From a savings and budgeting perspective, if you want to retire at a much earlier age, at 50, for example, you’ll need to create a well-founded financial plan to help you reach your retirement goals, start investing early so your retirement contributions have the chance to compound and develop income streams that will work for you during your lengthy post-retirement years.
As they continue to have the U.S. auto market in a stranglehold, SUVs are pretty hard to ignore. But that’s doesn’t mean you should buy one. High-end SUV models (Land Rover, Porsche Cayenne, BMW X series, Mercedes-Benz G-Class) command steep maintenance and part prices, but even popular brand models come with increasingly hefty purchase prices now.
With automakers inflating the market with bigger and more expensive SUVs and with the eventual changeover from internal combustion engine (ICE) models to advanced electric vehicles (EVs) on the horizon, things will get worse before they get better. Unless there’s a good reason for owning a SUV (e.g., getting a great deal or buying used for your growing family), save your money for your future goals.
2. Luxury Cars From Europe
Several factors inflate the maintenance costs of owning a luxury car, like a Mercedes-Benz, BMW, Audi, Porsche, Jaguar, Land Rover or Volvo. Depending on where you live, finding a specialist or authorized auto shop familiar with these brands might be a tricky proposition, and you’ll end up paying more for repairs as working on European cars often takes longer as the vehicles are more complex.
And then it’s simply difficult to justify owning a Porsche over a Toyota if you plan on sticking to a decades-long retirement plan: the maintenance cost of a Porsche over ten years is $19,168; the maintenance cost of a Toyota over a similar period is $5,445, according to CarEdge .
3. High-Performance Sports Cars
Let’s not talk about purchasing a Ferrari, Lamborghini, Aston Martin, Maserati, McLaren or Bentley. If you have the money for one of these beauties you’re A) well-aware of the ownership and maintenance costs involved in buying one, and B) not likely worried about carrying out a purposeful retirement strategy.
If your inner child says that forking out big bucks on a “lesser” sports car like an iconic 911 is a good idea, it might be time to throw a muzzle on that kid. The problem with owning a 911 isn’t necessarily reliability issues; the sportscar has been a well-built model of consistency for over 60 years. However, most sports cars are expensive to maintain and repair due to custom finishes and parts.
4. Pickup Trucks
Some American truck models are known wealth killers too. Modern trucks are far more luxurious and comfortable than their basic, traditional forebears. Customers that genuinely need and want trucks are placing a high demand on them and automakers are profiting off the demand by charging more for base models, additional amenities and performance capabilities, and high-end luxury and off-road-specific trims.
“Pickups are a popular choice for many practical reasons, but the cultural and social influence of pickup trucks in America shouldn’t be underestimated,” said Cars.com’s Detroit bureau chief Aaron Bragman. “There’s a certain cachet that comes with being a pickup truck owner, but at a steep price.”
5. Brands With Premium Pricing
One of the reasons why people buy luxury cars is the desire to stand out. Owning a status symbol like a BMW or a Mercedes demonstrates that you are wealthy and that you’ve “made it.” You know what screams success more than having a nice car? Retiring at the age of 50!
Some brands have the distinction for premium pricing on repair bills and insurance payments. For example, Lexus vehicles have earned a reputation for exceptional reliability and are some of the least expensive cars to maintain compared to other luxury brands. However, your car choice affects auto insurance costs, and Lexus, at an average cost of $189 per month or $2,273 per year, is the fourth most expensive make to insure, per MarketWatch’s rankings.
6. Electric Vehicles
According to Road & Track, body repairs for EVs compared to their of comparable ICE class and model year counterparts are negligible. But electric vehicles and hybrids are costlier to repair because of their unique battery systems, electric drivetrains and complex electronics that often require a mechanic specialized in EV repair.
“The modern digital architecture is so advanced, that systems beyond point of impact are being disrupted,” said Ryan Mandell, director of claims performance for Mitchell, a top provider of data and software to insurers and the collision repair industry. “Getting a car back to pre-loss condition is harder than at any point in history, and will only become more challenging.”
Never Buy New
Ideally, if you want to reach your goal of retiring at 50, you should never purchase a new car that will require a large upfront cost and/or significant monthly auto loan payments. According to the latest Cox Automotive/Moody’s Analytics Vehicle Affordability Index, a typical monthly payment sits at $753, and Edmunds recently announced that 17.8% of new-vehicle drivers are paying more than $1,000 a month.
It’s up to you to seek out what will be the most affordable car and make sure it will be reliable enough to last until you can drive it without worrying about car payments at all. For many Americans, however, the lure to buy bigger, more expensive cars, trucks and SUVs is ruining their retirement savings and sabotaging their chances of retiring early.
Generally speaking, if you want to retire at the age of 50, avoid buying any of the following six types of vehicles, which will either drain your savings before it has the chance to grow, or slowly bleed your wallet dry over time.
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