For millions of retirees, a car represents independence.
It means getting to medical appointments, running errands and staying connected with family and friends. 4 Car Brands That Are Likely To Last 250K Miles — and 4 That Aren’t And while many expenses shrink in retirement, the cost of owning a vehicle often does not
In fact, experts say several hidden and unpredictable car costs can strain a budget that relies heavily on Social Security income. Here are the car costs that take the biggest bite. 1. Car Payments Can Eat A Large Share Of Social Security Income While car payments might feel manageable during working years, they can quickly consume a significant portion of a fixed retirement income.
Eric Bowie, founder of Smart Money Bro and author of the book “How To Buy A Great Used Car With Cash,” said many retirees living primarily on Social Security feel financial pressure from their car “because transportation is one of the few large expenses that don’t disappear in retirement.” The monthly payment alone can become unsustainable. A car payment of $500 to $700 may not seem extreme during working years, but on a Social Security income of $2,000 to $2,500 per month it can consume a very large portion of the budget, Bowie said. 2. Insurance Premiums Can Rise Unexpectedly In Retirement Insurance costs can also surprise retirees.