible alternative to such an instantaneous and huge loss, which is buying pre owned.
2. A Pre Owned Vehicle Should Mean Lower Insurance Rates
Another way buying a used car in retirement will keep more money in your pocket is with lower insurance rates. Rates are traditionally much higher when insuring a brand new vehicle, even if you have a spotless driving record. If you do happen to have a few blemishes in your driver history, though, rates on a new car could be astronomical.
3. You Might Want To Pay Cash To Avoid Interest
Paying cash can give you leverage when buying a car, meaning the dealership could give you a meaningful discount. If you'd like to take this money-saving route, however, you may not be in the position to shell out for the cost of a new car. Buying used means more reasonable and potentially negotiable price tags, which could put you in the driver's seat when it comes to saving money by avoiding all the interest payments. Over the course of a loan on a high-priced new vehicle, you could end up spending thousands on interest, which is likely money you could put to far better use as you enjoy retirement.
4. Used Cars Can Be A Lot More Comfortable And Manageable
Unless you're a tech-junkie who can't wait to slide inside a self-driving car, you might find driving the latest vehicles to be more complicated than enjoyable and you wouldn't be alone: Many consumers aren't adapting well to the abundance of new technology the auto industry constantly inundates them with. Particularly if you've been driving for a number of years, you're accustomed to certain setups and devices, but with more devices buzzing and beeping at you, driving safely can become increasingly challenging. For these reasons, you're likely much better off in a pre owned vehicle that isn't loaded up with features resembling a Star Trek movie set.
Additionally, the seats, suspension and other elements of a new vehicle can be stiff and uncomfortable, which could impair your ability to maneuver safely, not to mention enjoy the ride. Whatever vehicle you ultimately decide on, if it doesn't seem to feel right, the American Auto Association (AAA) has a program to help you adjust and find the most comfortable and effective settings. You're not going to be safe in any car that doesn't adequately conform to and accommodate your body, along with adjusting to your personal driving preferences.
5. You Can Afford More Of What You Want With An Affordable Pre Owned Vehicle
Because the cost of a used car can be so much lower than a new one, you may be able to add on many of the features you've always wanted in a car. Especially in consideration of enjoying your retirement, you may want an outstanding music system or a sunroof, all of which may be possible with the lower pre owned sticker price.
Once you decide on buying a used car, find a dealership with which you can form a lasting relationship with. Although you may not be needing another vehicle anytime soon, you will need regular maintenance, tire and oil changes and may have questions that need answering. Establishing a solid dealership-to-customer relationship means their door will always be open to you, even if you just want to stop in and tell them how much you're enjoying the vehicle you bought. Should you ever have any more pressing concerns with your car, the way it handles or keeping it in good condition, you'll know just where to go.