When people enter retirement, one of the rewards they give themselves after so many decades of hard work is a brand new car. For some people, cars are simply a way to get from one place to another, and for others, they may be a symbol of wealth and status, but for retirees buying a new car is a chance to fulfill a long-held dream.
Not everyone dreams of driving a Ferrari, Lamborghini, or an Aston Martin. Just driving a brand new car or truck could be the dream, or your heart may be set on a fully loaded Cadillac or a Lincoln. No matter what kind of car you drive in your dreams, it is going to take some planning and preparation to spend your retirement behind the wheel of your dream automobile. Here is our quick guide on how anyone can get their hands on their dream car for their retirement.
See Where You Can Save on Expenditures
Buying a high-value car, such as an exotic sports car, can come with a lot of added expenses that some drivers fail to consider.
Fuel costs and insurance are often the biggest culprits when it comes to spending money on a vehicle. Try to estimate what your fuel costs would be before you buy your car, so you can make plans for absorbing any extra expense. You should check out AARP auto insurance to see if you can save money on car insurance, even if you buy an exotic vehicle. This insurance is especially for retired people, and The Hartford can often offer a better deal than many other insurers on cars for retirees. This can help save you money, and ease the cost of financing or lease agreements.
Plan Your Purchase, and Your Financing
If you are getting a retirement bonus or a large payout when you retire, it can be tempting to put this towards your dream car or truck, but this isn’t always the most financially prudent action to take.
Vehicles depreciate in value over time, and for some high-end exotic cars, the loss in value can be sudden and quite large. It would be best if you researched all your options before putting a large portion of your retirement nest egg into a purchase that will lose a lot of its value. Financing or leasing can sometimes be a better option, giving you the car of your dreams but letting you hold on to any lump sum you have. If you decide to switch to a different car later, you won’t be losing your hard-earned money in the bargain.
Wise Men Say Only Fools Rush In
It can be very tempting just to go ahead and ‘treat yourself’ when the time comes to buy your dream car, but you should take a step back and make sure you aren’t rushing into it. Make sure your heart doesn’t overrule your head.
Make a list of ‘must-haves’ for your dream car, from features that you can’t live without down to the color you would prefer. You may make some compromises in the heat of the moment that later you can’t live with. Don’t ruin your dream by buying a car that doesn’t tick all your boxes.
When you have spent many years working and had a long career, you deserve to drive the car of your dreams. Make sure it doesn’t turn into a nightmare, though, and follow our advice above.