Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Came to this thread late. With that said, we will buy our next vehicle when needed. Simple as that. Mrs5150 loves her 2002 Subaru. Proclaims she will drive it until the wheels fall off.
Says I, as long as we can trust it. Ok says she. It matters little whether we are both retired or not. If ya gotta replace yer car then ya gotta replace yer car.
... Certainly, Mr5150 -- Couldn't disagree with that 'philosophy' one bit.
In a manner of speaking, we are in similar situation(s) as you & yours are: We currently drive 2 older-model cars (1998 & 2001), and either of them are fine for commuting to our jobs.
My OP had asked about replacing one of those vehicles with one we could comfortably drive on long-haul trips. Currently, both our daily-drivers are not comfortable (for us), driving for long stretches, on the highway.
We will both be retired full-time before the end of the Summer; I'll be retired before the end of Spring. One of our retirement goals is to travel to National Parks, and stop to see our Families and old friends along the way. We were kind-of hoping to make a large "circuit"-type trip, covering as many of the Parks, and our Families, as possible, the first go-round. A newer, reliable vehicle will be one of our first prerequisites for planning any long-distance trips.
I'd hate to be out on-the-road, somewhere, and "have the wheels fall off" any vehicle. That happening just seems to be a lot less-likely, should we go in a later-model, reliable vehicle ... which was why I posed the question:
"Buy a Replacement Vehicle Before (or After) Retiring?" ... It turns out that "debt-to-income ratio" will likely contribute to whether we buy something earlier, or later. That's something we're still looking at.
Depends on one's situation. For those of us that live on guaranteed income streams, and don't have large investment accounts to draw upon, financing makes sense. No way I could drive the cars I do, if I had to pay cash for them.
Just retired about a year ago now on SS and a small income from a full time part time job. My Fico scores have remained unchanged since long before I quit my regular job and moved South but I basically got the same deal on the same car 3 years apart. 2014 Camry 60 months no interest nothing down. 2017 Camry 3% interest 72 months nothing down but got the same car for 6K less 3 years later.
My 2007 Altima with 200K on it had reached the point where it was going to become a money pit. No thanks when I was a teenager fresh out of HS I could bear driving a beater but not at the age of 65.
Automobiles are a declining value asset. Buying a three year old low mileage used vehicle (i.e. Lease turn-in vehicles)will drop your cost by half, and any niggly warranty issues will have already been sorted out.
Certified Pre-Owned will give you more peace of mind if you are apprehensive of used cars.
I'm 67, and plan to go into my retirement years with my best buddy, a 1985 Toyota Supra. Engine, transmission conks out, put in new ones!
You can take all that high tech gadgetry and stick it up the exhaust pipes of your new cars!
One, it's nice to enter retirement with things in good shape. That means cars, but your house and major appliances, too. For me, it was easier to take care of that stuff before retirement than make it part of the retirement plan. I just didn't want to worry about some of the "predictable big stuff" for 5-10 years. No different than wanting to go into marriage debt-free -- hedge the bet if you can!
Isn't credit rating all that matters on a car loan? I don't think employment has even come up on the last couple I've done. That said, my FICO score has actually gone up since I retired (if it goes up much more, I'm buyin' an island). Again, I don't think income plays into that - I make a quarter of what I did before retirement. In short, I don't think your employment will matter at all for a car loan IF you have an established credit record. That may vary by state, tho.
Isn't credit rating all that matters on a car loan?
No; it isn't "all that matters". Credit rating counts for a lot but the amount (and nature)
of your total income and any other debt payments you have (debt:income) counts for more.
Quote:
I make a quarter of what I did before retirement.
How much less debt (eg mortgage, CC's, etc) do you have now that your earned income days are over?
And how much of that lower income is required to cover the car loan payment?
(I don't expect you to answer these two Q's openly... I sure wouldn't. But do consider them)
---
eta: These are basic points made earlier in the thread and extend on others made frequently.
In short, too many will buy more car or more much house than they really should (new or not)
when they do it with debt. It's bad enough when they're thirty and on the rise but at retirement age...
Last edited by MrRational; 04-12-2017 at 06:56 AM..
Automobiles are a declining value asset. Buying a three year old low mileage used vehicle (i.e. Lease turn-in vehicles)will drop your cost by half....
And you can shop for appliances, dishes, furniture, and clothes at Goodwill and save 90%! However, some of us prefer to buy things new as opposed to used. Oh, wait; I guess I need to put my opinion in ALL CAPS to add emphasis and give it the appropriate gravitas.
And you can shop for appliances, dishes, furniture, and clothes at Goodwill and save 90%! However, some of us prefer to buy things new as opposed to used. Oh, wait; I guess I need to put my opinion in ALL CAPS to add emphasis and give it the appropriate gravitas.
BUY NEW!
There, that's better.
Hmmmm, hmmm should I read in to this that you are able to comfortably buy new and buy what you want with little financial sweat?
No; it isn't "all that matters". Credit rating counts for a lot but the amount (and nature)
of your total income and any other debt payments you have (debt:income) counts for more.
How much less debt (eg mortgage, CC's, etc) do you have now that your earned income days are over?
And how much of that lower income is required to cover the car loan payment?
(I don't expect you to answer these two Q's openly... I sure wouldn't. But do consider them)
---
eta: These are basic points made earlier in the thread and extend on others made frequently.
In short, too many will buy more car or more much house than they really should (new or not)
when they do it with debt. It's bad enough when they're thirty and on the rise but at retirement age...
... Thank You to MrRational and TuborgP (Post #47) for Y'all's understanding!
IF ... I were capable of doing my own mechanic-work on a vehicle, and
IF ... I had the tools and work-space to "do the needful" for an older car or truck ...
I wouldn't hesitate to make it happen. Yet, since I have neither, I'm at the mercy of auto mechanics who do that for a living. That tends to prescribe that we find us a reliable, long-lasting vehicle (first), and one that will be comfortable to drive on the road (second). "The Price we Pay" (third) will be predicated on how much we decide we want to spend to get the first two criteria solved.
Now ... the "fixed income" portion of this equation, upon which many of us rely, and upon which ultimately leads us to the cost of financing, is something we want to think about, long and hard. DW and I certainly are!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
