If you’re retired or anticipating your imminent retirement, you probably have a number of new things you’re hoping to add to your life, from new hobbies to new friends to new experiences. One item that may be on your retirement wish list is a new car. Consider these essential points before you purchase your post-work dream car.
Paying for Your New Ride
Like all auto shoppers, one of your biggest considerations will be the cost of new vehicle. However, buying a car post-retirement adds some complications to your car financing calculations.
If you have a healthy retirement account, you might be able to pay for your new auto in a lump sum out of one of your yearly distributions. On the other hand, you may be reticent about draining a large amount of cash from your savings to buy a depreciating asset.
If your credit is better now than it was during your youth, you may be able to qualify for a better loan, financing a new Honda for sale under very favorable terms. You may even find that leasing a car is an attractive option, as it means no large outlay of cash, lower payments, and perhaps a fancier automobile than you’d otherwise get.
Timing Your Auto Purchase
If retirement is looming in your near future, you may wonder whether you should buy while you’re still employed or wait until you’re officially retired. The choice of timing may be entangled with your financial considerations. If you’re planning to use your retirement funds to pay for your new car, you’ll likely want to wait until you can withdraw funds without a tax penalty.
On the other hand, if you expect to take out an auto loan, applying for that loan while you’re still employed and have a steady income may help you qualify for better terms.
Then again, perhaps other considerations will factor into your decision about when to purchase your new car. If you’re still working, the time you have to devote to car shopping may be limited. If you prefer to shop around, look at, and even test-drive a lot of cars before you commit to a purchase, you may prefer to wait until retirement frees up your schedule.
Another possible benefit of waiting until after retirement to buy your next car is that uncertainty about your retirement lifestyle may make deciding on which car to buy difficult. Giving yourself time to settle into your new routine may help you narrow down your vehicle choices.
Choosing the Right Vehicle
You may find that selecting which vehicle to purchase is a harder choice than any other. Ultimately, your choices will likely be shaped by what you expect your post-retirement life to include. If you’re envisioning a quiet life of mundane daily tasks and errands, maybe you’ll want a no-frills sedan.
If you’re concerned that your reflexes may degrade as an older driver, you’ll be reassured by having a vehicle that includes the latest driver assistance features. If you expect to pitch in and provide some supplemental daycare for your grandkids, you may want a minivan or SUV with plenty of room for car seats.
Getting the Car You Want and Deserve
Shifting from the world of work into the lower gear of retirement can be an excellent opportunity to upgrade your lifestyle with a new car. Make the most of your financial stability and hard-earned life experience to roll into your “golden years” on a new set of wheels.