Retire Earlier - Buy Used Cars!

 

Being able to retire in my mid-50's:

As I get closer to retirement in my mid-50's, people ask me how I got to this point. How can you do this? There are several choices that I have made over the years, but some stand out more than others. 

Best choice for planning retirement in my early 40's: Buying a used car instead of new.

Around my 40th birthday, I realized after years of living paycheck to paycheck that the only way out of this cycle was to NOT have a car payment! The people I work with are constantly congratulating others after their latest new car purchase.  I had to learn to no longer follow this trend! I had followed my coworkers' love of constantly having newer cars and had to find a way to break out of this cycle!

How to end having a car payment:

With four children, we definitely needed to have a minivan in the family. I researched which were the longest-lasting minivans available.  At that point these were the Honda Odyssey and the Toyota Sienna.  My goal was to find one that was a few years old, get it paid off quickly, in no more than 4 years.  

The Honda Odyssey was out of my price zone at that time. This was in early 2010.  It was during this time that the Toyota Matrix was getting bad press for out of control acceleration. Toyotas were less than popular and I got a great deal on a 2 year old Toyota Sienna! What a great choice!  I drove that van until 2017. The money I saved each month allowed me to invest more and keep the dream going!

In 2017 I bought a 2014 Sienna.  I paid it off in two years. Even now, in 2022 with 106,000 miles, it still runs great!  

For service: DON'T go to the dealer!

From my experience in talking to car dealer employee friends, car dealers make the most money on their service departments. Ask people who is a good small garage mechanic to take your car for service.  Don't be afraid to go to a mechanic with a sloppy looking office, even with parts and papers stacked up everywhere!  (That's what my mechanic's office looks like.) A good mechanic will be honest and charge you a fraction of what a dealer would for the same service. The first time I took my van for brake work at the small mechanic, my bill was almost HALF of what the dealer charged!  I might not be able to book an appointment online like I could at the dealer, but I can call on a Monday and have it in the shop by Wednesday. 

Right now, in 2022, is a terrible time to be buying a vehicle, new  OR used!

Right now in 2022, buying a used car isn't the same great deal as it was just two years ago. When car buying returns to normal, hopefully soon, buying a used vehicle will be a great financial choice.