Landscapeinsight- The average monthly Social Security benefit is $1,770.71, according to the SSA. Although Social Security is the only source of income for many older Americans, the program was never designed to provide a retiree with their whole income.
Purchasing an automobile may seem unachievable with such little financial wiggle room, but it doesn’t have to be. Abid Salahi, co-founder of FinlyWealth, said, “While buying a car entirely on Social Security income presents a unique financial challenge, it can be achieved with strategic planning and responsible budgeting.”
Here’s how to make what might be your final large-scale purchase if you’re a retiree living off of Social Security alone.
Forget That New Cars Exist
The lowest-priced new automobile available is the Nissan Versa, claims Kelley Blue Book (KBB). Starting price is $16,390. Your payment would still be more than $250 a month even if you could put down 20% of the whole amount (which you probably can’t), if you were to receive a loan at 6% interest (which you won’t), and if you didn’t have to pay sales tax, title, registration, delivery, or other costs (which you will).
CEO of Leverage Planning and financial and insurance specialist Rhett Stubbendeck remarked, “I understand the struggle of relying on Social Security for retirement.” “Jenny, one of my clients, was solely dependent on Social Security.
Purchasing wheels appeared to be a challenge, but we figured it out. Her choice of a dependable old automobile changed everything. It was reasonable and useful at the same time.
Focus on Reliability as Much as Cost in the Used Market
Stubbendeck brought up dependability and pragmatism. These are crucial since the cheapest car is typically the one that is offered at the lowest price in the used market. You’ll wind up getting a beater that will cost you more in the long run due to costly upkeep, repairs, and gas if you only pay attention to the sticker price.
Salahi advised, “Keep in mind that a lower initial purchase price doesn’t always translate to long-term savings.” “To reduce operating expenses, choose vehicles with low fuel consumption.”
Research, Research, Then Research Some More
The enjoyable aspect of buying a car is getting to shop for the vehicle of your dreams, but if Social Security is your sole source of income, you cannot afford that pleasure. You should instead look for an affordable car to buy.
“Careful investigation is essential,” Salahi stated. “Look at used car options within a reasonable price range, keeping in mind the cost of continued maintenance.”
With a J.D. Power reliability score of 91 out of 100, the 2013 Buick Verano is the most dependable used car under $10,000, claims US News and World Report. Although other renowned and reputable solutions are available for much cheaper, you should budget $9,851 for this purchase. An average 2013 Hyundai Sonata with great ratings costs only $7,306. At $7,927, the 2013 Hyundai Accent is also among the top 10.
Seek Assistance From Programs and Charities
Even while used Sonatas and Accents are less expensive than brand-new Versas, many seniors who rely solely on Social Security find $7,000–$8,000 to be prohibitively expensive.
Stubbendeck advised anyone in a similar situation to look into NGOs or local community programs that assist elders in need of reasonably priced transportation. Jenny discovered a lot by using one of these.
For instance, Maryland and Northern Virginia residents who meet certain requirements can receive free cars from Vehicles for Change. Working Cars for Working Families keeps an up-to-date state-by-state directory of groups that help those in need with down payments and even provide free donated cars.
Read More: April’s Social Security Benefits: Who Can Get $943 On April 1st?
Additional Initiatives Consist Of:
Www.Good News Garage.Org
CharityCarsFree.org
1-800-CharityCars, Cars4Heroes.org
Grants for automobile assistance are also available from state and federal government agencies to eligible applicants. For additional information, go to gov-relations.com.
Irving is the Chief Editor at the Landscape Insight. He lives just outside of New York. His writings have also been featured in some very famous magazines. When he isn’t reading the source material for a piece or decompressing with a comfort horror movie, Irving is usually somewhere in his car. You can reach Irving at – [email protected] or on Our website Contact Us Page.