The Vehicle You Should Sell Before Retirement To Save A Ton Of Money

Are you planning to retire in the not-too-distant-future? You might be preparing for a lot, but if your finances are not in order, then it is hard to be able to rest and relax. The average income for an American retiree can depend on how much Social Security you receive, if you have retirement plans paying out, and if you are living in a household with someone still in the workforce. One way you can definitely save money, though, is by selling any vehicle that isn't your primary mode of transportation.

That's according to a suggestion from Investopedia, which recommended that selling your second vehicle can be a great way to cut costs and save money before you retire, especially when it comes to expenses like filling up at the gas station, car insurance, upkeep and fix-it jobs, as well as tax on personal property. Plus, selling your second car or truck should be able to give you some extra cash on hand to start your retirement off on the right financial foot.

No matter what you do in retirement, you're going to have to figure out a way to do it on a fixed income. AARP noted in a 2022 report that close to 57 million working-age Americans did not have retirement account assets, with others are planning to solely rely on Social Security for making ends meet, which as of June, 2025, amounts to an average of $2,005.05 each month in benefit payments. That means that some expenses that you could afford while working might be out of your financial reach in retirement.

Ultimately, your lifestyle will determine how successful you are in retirement, so downsizing is a good start, especially if you do not need luxuries like a second vehicle. Check in your area for the buses, trains, and other options that you can utilize to your advantage. Many metropolitan public transportation systems offer senior discounts or passes that are significantly lower than the monthly cost of owning a second vehicle. Also, if you live somewhere that has everything you need within a few blocks, walking is a great way to get around town, as well as some exercise, all for zero dollars.

Not every retiree has the luxury of great public transportation or can walk to everywhere they need to go. Even if you are able to downsize by selling your second vehicle, you still might need a primary one to get where you are going, as well as fit your budget. There are lots of options for retirees to consider buying when it comes to a car, including a 2024 Toyota Camry that is under $28,000 or the Ford Maverick from the same year, which is an affordable truck under $25,000 that can fit most retirement lifestyles fairly well. Double check that your budget does not only have room for the purchase of your retirement vehicle, but that you can afford to fill it up with fuel, pay for repairs when necessary, and that your insurance fits within the scope of what you want to spend for the coverage you need. AutoInsurance.org made a list of the best auto insurance for retirees, with GEICO being the number one option for senior discounts and an average rate of $42 per month for retired drivers.