One reality that most retirees face as they push into their senior years is a curtailing of the budget.
Despite working in greater numbers than before (and for longer), many seniors face financial fragility during their retirement period, according to Georgetown University’s Center for Retirement Initiatives.
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One way that retirees can trim their monthly or annual expenses is by reconsidering expenditures related to their vehicle. Here are a few key car expenses that could be worth avoiding or eliminating entirely.
Don’t Pay For a Car You Don’t Need
Cars are expensive; there’s no two ways about it. That’s why if you do have two vehicles in your driveway, you may want to seriously consider cutting at least one of them out of the picture.
Certified financial planner (CFP) Adam Bornn of Parallel Wealth explained his position on the subject in a YouTube video.
“Come retirement you can probably scale back to one vehicle. Vehicles, outside of your home — they’re probably the largest expense that you have,” he said.
“Food might be in there as well because it’s become very expensive, but vehicles are an expensive entity to own — not just to purchase up front, but the ongoing insurance, maintenance, gas — all of it becomes very, very expensive.
“Could you reduce down to one vehicle? I think that’s a conversation a lot of you need to have. And for single people, could you scale down to no vehicle?”
You might also consider replacing a luxury car with a more modest used car, as Javid Jaraiedi, founder of the Jaraiedi Financial Group, explained to NextAvenue.
“Maybe you have one nice car to drive to parties and things like that, and one less expensive car to take grocery shopping and on errands,” he suggested, instead of holding on to two fancier rides.
By doing so, you can skip the comprehensive coverage on your grocery-getter while also seeing your car payments drop precipitously over the long term.
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Avoid Overpaying for Your Insurance Coverage
Car insurance can too often become a “set it and forget it” expense, with over half of those polled by The Motley Fool saying they rarely or never switch providers — and a staggering 43% of respondents indicating that they’d never switched providers.
While comparison shopping between insurance providers in order to secure the best deal is one simple trick to save money, consider increasing your deductible — particularly if you find yourself driving less due to a lack of commute (or for other reasons).
Given that many retirees may have cash on hand to self-insure in the event of a minor accident or loss, it may be wise to consider an increased deductible.
Andrea Woroch, a consumer finance and budgeting expert, reinforced this point when speaking to U.S. News.
“Increasing your deductible can lower your monthly premiums, and bundling services can also offer some savings,” Woroch advised.
Dodge Future Expenses by Properly Maintaining Your Car
While keeping up with car maintenance bills and general upkeep can sap your financial strength, employing preventative measures to keep your vehicle in tip-top (and safe) condition can save you money in the long run.
Here are a few common maintenance and early repair strategies that can help your pocketbook:
- Balance and rotate your tires: According to iGrad, ensuring that your regularly balance and rotate your tires can prevent premature wear on your tread, leading to a longer life expectancy for the tire overall. Replacing your tires when necessary, either due to wear concerns or a change of season, is also a safety concern to be addressed. Regular tire inspections for deterioration or punctures are also recommended.
- Keep on top of routine brake work: “Perhaps if you had taken your car in initially, you would have just needed to replace a brake pad, which is somewhat routine. However, by holding off, you may need to replace the brake pad, rotor and caliper, which can amount to hundreds of dollars more,” iGrad outlined.
- Fluid checks, changes and undercoating: Regular fluid checks can mean the difference between a well-oiled machine and a broken down vehicle. Oil changes at regular intervals are key, and if you live in a climate where winter roads mean heavy salt, undercoating your car to prevent rust accumulation is also a wise investment.
No matter your financial decision, making informed and well-reasoned decisions when it comes to your car (or cars) can save you a great deal of money in the long run.
For retirees, this could mean the difference between a comfortable lifestyle and having to strictly budget more than is already necessary — an added stress that few need or desire.
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This article originally appeared on GOBankingRates.com: 3 Car Expenses Retirees Should Avoid in 2025
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