It is common to have more than one car at home. About 37% of households in the US own two cars, according to the latest data available from the Census Bureau.
However, if you are a retired person, you may wonder if it makes sense to have more than one car at home. You probably don’t have a commute anymore, and you may be looking to save costs where you can. Giving up a second car may sound like a waste of independence, but keeping that same car can drain your budget.
The second car was more difficult to justify
Cars are expensive – not just when you buy them for the first time. The average cost of owning and operating a car was about $12,000 by 2025, covering 15,000 miles per year, according to the Bureau of Transportation Statistics. That’s $1,000 a month.
Gas, insurance, maintenance and registration are all included. Although transportation is usually a large part of a person’s budget, the cost can be even more severe if your car is sitting on the road.
Retirement is changing the way people drive
It makes sense to have two cars when you are raising a family. Different school pick-up times, after-school activities and play dates will compete with different commutes. But when the older kids move out of the house and hit retirement, empty nesters may have a hard time justifying a second car.
Retirement can change other aspects of your driving, too. You may no longer drive to work, or you may move in retirement to a more accessible location. Delivery services, rideshare platforms and public transportation can also help reduce how much you have to drive.
If you and your spouse both have your own cars, check how often these cars are used at the same time. If not, occasional Uber trips for one partner can lead to big savings, or planning ahead so you don’t need a car at the same time can pay off.
The tradeoff is independence versus flexibility
For many people, cars represent freedom, privacy and safety. You have a few options if you can’t drive a car, and even though rideshare apps like Uber and Lyft make cars more accessible, some people prefer to drive themselves. Retirees may also feel uncomfortable depending on their families or rely on public transportation.
However, the tradeoff of more financial flexibility may be worth it. Consider what you can do with that extra $12,000 a year (and possibly more by selling a car): travel, eat out, invest in hobbies and more. Health changes, worsening night vision and slow mobility can make selling a second car an attractive option. The National Highway Traffic Safety Administration (NHTSA) notes that driving behavior and skills can change as people age, so it may be dangerous for some retirees to drive as they age.
