Every retiree wants to reward himself after years of hard work. While many dream of a cruise in sun-kissed islands, there are some who’d rather prioritize owning a new set of wheels. If the latter describes you, think twice before spending a huge chunk of your savings on a brand new car—it may not be a good idea if your nest egg isn’t that sizeable. You can choose to take longer loans for lower monthly repayments or just ditch the idea altogether and go for a used car. Besides the obvious lower acquisition and insurance cost, here are other reasons why a used car makes a sensible retirement investment:
Used cars are just about as good as brand new.
The best of current cars are designed for utmost comfort and reliability so you can expect long-term, dependable performance. Read about your favorite brand and see how much change your prospective model has gone through the past ten years. Chances are there aren’t much redesigns from its older versions except for a few tweaks on aesthetics, engine power and safety.
No need to shoulder depreciation.
All cars depreciate yearly but they lose value really fast during the first three years of their lives. Most are stripped off around 30% within the initial year of ownership. If you buy a used car, you no longer have to worry much about minor dings and dents because they would no longer affect the car’s value significantly once the depreciation rate plateaus.