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As I approach my 70th birthday I’ve decided it’s probably time to buy a new car even though my nearly 19 years old car runs well . Given my proclivity for keeping cars a long time, this is almost certainly going to be my last car.
My question is what are your thoughts on approaching this? I am not interested in leasing or buying used. My sources of funds are a tax deferred account, a brokerage account and a money market account . My house is paid off and I have no other debt. I should probably mention I dislike the process of buying a car. In my past experience even if you think you’ve negotiated everything online they still find a way to waste your time.
Thank you.
We’re in the process of buying our first new car in 11 years. Probably will be a Subaru Outback (that is what we have now and it has been very reliable). We are working thru the Costco auto buying service and I’ve got a pretty good offer already, 18% off MSRP. Of course all the fees, taxes, etc (including a tariff charge of almost $1000 since the Outback is now made in Japan) will add back most of the discount. Sales tax is almost $3500 alone. I haven’t sat down with a Sales Manager yet, probably do that tomorrow. The car they quoted is a black car with black interior — definitely a no no in the desert southwest. We’ll see what happens when I ask for a quote on a light colored car. I did notice that the car we drove had Dunlops on it. I thought was sort of tacky for a top level trim car. Subaru used to fit Bridgestones to most models. Our current Outback was bought thru an Autonation Subaru dealer and it was no hassle at all. They took about 12% off the MSRP and offered a few “add ons” at the Finance desk but there was no pressure to accept anything.
Consumer reports helps me narrow down my choices for a new car. I then narrow the selection further by using YouTube to view numerous hands-on testing videos.
When I’ve made my choice, I go to Truecar.com. Here I can find out what others in my area paid for the car I am interested in. The downside is that you have to supply your contact information. You will be contacted by 3-5 dealerships selling that car and sometimes 2-3 different salespeople from the same dealership.
The upside for me is that this process saved me $2000+ over my best negotiated price.
The more I have read and written on HD all these years, the more I am convinced I am not “normal.” In this case I have never test driven a car, never shopped dealers, never looked up a rating on a car or considered buying online.
I just go to a dealer selling what I am looking for. I have in my mind what I want to spend and where the money will come from. When the car and what’s in my mind match, I buy the car. It usually a one trip task.
That might work with new cars. Buying second-hand is a different story.
Must do a test drive. Even the hint of cigarette smoke will send me on my way.
Perhaps as we age it isn’t worth the negotiating hassle and just want to enjoy our remaining years…and the car of our dreams.
I read an article this morning from Komando.com titled: Use AI to cut junk fees from your car quote
VIN etching can cost $199 to $499, and paint or theft packages can hit $2,500.
Tax, title and registration? Normal. Then come dealer prep, VIN etching, nitrogen tires, paint protection and theft packages. Suddenly, Todd is charging you $399 because the tires contain air that came from Swiss mountains.
Taxes, title, registration and government fees are generally not negotiable. Beyond those, fees aren’t sacred, they’re almost always negotiable. The dealer is counting on you not knowing that. If a dealer says a fee is mandatory: Fine. Lower the vehicle price by the same amount.
The humor at the end of the article:
A salesman asked what I wanted in a car. I said affordable. He said he’d never heard of a Ford Ibble.
I am more than a little surprised that Humble Dollar readers are not suggesting that you use Consumer Reports to make your decision. I certainly will when it comes time.
With their exceptionally thorough testing, they have shown that just because a brand is good doesn’t mean a particular model in that brand is good. They also have a really good feature called “popular choice vs. better choice”.
I would recommend buying the “car issue” or just subscribing to Consumer Reports. They have a car buying service too that I will likely use.
Many libraries offer access to Consumer Reports too. Good idea!
Julie, a couple of thoughts from my new car purchase in 2025.
Good luck!
Joan, I’m not sure what you mean about checking the online price after you get the price from the salesperson ? Can you explain further? In the past I looked at the inventory online , saw the advertised price and then requested a quote. At any rate, getting 3k off a Camry is very good . Calling the AG office – well done !
Julie, what happened was this: I was actually shopping for an SUV and was at the dealership test driving yet another one when my husband suggested I test drive the Camry. I relented and liked it. The next day after research, the salesperson wrote up the numbers and I signed and talked to Finance and was good to go. When I got home, I did an online search to send a link to a family member and lo and behold, the online price was $3000 less. I called and they (amazingly) apologized and rewrote the agreement – claiming an error was made by the internet team. If I had searched on line while I was originally sitting in front of the salesperson, I would’ve have found it. I was just lucky I wanted to share my purchase with my sister!
Joan, Thanks for sharing some great observations. To add a bit to each point:
1) Spot on that on line with maybe a bit of phone work is the way to go. Never negotiate on the dealers’ own playing fields. In fact whenever I go to look and maybe test drive, I never even ask for a price quote. I usually do that at a dealer I am unlikely to or know I won’t buy from then move on line from there with a generally wide search radius.
2) Unfortunately tires on new cars are not the best and Bridgestone would not be my first choice to see. On the bright side, at least they were not Dunlops as Toyota has periodically used over the years. You probably would have gotten even fewer miles on those.
3) The Finance office games are my absolute least favorite part of the process. I’ve been able to head most of that off by pre-warning the sales person to tell the finance office that if my contract is even one cent off of what was already emailed to me the deal is absolutely off. I started doing this after a purchase some 18 years ago when similar to your example they told me that they had “etched the windows” as an “anti theft” measure and tried to charge me $200+. I just handed the contract back to the gentleman and told him “no deal” and walked out. As I walked down the hallway I passed the salesman who I could tell knew something was up. I just uttered “he blew your sale” as I passed him. I was not walking particularly fast by design and sure enough before I got out the door the finance guy yelled that he would take it off. I finished the sale and still have the car (with it’s etched windows) to this day. Just for fun after I got home I called my insurance company to see if they really offered any discount for “etched windows” as the finance guy tried to claim. They did not….big surprise.
All the more reasons why the Dealership model is broken and needs to go the way of the dinosaur.
Thanks for sharing your experiences and what to watch out for.
A Toyota is high on my list after having owned four in the past 30 years. A concern I have now is that my local Toyota dealership has been sold to AutoNation. Past employees say they wouldn’t take their vehicle their for an oil change. An internet search about Auto Nation’s reputation, and my local dealer, give me great concern to continue doing business with them. There is another Toyota dealership ~40 miles away with very good reviews.
I once represented a guy who’d spent his long career in car sales. He told me that “in the old days” some dealers would bug the salesman’s office. So when the salesman left to go “run this by my manager,” they could listen in on any conversation in the office. It was obviously helpful if they heard the wife tell the hubby, “This is the car I want—buy it!”
I only buy cars from Carmax after having 2 wonderful experiences with the purchasing experience. No haggling and no surprises!
Is the price at Carmax typically retail or private sale or somewhere in between. No haggling is great to avoid the wasted time and angst of the car-buying process. But we HDers still want a good deal, right? ;).
I bought a new vehicle two years ago. I traded in a 25-year-old car of the same make (and got a good valuation, 67% over Kelley Blue Book).
The new vehicle has an internal combustion engine. I did not want an EV or hybrid. Here were some of my considerations:
It really depends on your personal situation. Some people love their EVs and hybrids, but it wasn’t the right technology for my situation and usage.
I wasn’t considering an EV or hybrid but thank you for the excellent analysis .
Thanks for the very thorough analysis.
If you have a car that is 19 years old and it still runs well, stick with the same brand, whatever it is! You’ll get the latest safety features, backup camera, etc. And you probably know the dealer already.
All my life I have haggled, it is grueling. I like the idea of doing an internet purchase by email. Further, I hear that the Costco price is a good one, and although you can beat it, is it worth $200 or $300 on a $60,000 car, I say no. Will buy a car in the fall, so thanks for the tips from everyone. Tell me, is 10% off MRSP a good deal? I think it all depends on timing, and always buy your car at the END of the month, that really does help.
Julie: I won’t suggest what to buy, but here are a couple of thoughts that may help in your decision making:
1) Consider using AI (say, ChatGPT) to give you some ideas and direction. Try using a prompt line that says something like this:
“Evaluate and compare the vehicles I am considering using a weighted decision framework that addresses purchase price, financing, taxes and fees, insurance, fuel or energy costs, depreciation and total cost of ownership; reliability, warranty, expected maintenance and repair costs, parts and service availability; safety, technology, convenience, cargo capacity and other essential features; seat comfort, ride quality, visibility, noise, accessibility and ease of entry and exit; and expected resale value, then identify the best overall choice, major tradeoffs, risks, fair purchase price and recommended negotiation strategy”.
In addition challenge its answers with the command: “give me a Red Team evaluation of your recommendations”. That will provide a challenge to whatever the recommendations may be and give you alternate insights.
Customize your prompts and its answers to your specific interests and needs. Always test and challenge the AI answer.
AND – this is important – submit your dealer’s proposal into (take a photo of it), say ChatGPT, and ask it to evaluate the document. You will likely find that it gives you insights, both positive and negative, that you may not have considered.
2) After 50 years of buying cars and running them until the wheels fell off – I no longer think that way. Today vehicles are virtually Computers on Wheels. Thus, I see this “things” as a highly sensitive computer, with a maintenance profile that is exceptionally expensive.
So, my new rules are:
A) Never Ever Again own a new automobile without a compete bumper to bumper comprehensive manufacturers warranty (of course excluding routine maintenance items). That may mean selling it before the initial warranty expires, or get the extended warranty and sell it a few months before it expires. By selling it, say 6 months before the warranty expires, you offer the buyer confidence that he won’t get stuck with an unidentified issue.
B) Consider the ownership of a new car kind of like an internal (virtual) lease- There is sunk capital cost, ongoing operation and maintenance cost and recapture value on the end of its life cycle. In this method the vehicle gets “recycled” with a new model and the process starts over again. If the warranty is solid, I see the car manufacturer taking the major maintenance risks that I no longer want to take – and, in effect, the manufacturer still “owns” the maintenance risk.
BTW: though I was initially hesitant to accept this, after 3 years of driving, we love our Subaru Outback.
Thank you Bob- all excellent points
As I approach my 80th, a “wild hair” prompted us to splurge on a new Z. We’d had one from ’90 to ’06 and loved it, but decided a SUV was more practical as we aged. An automatic w/a 180 mph speedometer was a lot easier on my left leg and the safety features are surprisingly numerous compared to 36 yrs ago. As before, I negotiated with several dealers up to 2000 miles distant from my home and found the best price at 2010 miles. A flight, followed by a train, followed by a rental car with friend/relative visits along the way took us to Arkansas and then a very fun drive back to the west coast. The only two downsides are the slight difficulty entering/exiting and the increased insurance cost. You only live once!
Anyone consider a 3 year lease for a new electric car? The technology is still moving rapidly and self drive tech is coming. Such a huge obsolescence cost in new vehicles.
My wife and I leased an EV for two reasons besides wanting to be green. First I was concerned about the depreciation and technology and second we were only able to receive the $7500 purchase credit through a lease. Eighteen months into our lease the car was totaled by a third party in a parking lot at our local senior center. As much as we liked the EV I can tell you we are much happier with an internal combustion vehicle. Annual milage on the vehicle is less than 6,000 which negates much of my concern on vehicle emissions.
At times, I have seen some crazy good lease rates for EVs.
If you are over 70, definitely consider a new Tesla and its FSD. I’m in my 80s and all my contemporaries are buying Teslas for the FSD. It is totally awesome and not very expensive. It is essentially “hands free” from leaving the garage to parking and a dream at night. Best to get experience with new technology before you get too old. As for cost, cheaper than gasoline and virtually no maintenance.
I love cars, always have. My husband…does not. I like having a new car now that I can afford it. He…does not. But one thing we both agree on is convenience. We want reliable cars that run and are dependable without a lot of extra work to keep them that way. We both have gone electric. I am fully electric and have been for 8 years (2 different cars – remember I said I like new ✨ ). He is partially so with a PHEV. His car has a little more maintenance than mine with an oil change every 2 years. But mine is basically tires and wiper fluid for the past 85k miles. And I love that. So if you are anywhere inclined to go electric I fully encourage you to. And the ease of buying from Tesla cannot be matched. I ordered my car online – put a down payment online – and when the car came in I took them a cashiers check. No haggling, no upselling, no wasted time. In and out in under an hour. But I did have to wait a few weeks on the car. Best car I’ve ever owned, bar none. I know Tesla has a lot of political baggage, but I am just sharing my experience.
My other point to consider is safety. My husband’s previous car was 17 yr old. Nothing wrong with that, but it didn’t have a backup camera, side air bags, blind spot alert, front collision sensors, etc. If you can afford all the bells and whistles that come with modern car safety I think you are foolish not to get them. I had to practically force him to buy a new (newer) car. I even threatened to go buy one for him myself (and he knew I would bring home something fancy that he would be embarrassed to drive) so he finally bought a 2 yr old Honda. And despite the learning curve of all this new fangled stuff on the car he is very happy, but he still misses the tape deck. So pay for safety if you can afford it – it is worth it!
I will add that hubby bought through Carmax. It was definitely easier and quicker than haggling through a dealership. But no where as easy and quick as ordering online and picking up like with Tesla. Carmax is mostly used cars, too, and I know you said you wanted new.
Car geek here. It’s always fascinating to hear others reactions to the car buying process and the new vs. used decision. My wife and I have different thoughts and needs, so we end up buying personal transportation, her car and my car.
Interesting story about our most recent purchase, November of 25. We bought a RAV4 XSE Hybrid AWD for my wife. We paid MSRP plus a modest doc fee after using the internet best “out the door price” method. There were exactly zero new cars to test drive that met these requirements in the entire metropolitan area of St Louis MO. Not a small town. So we test drove a used one, and ordered new. Hybrids are in demand and command a higher price these days.
Here’s the interesting part, why we bought the car. Our younger son drove a low mileage pickup truck, but was tired of the parking hassle and gas consumption. Our older son wanted a pickup truck, but could only afford a high mileage one. So we traded our 6 year old luxury SUV (Acura RDX) for the truck with our son, based upon an agreed up wholesale value that lined up as the same value. He’s been happy with the luxury, smaller size and better mileage. Our other son agreed to buy the truck from us (in advance) at a favorable interest rate (4.1%) with a payment he could work with, he sold his old car and used the funds as a down payment.
After financing the new RAV4 through our credit union, we ended up paying off the car this Spring, using taxable account funds. The truck buying son sold his house and paid off the car which we used to offset some of the funds withdrawal. Everyone got what they wanted!
John, when we bought my Tacoma in the spring of 2020 (before the chip debacle) we thought we would be able to haggle over price, as we figured no one would be out buying. We went to about five dealers and only one had them. The dealer said you can choose between these two. That is all he had in stock. I knew it was worthless to haggle over price. We also were selling my old Tacoma to my brother so didn’t have to haggle over that price. When we bought our Toyota Crown Signia in 2024 they were just coming on the market, and they were incredibly hard to find, so again we knew we had to pay what the dealer wanted.
I have seen very few Crown vehicles on the road . Do you like it? I believe it is the replacement for the Avalon , which was a very good car.
We bought our only car – just have the one …
we’re retired – back in 2019. I put the features we wanted into a buying service. We were inundated with emails.
We decided on the car and offer our regular dealer made us. We paid cash. We take it into the dealership for service at the recommended intervals.
Like Dick, we HATE hassles.
Well I’ve loved my Tesla Model Y since September 2020! It has its quirks but fun to drive, amazing acceleration and almost 0 maintenance. The buying experience couldn’t be easier, all online.
Although I hope there will be several equally capable self-driving car options when I decide to replace my 10 year old Lexus, the anticipated freedom it will give me to once again drive at night is exciting to think about! Happy to hear that your experience with Tesla has been positive. I chafe at the restriction I’ve felt for the last 7 years. Nothing seems to help my night vision and I can easily become disoriented. It’s a scary look into how it must feel to experience dementia.
Let’s hope the “ all on line” model gains more traction. It seems to be, albeit slowly. The dealer model we are largely forced to use is archaic and not in the best interest of consumers who would otherwise choose to avoid it- key word “ choose”.
On a positive note, many people keep their cars much longer just to avoid the unsavory process of buying a car.
There have been some very good thoughts on how to at least minimize the interface with the dealers in the comments below. This includes but is not limited to buying cars that last for 300K plus miles with a basic maintenance program best done at non dealership, independent shops or better yet in your own garage!
First let me say that as a retired commission salesman, I actually enjoy the car buying process.
We own two types of cars. A large suv to pull our travel trailer and a smaller one for economical purposes.
As I researched the size vehicle I was interested in I convinced myself that the cost wasn’t a factor, comfort and reliability were.
But when the time came and I knew exactly which vehicle we wanted to purchase I went back to my old way of thinking. I went with reliability and cost, over comfort. When I buy a car I want to “know” that it’ll last us 300,000 miles or more, so we bought another Honda CRV Touring trim level. I enjoy the 33+ mpg and all of the fancy non-essential bells and whistles. My wife on the other hand hates bells and whistles, and doesn’t care about the mpg’s. She wanted comfortable and we both agree that it is not.
Old habits die hard, and so do old mindsets
Don’t you get bored with a car after 200,000 miles let alone 300,000? People spend a lot of time in their cars, seems like it should provide more than just getting from here to there.
Thank you the response Richard. The answer is “No”. It’s just a car not an experience for us. Our cars end up like our cell phones.
Most people “have to” run out and buy the newest, shiniest, powerful, $1500 cell phone every year that can do soooo much. And they only make calls, texts, and emails 90% of the time.
That’s not us. They point of my comment was that we can definitely afford the fancy name brand car that is twice as comfortable, twice as expensive, and lasts half as long. But, we revert back to our frugal ways because after three decades of saving and investing, we are having a struggle getting used to letting loose and freely spending our financial resources
P.S.- When we want comfort and a change of pace we drive our Ford Expedition Limited
When we replaced our last vehicle I really had my mind set on a luxury sedan such as a Mercedes or BMW etc, but the reviews on consumer reports were not favorable, and most require premium gas. We went to our comfortable spot and bought a Toyota Crown Signia. Pretty luxurious for us (built in their Lexus plant in Japan),with Toyota reliability.
Mine is the best car I ever owned. Premium gas, yes, but on the highway I get 40-43 mpg.
Last time I purchased new car I researched new and used and the average % the manufacturer’s model typically sold below MSRP. If I recall at the time that particular model new sold 6% below MSRP.
I visited dealer and test drove 3-4 days before end of quarter and we were also closing in on the end of model year.
I made an offer which was not accepted by the dealer and I left on friendly terms to “let me think about it”. I left my phone number and received a call on the last day of the month and advised my offer was now accepted. I assume they had their quotas/numbers to meet.
I was not in a particular hurry and had time on my side which provides a little leverage when timed correctly.
“I assume they had their quotas/numbers to meet.”
I have a friend that used to sell vehicles. He told me that the dealer pays a monthly fee (I believe it was to the manufacturer) for the vehicle the first of every month, thus the dealers have an incentive to get as many vehicles off the lot by the end of month.
Julie, we are in a somewhat similar state of mind. It’s about time to replace our Jeep. Last year I set aside a TIPS in my Roth, as I wasn’t prepared to buy and I wanted to ensure I’d have the funds. We don’t keep much in our taxable account, as we do a yearly withdrawal from our IRA and then have SS income.
My inclination is for an EV that has lidar based driver assist. The thinking is that as a septuagenarian, this technology is an appropriate expense. Lidar isn’t affect by rainfall (as distinct from optical sensors), and the driver assist capabilities on EVs have been dramatically improving. We are leaning towards a Rivian R2, 2nd batch which will include lidar.
a lot of good advice in the comments. The only thing I want to add is be willing to walk out if you don’t get what you want.
We never buy a vehicle the day that we decide which one to purchase. We always “sleep o it” (actually discuss the purchase) over night to make sure it is not a spur of the impulsive purchase, and to make sure the ultimate decision is not made under pressure from the sales person.
Julie:
Closing in on 70 also. Unlike you, I enjoy the car buying process, especially now that I have the means to pay cash. We last purchased new cars during the summer of 2023.I made perfectly clear to each salesperson that I was a cash buyer; and that I wasn’t paying extra for anything (i.e. extended warranties, paint protection, stain protection, etc.). Despite all that, I was still ushered into the finance and insurance guy’s room for a lecture I ignored.
Yup. Several years ago I bought a new car for my niece. They didn’t care that I was paying cash and that I did not need info on insurance and financing
I’m curious for those who paid cash/check for their new vehicle at a dealership, did the sales person insist on a credit check? Did you find a way to avoid having that done? They did a credit check when my wife bought her vehicle with a check. Our credit is frozen and is a small hassle to unfreeze it for the time needed. I know a credit check will be done anyway if you are going to finance.
No credit check when I bought my Subaru last year. I was talking to the sales guy off-and-on for a couple of months, because the model I wanted wasn’t yet available. Sometime in the process he looked at me and resignedly said/asked “you’re gonna pay by check, aren’t you?”. I responded positively. At that point he knew that he would make no money off of me with a financing offer.
I thawed my credit with my phone at the one reporting agency used by the dealer when signing the papers.
I bought a car a year ago for cash. I was leaving for Florida the next day. The salesman said I could give him a personal check which we did. He sent the permanent plates to me in Fl via FedEx. When we got back I told him I was surprised they took a personal check for that much. He said “we vetted you.”
No credit check when I paid cash. This was 7 months ago.
It’s been six years, but there was no credit check when we bought our last car. I was a little surprised that they accepted our personal check, especially because we were not local residents.
Thanks Nick and Dan. Beyond this, my hardest part is deciding on what vehicle to purchase.
Julie,
Lots of good suggestions in this thread. As you said, you are not interested in leasing. I have never leased one myself. Things to keep in mind are the opportunity costs vs. the time horizon, number of miles you put in a year and upcoming cyber taxis.
We have purchased our last two autos using the Costco new auto program. Once you have selected which car you wish to purchase you log in and enter that information. You are then contacted by a local dealer who has contracted with Costco. The price is preset so no haggling. The last time I purchased a car a friend decided to purchase the same car and he did not use the Costco program. When it was all said and done, he paid $200 less than I did. In my mind I received a better deal because the time and energy I saved not having to haggle was clearly worth more than $200.
Not all car models are Costco available. Nissan Z is one that you can’t purchase through Costco.
Agree ! Thanks, I didn’t know about Costco
I’ve tended to think it’s better to purchase a car that’s a couple of years old, but several years ago I was posted overseas and looking at a slightly used Mazda 6. As I was soaking on it I decided to swing by a dealer to see a new one; it was on my way so why not? Lo and behold it was the better deal, and that was just the economics, never mind the hassle factor. As you and Tom Brady have reminded me, my time and energy to spend on this has a value.
When I bought my niece a new Camry, the price of used and new was almost the same so bought new. She is still driving it 13 years later.
In 2019 I made a similar purchase except I used USAA buying service. I wanted a Kia Soul. Using the USAA site I found the closest Kia dealership and page with every car on their lot came up, along with the list price and my price. I picked the car I wanted and then picked the time and day I wanted to go down to do a test drive. I was driving out of the dealership after about 45 minutes, with most of that time doing finance paperwork. The best car buying experience I’ve had.
I brought through USAA several times, but unfortunately they ended the program a few years ago.
Thanks for mentioning the USAA service; it’s been so long since buying a car that I’d forgotten about it.
Julie, I’ll share how I’ve done it for the last few cars we’ve bought—and this goes back a while as we don’t buy them very often!
First step is to research models online and narrow it down to 1 or 2 or 3 that look most promising. We then go to the closest dealer(s) and do a test drive. That locks in our choice.
Then from home I send an email to the “internet manager” for every dealership for the chosen brand within about a 100 mi. drive. I tell them the model I want, the options packages, and the acceptable colors. I ask what they have in stock that fits these criteria and to email me their best “out-the-door” price.
Two cautions: First, they really want your phone number. I never give it and say I’ll do everything via email. That saves a bunch of time and provides a record in writing of what was said (and promised).
Second, insist on an “out-the-door” price, meaning with all taxes, fees, etc.
You will pretty quickly narrow it down to 2 or 3 dealers who are the most aggressive on pricing. I’ve usually ended with a bidding war of sorts between them, and it results in the best price.
Once the deal is done, drive to the dealership and pay for and pick up your new car. Make sure it’s exactly the one you bargained for, with the exact same options, etc.
Enjoy your new car!
Thanks . It’s important that it’s the same car! I did this for my niece and when we got there they made up a story that the car we had negotiated waa sold 5 minutes earlier to the owner’s daughter. (Lie). But I was exhausted and my niece needed a car. Today I would walk out .
This is pretty much how we’ve bought cars over the past 20+ years—research online, test drive at a dealer, shop online, pick up at a dealer. Once they actually brought the new car to our house and drove the trade-in away. Other than the test drive, we didn’t set foot in a dealership.
However, our most recent two purchases, in 2018 and 2020, were Audis. For the first one, we had to drive to Oakland (about 70 miles away) to find one to test drive. But then we ended up working with a salesman at the Sacramento Audi dealer, who found the car we wanted and had it delivered to Sacramento (about 20 miles away). There were only two cars in the entire state of California that were the color and options we wanted, and they were both in the LA area. We spoke to him on the phone on the Friday afternoon beginning Labor Day weekend, I paid an “earnest money” deposit with my credit card, and by Tuesday morning he texted me a photo and said, “Come and get your car.”
I was so impressed that when we bought a second Audi two years later, we went back to him again. This time he had to get the car we wanted from Oregon, but again, it just took him a few days.
He still sends greetings every year on our birthdays, and we recommend him to people who want to buy an Audi!
Our first retirement car. Tesla model Y with FSD. Best car ever. On first road trip from TX to MD. Keep under 400 miles a day. Do not plan on the road after 4:00 pm.
Was never a fan of Tesla nor in electric vehicles for this retiree. However 2026 Model Y with FSD was eye opening coming from a 20 year old minivan. I’m guessing most vehicle today will be better in every way than a 20 year old minivan, except price shock.
All wonderful suggestions here. The biggest decision, however, is what vehicle to buy because you’re likely going to live with it for a long time. I do a TON of research before buying. Believe it or not I enjoy the entire process, including dealing with the salespeople. I know, I know. What’s the matter with me? We had had a 10-year-old Toyota Highlander that we used to ferry around the various grandchildren and we loved it. But two years ago we bought a Kia Telluride and it’s been great. Just hope we don’t regret straying from Toyota. Good luck!
Ted though I am a staunch Toyota guy, the Telluride has a beautiful design. Know a few who own them and they love them. Just keep an eye on the oil pan. All of the owners had to replace the gasket after 4 years.
Thank you for the head’s up!
I replaced my 190,000-mile 2007 Honda CR-V in January with a 2022 Acura RDX which had 53,000 miles on it. I saved about $25,000 over the cost of a similarly outfitted new Acura. I replaced the Honda to get the latest safety features and for more comfort and reliability. Much of the money to pay for it came from the minimum distribution from my IRA. I suggest keeping an open mind on a used car since newer models are very dependable and safe and you can save a considerable sum. If you buy a dealer certified used car, you can even get a better warranty than the manufacturer offers on new cars. I am delighted with my purchase and wish you well.
I bought my 2017 RDX as a dealer car–she’s going strong at 92k+ miles, & I still feel like it’s new! Having the blind spot blinking lights safety feature is a game changer. While I’m pretty diligent with my signaling, mirrors, and head swiveling, it has saved me more than once. (You do have to engage signaling.)
We’ve owned a whole stable of new & used Toyotas, and a few used MBs…the next one I’d want to investigate is a worthy hybrid.
Thanks !
Last year, at age 73, I replaced a 10-year old car with almost 170,000 miles on it. It ran well, but was starting to have some parts simply wear out & need replacement. I opted to replace it, not refurbish one part at a time as wear and tear took its toll. This is similar to how I replaced cars before retirement, but at a lower number of miles on this car.
I used cash out of a taxable account and paid with a personal check.
Driving a lot in retirement means having a reliable car, rather than spending excessive time in repair shops’ waiting rooms while an older car gets fixed.
Beyond the financial and buying-hassle aspects, long-term vehicle reliability is a major consideration worth thinking through. It’s also worth looking into how user-friendly the digital interface is—some manufacturers bury commonly used features deep in submenus.
I avoid all hassle, I don’t hassle. I ask the dealer to give me his best price. If that number fits into my mindset I say okay. I do ask for two to three years of free maintenance which I easily get, but that’s it. I’m not wasting time shopping from here to there. The last time after the deal was closed I asked for a Mercedes coffee mug and he gave me a Yeti with the logo.
No haggling, no spreadsheets, no budgeting everything I do is designed to minimize stress even if it cost a bit extra which I never know anyway.
When it comes to cars I remember my father trying to make a living selling cars so I don’t care if the salesperson makes a few extra bucks off me in commission.
RQ,
Could you elaborate on “free maintenance?” Does that mean absolutely everything that would come up in three years or do you mean free oil changes, free tire rotations, and multi point inspection? Thanks.
I agree with you on all counts. Thinking about your father reminds me about my former boss being a good tipper in restaurants . While he was in college at a prestigious university, his father went bankrupt and my boss had to wait tables at the faculty club to pay his tuition. He worked very hard for miserly tips and never forgot it.
Stress? I don’t haggle, I don’t shop dealers and haven’t needed any spreadsheets,-I never have. I always manage to get the price 4% below dealer cost. A good perk for spending most of my career in the auto industry. 😉 Although, now that I am thinking, I must have been doing it wrong all these years! I’ve never received a coffee mug!
Do it on your terms. Buy what you want, do a little research ahead of time and do as much (or all) online. Its doable.
Since retiring I have purchased two cars for cash. The money came from a money market fund where I keep the cash for such purposes. Now what sits there is designated (in my mind) for a kitchen remodel. These days it replenished with dividends.
Thank you for your response. That’s the direction I was leaning towards. That’s also how I replenish my money market fund
If I were buying a car now, I’d pay cash for it. In your case, I’d use one of your taxable accounts. You don’t want to pay taxes just to take money out for a car, and you’re too young for required minimum distribution.
The dealer might give you a better price on the purchase if you take their financing, and you could consider doing that and then immediately pulling money out and paying it off. I’ve done that before, even though I had to deal with the annoyance of filling out the paperwork for a loan I didn’t want or need.
My wife and I have replaced two old cars in the last couple of years. We intended to pay cash for both, and did so for the first car at the family-owned, small-town dealer. They had no problem taking our personal check.
But for the second car, the corporate dealer in the city didn’t want cash, and offered a discount for financing so it could collect the lender’s kickback for originating the loan. So, we financed, then immediately paid it off. This was easy, since the financing was done by our credit card company. And, we discovered the dealer wouldn’t have taken our check any way, so the extra paperwork time was actually the fastest way to exit the dealership with our car.
We haven’t bought a car since 2020, but our usual approach has been to get preapproved by our credit union for an auto loan, which is pretty quick and easy, and then take the preapproval letter with us to the dealer. Sometimes the dealer beats the credit union financing, and sometimes they’ll say they can’t do better. We put the down payment on a credit card for points (usually $5K is the limit for that), finance the rest, and then pay it all off quickly.
Thank you. I will look into that.
I agree with Dr Lefty, and then within taxable accounts, whether to take funds from the money market or the brokerage depends on how much is in the money market. If it’s more cash than you would like to hold, use it. If not, take from the brokerage account.
Since the purchase isn’t today and you see coming, you could go ahead and move funds from the brokerage to the money market so it’s ready to go without an additional transaction.
Thank you.
Tesla is a much better car-buying experience than the legacy dealers.