4 Affordable, Reliable Cars for Retirees Living Only on Social Security
Living on a fixed income can be challenging, but as a retiree, it’s an unavoidable reality. It requires careful budgeting and planning to ensure you live within your means and don’t get yourself into a financial predicament. Those fortunate enough to have retirement savings or a pension will enjoy some wiggle room — but those who have to rely on Social Security benefits to fund their retirement will have to exercise both caution and discipline.
Be Aware: 10 Cars Baby Boomers Should Avoid Buying
Find Out: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Major expenses like a vehicle are especially important to get right, for obvious reasons. While affordability is the primary concern, focusing solely on the purchase price and neglecting factors like reliability and safety can land you in hot water later on. Having to deal with an unexpected repair expense, or even worse, an injury requiring medical care, can be extremely difficult to manage on a fixed income.
To help you make the right choice, here are four vehicles — both new and used — that experts say are affordable and reliable enough for retirees who are living only on Social Security.
Subaru Legacy
The Legacy is a mid-size sedan with an MSRP starting at $24,895 for the 2024 model year. Subaru is maybe best known for offering all-wheel drive as a standard option on its vehicles. The Legacy also comes with a number of great safety features, like automatic emergency braking and lane-keep assist. It’s also surprisingly roomy, making it a solid choice for those who plan on having passengers frequently.
Scott Lieberman, founder of Touchdown Money, specializes in helping people make good financial decisions. “My mom is retired and living on a fixed income, and she really enjoys driving her Subaru Legacy. She really likes that all-wheel drive comes standard, because she lives in an area where winters can get wet and snowy,” Lieberman said.
Explore More: 8 Best Luxury Cars for Wealthy Retirees
Honda Civic (Used)
Consistently ranked as one of the top compact cars by Kelley Blue Book, even a new Civic is fairly affordable, but buying one used offers the potential for even greater value for your dollar. The Civic is one of those cars that does everything well — decent space, good fuel efficiency, and they’re even fun to drive.
“I would highly recommend the 2016 or 2017 Honda Civic. These models have high reliability ratings, excellent gas mileage and initial MSRPs within a reasonable range that have depreciated over time. On average, they can be found at around $10,000 to $14,000, depending on mileage and condition,” said John Lin, owner of JB Motor Works.
Lexus ES (Used)
You might be surprised to see a luxury vehicle on this list, even used. Full disclosure: You’ll have to go farther back in model year to make this a feasible option, but if you’re willing to do so, you can easily pay less than $15,000 for a spacious and comfortable luxe ride. It also runs on regular 87-octane gasoline, so owning the ES won’t force you to buy more expensive fuel.
Lin pointed specifically to the 2012 model. “They offer premium features and comfort. Plus, being a few years old, they’ve mostly gone through their major depreciation, making them a good blend of affordability and luxury.”
Toyota Corolla
The Corolla and the Civic are often viewed as more or less equivalent. While the Corolla is not quite as highly regarded, its starting MSRP is close to $2,000 less than the Civic for the 2024 model year, making it a more affordable option if you want to buy new.
Patryk Doornebos, owner of Car Triple, said that the Corolla’s “long-standing reputation for durability and fuel efficiency makes it a top contender for retirees seeking reliability and affordability. The recent models offer advanced safety features and modern conveniences, providing a comfortable and secure driving experience.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 4 Affordable, Reliable Cars for Retirees Living Only on Social Security
