What is the best way for a Senior to handle car ownership/transportation?

Aunt Bea

Aunt Bea

SF VIP
Location
Near Mount Pilot
My practice has always been to buy an inexpensive new vehicle and continue driving it until the repairs became excessive or I felt it was no longer safe or dependable, the last vehicle lasted 13 years and the one before that lasted 10 years. Now that I no longer work I drive about 5,500 miles per year and I'm wondering if I should switch to a low mileage lease and enjoy the peace of mind that comes with driving a new vehicle, continue my current practice or purchase and trade my vehicles on a set 4, 6, 8, year timeline.

I'm also considering taking Lon's approach and moving to an area where I would not really need to own an automobile. The apartment would cost more but the additional cost would be offset by convenience and reduced transportation costs.

I would appreciate knowing how you handle your transportation needs and what you think might be a good option in my situation.

Thanks, B
 

My story. 79 years old and drive less than 9,000 miles a year. We just leased a sporty little model for 4 years and are allowed 10,000 miles under the lease agreement. When the lease comes around again, I may or may not want to drive anymore. We thought this would be our best way to go.
 
Aunt Bea said:
My practice has always been to buy an inexpensive new vehicle and continue driving it until the repairs became excessive or I felt it was no longer safe or dependable, the last vehicle lasted 13 years and the one before that lasted 10 years. Now that I no longer work I drive about 5,500 miles per year and I'm wondering if I should switch to a low mileage lease and enjoy the peace of mind that comes with driving a new vehicle, continue my current practice or purchase and trade my vehicles on a set 4, 6, 8, year timeline.

I'm also considering taking Lon's approach and moving to an area where I would not really need to own an automobile. The apartment would cost more but the additional cost would be offset by convenience and reduced transportation costs.

I would appreciate knowing how you handle your transportation needs and what you think might be a good option in my situation.

Thanks, B
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Dear Aunty. If you only drive 5,000 miles per year you would with out a doubt be better off moving an using Uber.

Do the math. If you drive only 4 to 5 hundred miles per month and had Uber instead your approximate monthly cost would be $280 to $350. What would another vehicle cost you, insurance, parking,safety, convenience?
 

Lon said:
Dear Aunty. If you only drive 5,000 miles per year you would with out a doubt be better off moving an using Uber.

Do the math. If you drive only 4 to 5 hundred miles per month and had Uber instead your approximate monthly cost would be $280 to $350. What would another vehicle cost you, insurance, parking,safety, convenience?
Click to expand...

Lon, No Uber in my area at this point. Uber will come eventually, they are bombarding the area with television commercials urging the politicians to act. Until then we still have a network of city buses and pricey cabs. If I move to a more expensive building I would have access to a weekly grocery bus, restaurant in house, beauty/barbershop, bank, etc... Definitely a long range possibility, we'll see.

No matter how I figure it automobile ownership costs me about $350.00/month not including the lost opportunity cost of having money tied up in a vehicle, that is probably another $100.00/month. Leasing seem to be about the same or even a little bit less with no investment.
 
I need a car where I live, public transportation isn't readily available. I purchased a low-mileage used car still under warranty a couple years ago--they call them certified used cars. I could afford to pay cash so that avoided car payments. Not a big fancy car but comfortable for me--I drive less than 5,000 mi. yr. also.
 
Carla said:
I need a car where I live, public transportation isn't readily available. I purchased a low-mileage used car still under warranty a couple years ago--they call them certified used cars. I could afford to pay cash so that avoided car payments. Not a big fancy car but comfortable for me--I drive less than 5,000 mi. yr. also.
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Carla, My mother used to use a similar approach, she would buy a high mileage certified used car and then drive it for a few years until the original high mileage and her low mileage averaged out to make the car seem like a cream puff that had been owned by a little old lady! She would shine it up and sell it off the front lawn, then repeat the process. These days with CarFax and other similar tools a person probably wouldn't make out nearly as well as she did years ago.
 
A vehicle is a necessity where I live as well, as public transportation here is, at best, abysmal, and things are spread out all over the place.

This year my previous car died, so I bought a low mileage two year old car in excellent condition and will drive that one until it dies.
 
Butterfly said:
A vehicle is a necessity where I live as well, as public transportation here is, at best, abysmal, and things are spread out all over the place.

This year my previous car died, so I bought a low mileage two year old car in excellent condition and will drive that one until it dies.
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That's my plan too. I get good gas mileage. My car is now going on six yrs old but only 31,000 mi. Plan on keeping it for a while.
 
My goal is to quit driving by the time I'm 80 (I'm 70). Once I move back to the mainland in 2017, I will do a 5 year lease on something (I'm thinking small Mercedes) then, when that is done, do another ~5 year lease on whatever strikes my fancy. Then I'm done driving. I hope. Knock on wood. Cross my heart. God willing.

The big question though, is when do I quit riding the Harley???
 
Hoot N Annie said:
My goal is to quit driving by the time I'm 80 (I'm 70). Once I move back to the mainland in 2017, I will do a 5 year lease on something (I'm thinking small Mercedes) then, when that is done, do another ~5 year lease on whatever strikes my fancy. Then I'm done driving. I hope. Knock on wood. Cross my heart. God willing.

The big question though, is when do I quit riding the Harley???
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Never....quit the Harley. Just do what the seniors down here do. Get a three wheeler.
 
Lon said:
Dear Aunty. If you only drive 5,000 miles per year you would with out a doubt be better off moving an using Uber.

Do the math. If you drive only 4 to 5 hundred miles per month and had Uber instead your approximate monthly cost would be $280 to $350. What would another vehicle cost you, insurance, parking,safety, convenience?
Click to expand...

Carla said:
I need a car where I live, public transportation isn't readily available. I purchased a low-mileage used car still under warranty a couple years ago--they call them certified used cars. I could afford to pay cash so that avoided car payments. Not a big fancy car but comfortable for me--I drive less than 5,000 mi. yr. also.
Click to expand...

Butterfly said:
A vehicle is a necessity where I live as well, as public transportation here is, at best, abysmal, and things are spread out all over the place.

This year my previous car died, so I bought a low mileage two year old car in excellent condition and will drive that one until it dies.
Click to expand...

1 ditto.gif..to all of the above!! We live out in the boonies and need the vehicles!! 10 miles to town and 15 miles to the bigger town for supplies..
 
Ken N Tx said:
View attachment 34176..to all of the above!! We live out in the boonies and need the vehicles!! 10 miles to town and 15 miles to the bigger town for supplies..
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Same here...we are 4 miles to a small town, and 15 miles to the next town with more stores. I have a 97 Dodge Dakota 4WD with only about 90K miles on it...in almost like new condition. I keep it so that we can get out in the Winter in bad weather, and only put about 2,500 miles on it throughout the year. Our primary vehicle is a 2006 Impala LTZ, with only about 60K miles on it...it is our "going to the city" car. There is a big auto show every March in Kansas City, and I intend to go there to browse the new cars, without a salesman bending my ear. I'm thinking about either a new Ford Escape, or a Chevy Malibu. I may even consider a Toyota Camry....as it is the "Most American Car" currently available. A car is a waste of money when you consider it as a financial decision....but so long as our health permits, I intend to keep driving. There are good arguments for leasing, if a person changes cars frequently, but if you keep the car for several years, buying is probably more practical. Most cars loose 20% of their value the moment they leave the dealership.
 
To own or to lease only you know which would suit you better financially. Moving to an apartment or where public transportation would work for you is one that comes with some decision making beyond financial. Add to that would an apartment be in a senior living only complex or in general public setting. Next would be the same social life you may have now with family & friends do you want to give that up by moving? Important would be health care, finding a doctor or doctors as the case may be for whatever kind of health care you might need. Food, entertainment, travel just for the fun of going somewhere by car and of course do you expect to lose the physical or mental ability to be able to drive yourself ?

As for buying we do the same buy new, pay cash on a model that has all the bells & whistles. The a 10 year warranty on engine & drive train is the consideration we value. Routine minor items like brakes & lights if they would need replacing I can replace by doing the work myself. Oil change using 15,000 mile pure synthetic with the right filter for the extended miles for me is the most economical way to go. The last one we bought and traded in still had the original tires and one warranty repair so we bought the same brand. Tires if we would need them this time not a major cost because typically tire dealerships have sales like buy 3 get the 4th. one free. Mounting,tire repairs, and rotation are advertised as free for as long as I own the car. Insurance not that expense for a person my age.
 
Right now, with just me retired we still have our two vehicles, but once Rick retires we will go down to one. Maybe even before he retires. We lease, often routine maitanence is free as part of lease. 3-4 years later turn them in. Plus, Rick speculates that if something should happen to one of us, it would be easier for the other to turn in the extra car. We do not have Uber or Lyft here yet, but since it seems that the only way to access them is from smart technology, which neither of us are interested in getting, that is not an option for us. But we do have other transportation services here
 
We bought the wife a car about 2 years ago. We never purchase a new vehicle. Always find one with minimal miles, letting someone else take the depreciation hit. Hers had 3,100 miles on it when we purchase it. The dealer offered a 5-year, 50,000 mile bumper to bumper warranty at no additional cost. Well, he wanted about $1,000 for the extended warranty, but would not have sold us the vehicle unless he tossed it in. Two years later, she just turned over 8,000 miles on the car. We have taken 4 fairly long trips in it. If left alone, she will put less than 1,500 miles/year on a vehicle.
We pay cash for our vehicles. With her vehicle, we have a huge insurance discount with our State Farm policy due to the low mileage driven. I don't believe we could lease for what our cost of owning her car is.
The idea was to get her our "last car". Keep the mileage low so when we both are retired and finally get to where we only need one car... we have one that has very low mileage.

I put lots of miles on my truck. I'll drive it 25,000 miles/year. So, could not afford a lease with it. I get reimbursed well for the use of the truck by our firm. Will need to decide what to do when I retire. Do we keep it, even though it will have fairly high mileage and could cost us some repair bills. Will we look for another low-mileage vehicle so we both have our "necessary" transportation? Will we look hard at downsizing into a single vehicle? That discussion hasn't been held yet.

Think I mentioned on here before, but we have "protected" ourselves against deductibles on both home and auto insurance. State Farm has a bank. We never used that for typical banking purposes. A couple years ago, we opened a money market account with the State Farm Bank and deposited the dollars that would cover both home and auto deductibles in case of a total disaster. Then, we just "forgot" about that account and will leave it set. I'm sure there are financial advisors who will suggest we should have invested those dollars in something that would make us more income. We are more concerned about protecting ourselves against the unknowns than worrying about return on investment. A number of people have said that is a great idea and we know some seniors who have followed suit.
 
Gee whiz. I'm 69, and I drive a Porsche 911 Turbo with 6 speed manual transmission, a genuine 200 mph car. I'm not sure I fit in this forum yet. One day, I will own an autonomous car.
 

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