As we age, one of the toughest decisions we face is when to hang up the keys. For many, giving up driving means losing part of their freedom. However, not everyone has to make this difficult decision due to health issues. Some people may choose to unload their car due to financial reasons. With over 41% of American households having only one car or none at all, having fewer vehicles can be a viable option for many.
Financial Benefits of Being Car-Free
- Transportation costs account for about 14% of household spending among Americans ages 65 and over, with average spending being $8,172 in 2022.
- A good 59% of older Americans report being cash-strapped, and only 46% agree that they’ve managed to save enough for a comfortable retirement.
- Unloading a vehicle could free up loads of money in older people’s budgets, especially given the high cost of owning a car today.
Cost of Owning a Car
| Monthly Costs | Average Cost |
|---|---|
| Fuel | $400 |
| Registration Fees | $100 |
| Maintenance | $100 |
| Insurance | $500 |
| Total Monthly Cost | $1,100 |
AAA reports that it costs $1,024.71 per month, on average, to own a new vehicle. While it’s not a given that you’re shelling out a similar amount each month, you’re probably spending a decent chunk of money nonetheless on fuel, registration fees, maintenance, and insurance.
Benefits of Giving Up a Car
- Lower transportation costs
- Lower insurance costs
- No more maintenance worries
- Reduced parking stress
- Lower tariffs on vehicle parts
Alternative Transportation Options
- Rideshares
- Public transportation
- Zipcar rentals
- Shuttle services in independent living communities
Some people may be concerned that giving up a car means losing freedom. However, this can be mitigated by exploring alternative transportation options. For example, if you only need a car occasionally, you could consider getting a short-term rental Zipcar. Many cities also offer discounted fares for older riders on public transportation.
Conclusion
Giving up a car in retirement can be a viable option for many people. While it may require some adjustments, the financial benefits can be significant.