One Of The Worst Cars For Retirees Is A Tesla Model Plagued By Recalls

Buying a new luxury car is not a great idea for a retiree on a fixed income, especially during a time when the ongoing Social Security Administration shakeup could mean delayed payments for retirees–and the Tesla Model S isn't an affordable car, starting at about $82,000. Still, it isn't only the expensive car payments that retirees should be worried about. It's the defects that tend to pop up in these vehicles, forcing recalls when they're discovered. 

According to New Jersey-based law firm  Brady Reilly & Cardoso, LLC, millions of Tesla vehicles have been subject to recall since 2009. The Model S in particular has been recalled 39 times for reasons such as rear view cameras not working, torn or improperly deploying safety air bags, a misaligned front camera that prevented safety features (such as emerging braking) from activating, seat belts detaching, a hood latch problem, unstable seats, and failure of the car to stop at stop signs while in full self-driving mode. Tesla also recalled at least two million cars, including the Model S, in late 2023 after a National Highway Traffic Safety Administration investigation revealed that owners could misuse the Autopilot function.

Tesla addressed each problem caused by the recall, which varied from model year to year, by replacing the part or vehicle or through a software system update or physical recall, at no cost to the owner. Nevertheless, Tesla models had nearly 5.8 million recalls between January 2024 and March 2025, the most of any manufacturer in that same time period, AutoInsurance.com reported.

But that's not all. Due to Tesla CEO Elon Musk's political stances, including his controversial DOGE cuts to Social Security and the rest of the federal government, people started boycotting the Tesla brand. Meanwhile, Tesla dealerships were targeted by protesters, which had an impact on the brand's value. To put it this way: A car's value can quickly depreciate after you buy it, but while other used car prices went up by 3.7% year-over-year, Tesla cars went down 5.3%, per an iSeeCars.com study. As of July 2025, the Tesla Model S lost 12.3%, or $6,662 of its average value in the past year, the most value of any car, while the Tesla Model Y and Tesla Model X lost the second and third most money, respectively. 

A car that retains some of its retail value, like the BMW X3, can make it simpler to resell or trade in a vehicle if the need arises. Owning a car that plummets in value can be an obstacle for retirees facing sudden financial difficulties, such as a lengthy stay in the hospital that Medicare hardly pays for. 

Still, if reselling a car is not your top priority as a retiree for whatever reason, and proper research is done to make sure all recall issues are addressed, there might be a reason why the Tesla Model S would be a used luxury car worth buying. Besides the major discounted depreciation price, the Tesla Model S, like many other electric vehicles, or EVs, requires less maintenance than a gas-powered or hybrid vehicle, which means lower overall costs. In its first decade of service, it will cost $3,972 to maintain and repair a Model S, a figure that is $5,818 lower than the average luxury car, according to CarEdge. Also, there is only a 13.98% chance that the Model S will need a major overhaul in its first 10 years, a figure that is 14.98% better than other luxury cars.

But once again, a retiree might want to look at other EV vehicles on the market. That's because Tesla fixes can be pricey when compared to other brands. It costs an average of $1,137 per year to maintain a Tesla, per Consumer Affairs. This annual cost is lower than that of an EV BMW ($1,137) but higher than that of EV models from Honda ($585), Toyota ($602), and Ford ($1,059).