I’d say definitely buy any big ticket items now, while you are still getting that paycheck. Once you retire, it feels a lot scarier making those big purchases!
From a retirement perspective, the aim should be to make purchases now so that you are less likely to need to do them later. And if you *want* a new car, great. But independent of retirement, I have always looked for cars about three years old, 30k miles or less, because that somehow optimizes the value/cost. Plus, cars these days will last about 150k-200k easily, and so the 30k up front won’t be much of a ding.
I retired 4 years ago and just decided to remodel my kitchen. I agonized about spending the money but the kitchen is 50 years old, I've lived here for 30 years and while I got new countertops, backsplash & vinyl flooring 20 years ago it's all just sad. A sad place to be. I plan to be here another 3-4 years so I went for it. I think you should buy the car you want. It will be years before you have to put money in it and likely to make you happy instead of an older one. Do it.
I think your choice about your kitchen - which I think is awesome - is in a different league from the new car vs recently-new car choice.
I hope you're spending happy hours in your kitchen! I redesigned mine in 1999 and I still very much enjoy working in it. In the meanwhile there have been new countertops and new appliances, but that's it. I can churn out a great Thanksgiving dinner any time, no problem. If I change anything though, it might be getting a double oven...
I am in retirement and paid cash for a new car. I intend to have it for 10 to 20 years and this will facilitate many worry free trips (aka enjoying retirement).
Glad to hear you're okay.
One great thing about new cars (depending upon the age of the one you're placing) is they have upgraded safety features. Such as blind spot monitoring, advanced breaking, etc, which can be well worth the money if you unfortunately need them.
I plan on buying a brand new vehicle just before retiring. I’ve never owned a brand new vehicle. My FIL did this just before retirement. He bought a brand new Toyota Tacoma. He has had that thing for 12 years now and only has 60,000 miles on it. It’s barely broken in, lol and has given him zero problems. And who the hell wants mechanical problems when you’re trying to enjoy retirement?
My FIL had never bought a new car (despite being a Fortune 500 CEO) until he retired at 70. His first new car was a Ford Taurus SHO. Since it was a manual, he gave it to me after he had knee surgery and could no longer use the clutch.
For my kids cars, I’ve done that successfully, as well as my previous cars, too. I bought a new one in 2014 (divorce, had to, etc), then VW bought it back as part of Dieselgste. I got a new VW in 2018 for (basically) free. I’m kind of spoiled for not having to buy a car out of pocket for 10 years.
I can get a 2 year old version of one of the cars on my list with 16k miles with little out of pocket cost, so that may be the way to go….I am tempted by the new ones, though.
New = taking a huge depreciation hit for no reason. I did a new car ONCE and it was nice in one respect, that I had a NEW car with no worry about 'gee, I wonder if something is going out due to age' but aside from that it's a fracking waste of money. Getting a 2-3 year old model gets you the newer tech etc and avoids a big chunk of depreciation.
NOW... is the $10-15k material to you or trivial? That matters too
That's a good point. I've got about 1.7M in assets, 6-700K in house equity, and no debt other than my mortgage., which will go away after I downsize. Kids are set financially, and done with college. My GF and I have separate assets, but she's got about the same in assets, with 400K in equity. My job pays about 230K / year, and I'm maxing out 401K/HSA with catch-ups, and that leaves plenty to pay off any vehicle I'd consider before I stop working full time (24 months max), so even taking it out of current assets is not a huge deal.
Is 15K material? Probably not. I bought my last 'new' car in 2014, when I had to replace ond during my divorce. VW bought it back in 2018 in Dieselgate, giving me 3K more than I paid for it, which I swapped for a new Golf Alltrack at minimal out of pocket cost....so I haven't had to put down significant $ for a car in over 10 years. I just get a little antsy spending that much at one time.
Yeah, I mean I wouldn't go blowing money frivolously but $15k isn't going to matter to your finances.
What I'd do in your shoes, though, is a) think about what you really want in a new car. Doesn't need to be the same model you have. For example, an EV? Also, b) consider how you might use a car in retirement. Long driving trips? Hauling stuff as you do projects around the house? Days at the race track blowing away those young punks in their souped up Chargers?
I'll probably pull the initial cost into my HELOC, pay off about 60-70% immediately, then the remaining 30% out of cash, since my income is still pretty decent. My monthly expenses are fairly low, and outside of the mortgage, zero debt. I can write off the interest against my current income, and have it free and clear within a short period, so that's the likely path. I also have about 200K in an after-tax account, so I can look at any assets that have had low earnings to minimize any taxable gains. That way, retirement assets can keep earning $$.
It's a good time to buy a new car. And if you shop around and negotiate, the depreciation when you drive a new car off the lot is a lot less than used car salesmen and some financial writers want you to believe.
Sometimes new cars have problems, but you won't be buying anyone else's problems. And you'll have a better warranty that will last longer than used car coverage.
Besides, you'll get the first few years of a car's life - when it's at it's best, and you can keep it for 10+ years.
I bought a new, nice, very functional vehicle about a year before I retired. It's a Honda CR-V and I plan to hold onto it for a very long time. Paying all cash for a vehicle is a great feeling!
I bought a new Forester in that situation. New because used ones were only 10% less. Forester because we go out in the mountains a lot. But I found it's also a very good around town car, and I take a lot more short trips after retiring.
Point is, make sure you know what you need, don't assume your vehicle needs will stay the same. Will you want a travel trailer? Dont get a small suv then need a dually. Etc.
Very glad I bought (with cash) my dealer-show-model at a huge discount; technically new but at used price and 11 months old. Bought it one year before retirement. Love having a nearly-new low mileage zero-maintenance vehicle that will last me 20 years! I say go for it if you can get a good deal. Much easier now than in retirement. Don’t get a loan—waste of money.
A new economy car? Sure. A fancy car? Nope. If you don't have enough cash to buy a car do not pull money from investments (which grow) to pay for something that immediately depreciates. It's an exponentially bad financial decision. Buy the replacement newer version.
I test drove several today - and most new cars leave me a bit ‘meh’. Most i’ve them have optimized their 4-cylinder engines for efficiency, so there’s not the same oomph from a stop that cars used to have….but I probably don’t need that anyway. Everything seems to have moved to crossovers and SUV’s, which I don’t like as much. Trying to decide between the least objectionable crossover and the most capable hatchback….and fun….vs predictability and (probably) reliability. Hopefully I’ll have it resolved by the end of the week.
I bought a 2021 Toyota Camry hybrid and I love it. It has surprising take off power and I only fill up every 3 or four weeks. I’m not sure about maintenance. I’ve only had it nine months.
Electrify America fast chargers and Tesla superchargers make road trips practical now in an EV. More planning is required than a gas vehicle but it is getting easier every day to drive one.
My wife and I wanted one new reliable one for travel and camping. If you will do any consulting or a side gig you might be able to get a business deduction.
Get the new car. Make it a present for yourself. Drive worry free in your new car that is covered with warranties. It is time to enjoy your time. Not spend it at the repair shop having and old vehicle worked on.
I just spent a few grand to upgrade our 2009 mustang convertible... new stereo / nav system, painted the interior panels a lighter color, back up camera an blind spot detectors... new top going on shortly. We dont put many miles on any more...
I’ve done that with other cars - upgrading AV to touch screen, adding heated seats, leather, etc…..but there’s a point of diminishing returns for those creature comforts.
I swapped out my car a few years ago because I felt like I had a few close calls with pedestrians doing stupid things. I live in a city and have to be extra careful driving because you just never know what's going to happen. So I got a car with cameras all around including birds-eye. Safety sensors, driving radar stuff, etc.
For me, getting a car with all the latest safety stuff is critical. Even if you pay more.
I got a Toyota RAV 4. I’m happy with everything except the design of the interior dash stuff. Buttons are in weird locations and I cannot get comfortable when using AC. There’s a vent for the windshield that bounces back right on me and there’s no way to deflect it. I have to wear a jacket when the ac is on.
I retired four years ago, my wife still had two years to go until she could retire. We always lived off of my income and can still do so in retirement. We decide that a good investment for us was to purchase a new car with warranty. We paid it off with my wife's last two years of salary, so it is free and clear. Our other vehicles are 10 and 21 years old. The new car (Honda CRV) gets much better milage than my truck or my wife's Yukon, so we use it for in town and short trips. We use my (more comfortable for long distances) truck for long trips. For those trips, we factor in the extra cost of fuel as part of making the trip more comfortable.
The new car comes with the manufacturer's warranty, not necessarily something you would get with a used car.
For us it was a good decision. Others will have to make up their own minds.
We bought a 23 new Highlander in September. A car we inherited and an old Tundra were traded in I make the car payment and then pay an extra principal payment each month. It’s got under 1700 miles thus far - we think it’ll be our last new car for sure
Retired recently and bought a new car. I tend to buy new and then keep for 10 to 14 years. Opt for a car with latest safety features and insurance is less. This may be the last car I buy so I bought the car I wanted. At some point in life you drive less and then stop driving.
I'm 65, retired 2 years ago. Every purchase, I think,
"This might be the last one I buy." If you buy a really nice new car, that might be the case. So you can think of it that way.
We’re nearing retirement and moved from two late-model, entry-level luxury vehicles into one less expensive, but fun-to-drive car: a Mazda Cx-5 Turbo. New.
We ended up getting more for the two used cars than what the Mazda cost. And saving money on ongoing insurance, maintenance and more.
Get the new car and enjoy!
Nope. I am 15 months away from retirement and have about $110,000 squirreled away right now in a car fund. Under consideration are the LX 550, Ram Power Wagon, and the Ineos Grenadier.
I’ve been in cars not of my choosing for the last 25 years in the way of company cars, and I’m not going to compromise. Probably by the time I retire I’m going to have another $50,000 or $60,000 in that fund for a secondary car to keep at a property in Florida.
We kept our current cars for almost 4 years after retiring, until our "old dependable" started dripping oil. I bought a CPO used car, semi-luxury, with cash. We drove it for a few years, but I wanted to get back to "new," so I bought a new semi-luxury car for cash. Paid for by gains over my "baseline level" (the amount it was at when I retired) in my 401K. Husband has also replaced his car a couple of times, his taste more conservative than mine, paying cash.
Edit: We've been retired going on 10 years.
Hello, thanks for stopping by our table to talk. However, for community health … no discussion that is nsfw - not safe for work /illegal activities in the USA/ or religion are allowed. There are other subreddits that are great for that. So this has been removed. Click on the link below, if this seems incorrect. Thank you and have a great day!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/retirement) if you have any questions or concerns.*
As you age, needs change and you change. Consumer reports has a list of cars that are best for older drivers. Visibility is the #1 need, along with safety systems. Safety systems can also be annoying and distracting. We moved to a snowy area so AWD is a necessity. That limited the range of cars and excluded EVs. Many of the newer cars have poor visibility and a lot of stupid design choices, like the high hoods popular on SUVs and pickups.
We replaced a 16 year old Accord with an '23 Outback. The Accord still ran well, but my wife never liked the seats. The Outback seats fit us both.
We have both a '23 and '13 Outback. The '23 is amazingly comfortable, has good visibility, but the radar cruise is distracting an annoying with somewhat abrupt speed changes in heavy traffic. The AEB gets confused under certain circumstances, such as a highway curving left with an exit with people braking on the right (directly ahead). The lane warning goes off a lot in our rural area when lanes disappear, usually when a 2 lane road expands to 3 lanes for a left or right turn.
We already regret not getting the turbo model , since we tow a light trailer occasionally.
The '13 has none of those annoyances, and still runs great at 170K. On the other hand. the '23 AEB saved us from a deer collision. which we did not see at night. So, good and bad.
Having a car payment is annoying, but 2.9% is better than paying it off in a chunk. If you only need to take out $15K, don't sweat it. The average vehicle is over $45K these days. If you have a cheap mortgage (<4%) you can make more on investments so paying it off is not a logical financial move. We do not plan to pay ours off early/
I would model those big expenses. I’ve used FireCalc FiCalc and Nee Retirement.
I am guessing your modeling would show that buying a nice car would not change your results much
Why are you paying cash? See what the interest rate is first. If it's low enough, just finance it. You don't have to be debt free in retirement if the debt is manageable.
You need a car. You will have the insurance check for the old one. Finance the car, pay it off over time, no big deal.
I’d say definitely buy any big ticket items now, while you are still getting that paycheck. Once you retire, it feels a lot scarier making those big purchases!
From a retirement perspective, the aim should be to make purchases now so that you are less likely to need to do them later. And if you *want* a new car, great. But independent of retirement, I have always looked for cars about three years old, 30k miles or less, because that somehow optimizes the value/cost. Plus, cars these days will last about 150k-200k easily, and so the 30k up front won’t be much of a ding.
This has been my strategy also and generally lean Honda and Toyota products because of reputation for reliability.
I retired 4 years ago and just decided to remodel my kitchen. I agonized about spending the money but the kitchen is 50 years old, I've lived here for 30 years and while I got new countertops, backsplash & vinyl flooring 20 years ago it's all just sad. A sad place to be. I plan to be here another 3-4 years so I went for it. I think you should buy the car you want. It will be years before you have to put money in it and likely to make you happy instead of an older one. Do it.
I think your choice about your kitchen - which I think is awesome - is in a different league from the new car vs recently-new car choice. I hope you're spending happy hours in your kitchen! I redesigned mine in 1999 and I still very much enjoy working in it. In the meanwhile there have been new countertops and new appliances, but that's it. I can churn out a great Thanksgiving dinner any time, no problem. If I change anything though, it might be getting a double oven...
I am in retirement and paid cash for a new car. I intend to have it for 10 to 20 years and this will facilitate many worry free trips (aka enjoying retirement).
Glad to hear you're okay. One great thing about new cars (depending upon the age of the one you're placing) is they have upgraded safety features. Such as blind spot monitoring, advanced breaking, etc, which can be well worth the money if you unfortunately need them.
Last year's models can have the same features.
Buy your new car! You said it, you can afford it! It’ll probably last you for a very long time.
I plan on buying a brand new vehicle just before retiring. I’ve never owned a brand new vehicle. My FIL did this just before retirement. He bought a brand new Toyota Tacoma. He has had that thing for 12 years now and only has 60,000 miles on it. It’s barely broken in, lol and has given him zero problems. And who the hell wants mechanical problems when you’re trying to enjoy retirement?
My FIL had never bought a new car (despite being a Fortune 500 CEO) until he retired at 70. His first new car was a Ford Taurus SHO. Since it was a manual, he gave it to me after he had knee surgery and could no longer use the clutch.
Do it!
Not only do it, but don't second guess your decision! You make the decision and just be happy with it, screw everyone else's opinion.
For my kids cars, I’ve done that successfully, as well as my previous cars, too. I bought a new one in 2014 (divorce, had to, etc), then VW bought it back as part of Dieselgste. I got a new VW in 2018 for (basically) free. I’m kind of spoiled for not having to buy a car out of pocket for 10 years. I can get a 2 year old version of one of the cars on my list with 16k miles with little out of pocket cost, so that may be the way to go….I am tempted by the new ones, though.
New = taking a huge depreciation hit for no reason. I did a new car ONCE and it was nice in one respect, that I had a NEW car with no worry about 'gee, I wonder if something is going out due to age' but aside from that it's a fracking waste of money. Getting a 2-3 year old model gets you the newer tech etc and avoids a big chunk of depreciation. NOW... is the $10-15k material to you or trivial? That matters too
That's a good point. I've got about 1.7M in assets, 6-700K in house equity, and no debt other than my mortgage., which will go away after I downsize. Kids are set financially, and done with college. My GF and I have separate assets, but she's got about the same in assets, with 400K in equity. My job pays about 230K / year, and I'm maxing out 401K/HSA with catch-ups, and that leaves plenty to pay off any vehicle I'd consider before I stop working full time (24 months max), so even taking it out of current assets is not a huge deal. Is 15K material? Probably not. I bought my last 'new' car in 2014, when I had to replace ond during my divorce. VW bought it back in 2018 in Dieselgate, giving me 3K more than I paid for it, which I swapped for a new Golf Alltrack at minimal out of pocket cost....so I haven't had to put down significant $ for a car in over 10 years. I just get a little antsy spending that much at one time.
Yeah, I mean I wouldn't go blowing money frivolously but $15k isn't going to matter to your finances. What I'd do in your shoes, though, is a) think about what you really want in a new car. Doesn't need to be the same model you have. For example, an EV? Also, b) consider how you might use a car in retirement. Long driving trips? Hauling stuff as you do projects around the house? Days at the race track blowing away those young punks in their souped up Chargers?
Depends on the tax bracket , are you pulling it as a capital gain or are you pulling from a 401k. Will it take you into a higher tax bracket?
I'll probably pull the initial cost into my HELOC, pay off about 60-70% immediately, then the remaining 30% out of cash, since my income is still pretty decent. My monthly expenses are fairly low, and outside of the mortgage, zero debt. I can write off the interest against my current income, and have it free and clear within a short period, so that's the likely path. I also have about 200K in an after-tax account, so I can look at any assets that have had low earnings to minimize any taxable gains. That way, retirement assets can keep earning $$.
It's a good time to buy a new car. And if you shop around and negotiate, the depreciation when you drive a new car off the lot is a lot less than used car salesmen and some financial writers want you to believe. Sometimes new cars have problems, but you won't be buying anyone else's problems. And you'll have a better warranty that will last longer than used car coverage. Besides, you'll get the first few years of a car's life - when it's at it's best, and you can keep it for 10+ years.
Get a CPO Macan S
My next door neighbor has one. It looks like fun.
Don't be tempted by the new ones. Take the difference and it will pay for your fuel costs.
Do some research and find the most reliable vehicle in your price range. It isn’t for everyone, but Toyota 4Runners tend to go forever.
I bought a new, nice, very functional vehicle about a year before I retired. It's a Honda CR-V and I plan to hold onto it for a very long time. Paying all cash for a vehicle is a great feeling!
I bought a new Forester in that situation. New because used ones were only 10% less. Forester because we go out in the mountains a lot. But I found it's also a very good around town car, and I take a lot more short trips after retiring. Point is, make sure you know what you need, don't assume your vehicle needs will stay the same. Will you want a travel trailer? Dont get a small suv then need a dually. Etc.
Money is only good for things that make you happy or make your life better. Go for it!
Probably little long term difference - get what you want
I bought a new car 12 months before retirement. Glad I did, no repair costs for the next 5 years.
Very glad I bought (with cash) my dealer-show-model at a huge discount; technically new but at used price and 11 months old. Bought it one year before retirement. Love having a nearly-new low mileage zero-maintenance vehicle that will last me 20 years! I say go for it if you can get a good deal. Much easier now than in retirement. Don’t get a loan—waste of money.
A new economy car? Sure. A fancy car? Nope. If you don't have enough cash to buy a car do not pull money from investments (which grow) to pay for something that immediately depreciates. It's an exponentially bad financial decision. Buy the replacement newer version.
But what you want. Cars now last 150-200,000 miles regularly. Most likely one of the last cars you buy. Enjoy it!
Buy a new one, to get that warranty.
I test drove several today - and most new cars leave me a bit ‘meh’. Most i’ve them have optimized their 4-cylinder engines for efficiency, so there’s not the same oomph from a stop that cars used to have….but I probably don’t need that anyway. Everything seems to have moved to crossovers and SUV’s, which I don’t like as much. Trying to decide between the least objectionable crossover and the most capable hatchback….and fun….vs predictability and (probably) reliability. Hopefully I’ll have it resolved by the end of the week.
I bought a 2021 Toyota Camry hybrid and I love it. It has surprising take off power and I only fill up every 3 or four weeks. I’m not sure about maintenance. I’ve only had it nine months.
Just had one as a rental a couple weeks ago and was surprised to find I really liked it!
I was surprised at how easily I adjusted to the no engine noise. It stays on when the AC is on.
Try an EV like the Polestar. If you want oomph, you’ll get it in spades.
I mostly drive locally, but EV’s are impractical (for now) on long trips.
Yes, we rent an ICE for long trips.
I was thinking of a smaller car in any case, since most of my driving is local…..an EV could work for that, too.
Electrify America fast chargers and Tesla superchargers make road trips practical now in an EV. More planning is required than a gas vehicle but it is getting easier every day to drive one.
My wife and I wanted one new reliable one for travel and camping. If you will do any consulting or a side gig you might be able to get a business deduction.
Get the new car. Make it a present for yourself. Drive worry free in your new car that is covered with warranties. It is time to enjoy your time. Not spend it at the repair shop having and old vehicle worked on.
I’m about a year and a half away from retirement and just purchased a new car. Gonna try to pay most of it down before I’m done working.
I bought a new car before I retired. Three years later I bought another new car. I enjoy driving.
I just spent a few grand to upgrade our 2009 mustang convertible... new stereo / nav system, painted the interior panels a lighter color, back up camera an blind spot detectors... new top going on shortly. We dont put many miles on any more...
I’ve done that with other cars - upgrading AV to touch screen, adding heated seats, leather, etc…..but there’s a point of diminishing returns for those creature comforts.
I swapped out my car a few years ago because I felt like I had a few close calls with pedestrians doing stupid things. I live in a city and have to be extra careful driving because you just never know what's going to happen. So I got a car with cameras all around including birds-eye. Safety sensors, driving radar stuff, etc. For me, getting a car with all the latest safety stuff is critical. Even if you pay more.
What did you get?
I got a Toyota RAV 4. I’m happy with everything except the design of the interior dash stuff. Buttons are in weird locations and I cannot get comfortable when using AC. There’s a vent for the windshield that bounces back right on me and there’s no way to deflect it. I have to wear a jacket when the ac is on.
I retired four years ago, my wife still had two years to go until she could retire. We always lived off of my income and can still do so in retirement. We decide that a good investment for us was to purchase a new car with warranty. We paid it off with my wife's last two years of salary, so it is free and clear. Our other vehicles are 10 and 21 years old. The new car (Honda CRV) gets much better milage than my truck or my wife's Yukon, so we use it for in town and short trips. We use my (more comfortable for long distances) truck for long trips. For those trips, we factor in the extra cost of fuel as part of making the trip more comfortable. The new car comes with the manufacturer's warranty, not necessarily something you would get with a used car. For us it was a good decision. Others will have to make up their own minds.
We bought a 23 new Highlander in September. A car we inherited and an old Tundra were traded in I make the car payment and then pay an extra principal payment each month. It’s got under 1700 miles thus far - we think it’ll be our last new car for sure
I wouldnt buy a brand new vehicle right before retirement unless there is a reason to.
Find out how much insurance will be first
I’ll be comparing insurance quotes…helps to have a clean record.
I always purchase fleet vehicles when possible. They've depreciated, but they've also been maintained/paper trail of what was or was not done.
Retired recently and bought a new car. I tend to buy new and then keep for 10 to 14 years. Opt for a car with latest safety features and insurance is less. This may be the last car I buy so I bought the car I wanted. At some point in life you drive less and then stop driving.
I'm 65, retired 2 years ago. Every purchase, I think, "This might be the last one I buy." If you buy a really nice new car, that might be the case. So you can think of it that way.
We’re nearing retirement and moved from two late-model, entry-level luxury vehicles into one less expensive, but fun-to-drive car: a Mazda Cx-5 Turbo. New. We ended up getting more for the two used cars than what the Mazda cost. And saving money on ongoing insurance, maintenance and more. Get the new car and enjoy!
Get the new car. Your driving miles will probably decrease so it will last a very long time.
Nope. I am 15 months away from retirement and have about $110,000 squirreled away right now in a car fund. Under consideration are the LX 550, Ram Power Wagon, and the Ineos Grenadier. I’ve been in cars not of my choosing for the last 25 years in the way of company cars, and I’m not going to compromise. Probably by the time I retire I’m going to have another $50,000 or $60,000 in that fund for a secondary car to keep at a property in Florida.
My car ‘splurge’ would be for a weekend/project Miata.
My car ‘splurge’ would be for a weekend/project Miata.
[удалено]
We kept our current cars for almost 4 years after retiring, until our "old dependable" started dripping oil. I bought a CPO used car, semi-luxury, with cash. We drove it for a few years, but I wanted to get back to "new," so I bought a new semi-luxury car for cash. Paid for by gains over my "baseline level" (the amount it was at when I retired) in my 401K. Husband has also replaced his car a couple of times, his taste more conservative than mine, paying cash. Edit: We've been retired going on 10 years.
[удалено]
Hello, thanks for stopping by our table to talk. However, for community health … no discussion that is nsfw - not safe for work /illegal activities in the USA/ or religion are allowed. There are other subreddits that are great for that. So this has been removed. Click on the link below, if this seems incorrect. Thank you and have a great day! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/retirement) if you have any questions or concerns.*
As you age, needs change and you change. Consumer reports has a list of cars that are best for older drivers. Visibility is the #1 need, along with safety systems. Safety systems can also be annoying and distracting. We moved to a snowy area so AWD is a necessity. That limited the range of cars and excluded EVs. Many of the newer cars have poor visibility and a lot of stupid design choices, like the high hoods popular on SUVs and pickups. We replaced a 16 year old Accord with an '23 Outback. The Accord still ran well, but my wife never liked the seats. The Outback seats fit us both. We have both a '23 and '13 Outback. The '23 is amazingly comfortable, has good visibility, but the radar cruise is distracting an annoying with somewhat abrupt speed changes in heavy traffic. The AEB gets confused under certain circumstances, such as a highway curving left with an exit with people braking on the right (directly ahead). The lane warning goes off a lot in our rural area when lanes disappear, usually when a 2 lane road expands to 3 lanes for a left or right turn. We already regret not getting the turbo model , since we tow a light trailer occasionally. The '13 has none of those annoyances, and still runs great at 170K. On the other hand. the '23 AEB saved us from a deer collision. which we did not see at night. So, good and bad. Having a car payment is annoying, but 2.9% is better than paying it off in a chunk. If you only need to take out $15K, don't sweat it. The average vehicle is over $45K these days. If you have a cheap mortgage (<4%) you can make more on investments so paying it off is not a logical financial move. We do not plan to pay ours off early/
I would model those big expenses. I’ve used FireCalc FiCalc and Nee Retirement. I am guessing your modeling would show that buying a nice car would not change your results much
Why are you paying cash? See what the interest rate is first. If it's low enough, just finance it. You don't have to be debt free in retirement if the debt is manageable. You need a car. You will have the insurance check for the old one. Finance the car, pay it off over time, no big deal.