Revved for Retirement: Trade that Gold Watch for a Luxury Car

  • Ruud
  • 2020-10-03 11:32
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Revved for Retirement: Trade that Gold Watch for a Luxury Car

Big plans for retirement? Then you don’t want something that ticks on your wrist. You want something that vrooms out of your driveway! Now that you have time for the open road, why not buy your dream car?

There are several luxury cars on the market that are recommended for seniors. And the prices may not be as high as you think. Same with the car insurance that goes with it, thanks to all of the discounts available these days, especially the Allstate senior discount on car insurance.

Just like most everything else, the concept of retirement has changed dramatically in the past decade.


Retirement’s New Expectations
Traditional retirement age is 65, but that age has gone up in untraditional ways.

Baby Boomers continue to redefine society, including retirement. They’re in better health than previous generations so they’re living longer. And they want to keep working.

And in part because of healthy aging and a desire to stay socially connected, more people are taking their time transitioning into full retirement. Semi-retirement is the trend, with people working part-time after they “retire.”

Some stay in the same position or at least with the same company. But for many, semi-retirement creates a new chapter in their life in which they have the freedom to launch a new career doing something they really love.

Retirement’s New Opportunities
Traditional retirement monies have come from what is coined as the three-legged stool — Social Security, pension, personal savings. It’s only since the 70s that there have been additional options like IRAs.

So couple all of that with retirees’ supplemental income from semi-retirement and being in better health, and you have retirees who can enjoy life more and longer. If you can pursue the vocation you’ve really wanted all your life, why not reward yourself with the luxury car that has always caught your eye as well?

Dream Cars Can Become a Reality
Now, no one will ever rival the retired three-time Formula One world champion Nelson Piquet senior’s unique car collection, but you have to start somewhere! And apparently a lot of seniors are, and for good reason.

Seniors are Re-Thinking Luxury Cars
Retirees prioritize safety and drivers assistance features, and luxury automakers have responded. The consumer response has been so good that luxury car buying has become untraditional too.

Experts report that while the majority of seniors who buy luxury cars still favor American automakers, they are branching out to buying non-domestic brands, such as Porsche, BMW, and Lexus.

The best luxury cars for seniors include:

Acura RLX
Audi A8
BMW 740i
Buick LaCrosse
Mercedes-Benz E-Class
Volvo S90

Prices on Luxury Cars are Dropping
You no longer have to be a millionaire to drive in high style and comfort. For example, that top-listed Buick LaCrosse? It starts at just under $30,000.

Thanks to modern technology, modern luxury cars are more affordable because car companies can automate more of their manufacturing processes and pass those savings on to you. Technology has also resulted in formerly exclusive features now available for a small premium.

Also thanks to technology, retirees have the advantage to negotiate their luxury car price.

You’re no longer at the mercy of having to check out what you want on a car lot and relying on a salesperson to get you a good deal. Instead you have the world at your fingertips and can view cars online, research pricing, and get recommendations from numerous sites to be in the best position to negotiate when you hit that showroom floor.

Experts advise buying a luxury car new instead of used. The adage that a second-hard car carries an element of risk is heightened with a luxury car, as repair costs will be higher.

But if you feel you’re going to save some money going the pre-owned route, here are some important tips for buying a used luxury car.

Car Insurance in Retirement
The older you get, the more you realize that life is not black or white. There is a lot of gray in between, and that goes for car insurance, too. The bad news is that premiums rise, but there’s also good news about all of your options to help offset that.

The Price of Luxury Car Insurance
Your luxury car is higher quality than a standard vehicle. The price is usually higher too. These factors mean your luxury car insurance is often more expensive as well, an average of eighteen percent

For example, the best luxury car for seniors that has the cheapest insurance is the Lexus ES model. The range is from $1,300 to $2,400 annually.

The Challenge of Senior Car Insurance
Rates start going up at after age 65. Now while what you’ll pay is nowhere near what you did at the start of your driving career in your late teens and early 20s, it’s a bit higher than what insurance companies consider a driver’s most stable years–their 30s, 40s, and 50s.

You have the driving experience and perhaps even a good driving record. Why the increase?

Insurance companies consider seniors to be a higher risk. Older drivers are considered to be more accident prone for various reasons, including diminished vision, diminished hearing, slower reflexes, more health conditions and the side effects of prescription medications taken for those conditions.

Plus when older drivers are in an accident, they are more prone to injury and to a more severe degree. This makes seniors medical costs higher, which increases the claims costs for insurance companies.

Good News about Senior Car Insurance
Discounts can do a lot to offset prices. As we noted, Allstate offers the best discounts for seniors, but some companies also offer a discount that could be up to ten percent for taking a mature driver safety course.

And just for being a mature driver, some companies will give you a ten percent discount. Don’t forget to ask about senior discounts regarding your AARP and AAA memberships.

As for specific advantages to being a retiree, ask about a retiree discount. Yes, some car insurance companies actually do that. It could save you up to ten percent. You’ve also most likely lessened your commute and could be eligible for a low-mileage discount. That’s another five to ten percent off your rate.

Each company has a different price, too. So it definitely pays to shop round. Getting car insurance quotes online is a good first step. Then follow-up with each insurance agent.

To get you started, look into Chubb, rated best for seniors who are luxury vehicle owners. Also recommended as best for seniors overall is The Hartford (AARP’s car insurance company), as well as Amica, and then USAA for veterans, Farmers Insurance Group for multiple policies, and State Farm for road trip travelers.

Best Road Trips for Seniors
After you acquire the best luxury car for a retiree, where are the best places to drive? Here are a few options for road trips:

Highway 1, California (If you time it right, enjoying all the good stuff around Pebble Beach could include Monterey Car Week)
Seward Highway, Alaska
Jasper National Park, Canada
Route 66 (California to Chicago)
Rocky Mountains, Montana
Route 1, Maine

Don’t forget your AAA and AARP discounts for lodging, restaurants, museums, zoos, and other activities while you’re checking off this bucket list. You want to drive and live in luxury, but as you’ve learned, you don’t always have to pay full price for it!

Karen Condor is a travel and insurance writer with the car insurance comparison site, CarInsuranceComparison.com.

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