I own my vehicle outright, but she’s getting up there in age and mileage. Eventually, the cost of repairs won’t be worth it, so I’ve been saving. And when the day comes to buy a new car, I know exactly what my budget will be.
That’s because after not having a car payment for over a decade, I refuse to go back to one. Fortunately, my vehicle requirements are straightforward:
- Reliable, safe transit for my family
- Air conditioning (a necessity for Floridians)
- Decent fuel efficiency
- Sufficient storage for fishing gear
Nothing fancy, and that's on purpose: More Americans than ever now have $1,000 car payments. In a new retirement survey, nearly half of respondents said they’re deprioritizing or unable to save for retirement because their expenses — including car payments — take precedence.
Ideally, monthly expenses and retirement savings shouldn’t be viewed as an either-or scenario. Personally, I've automated my retirement savings — which means if my budget tightens, I don't even think about pulling back on those contributions as a means of offsetting rising costs.
But I’m also prepared to drive whatever I can afford to drive. If, by the time my current vehicle calls it quits, I have $10,000 saved, my next vehicle will cost $10,000 at most. While leather seats, panoramic moonroofs and smart displays are nice, retiring on time sounds nicer.
Let others keep up with the Joneses. In a few decades, you’ll thank yourself.
— Jordan Chussler, investing and banking editor 
