Is Downsizing to One Car in Retirement the Right Move for You?

We decided to downsize to one car in retirement. You might be considering this as well. There are pros and cons to living with a single car. This comprehensive guide will help you make an informed decision if you are considering downsizing to a single vehicle.

If you prefer, you can listen to a "podcast style" version of this blog post:

According to AAA's 2024 Your Driving Costs study, the average annual cost of owning and operating a new vehicle is $12,297, or approximately $1,025 per month.

My Exact Reasons for Downsizing to One Car in Retirement

Here's why downsizing to one car in retirement was the right thing to do for us. Your reasons might differ, but I wanted to share what my thought process was.

One of Our Vehicles was High Mileage

I drove a two wheel drive Ford F150 as my primary vehicle. It was approaching 140k miles and I knew I was reaching a point where the truck was going to get more expensive to maintain (while its reliability was lessening).

Ford F150

Plus, the area we relocated to gets quite a bit of snow in the winter. This meant my truck would be essentially useless for at least three or four months a year.

Our other Vehicle Was Small (a Honda Civic)

Our other car was only a couple of years old, but small and only front wheel drive. We really needed an all wheel drive vehicle given the winter driving conditions. I really loved the Honda Civic, but if we were going to have one car it needed to be bigger and all-wheel drive.

My New House Has a Small Garage Too

The house we relocated to has the typical small two car garage. When we had both vehicles in it there was no room to do anything. I knew I needed a workbench, a place to work on my mountain bikes and some general storage. There was no way I'd have room for that with two vehicles (one being a full size truck).

What We Decided to Do

My wife and I decided to sell both vehicles and get an SUV. In this case, a new Honda CRV. It does everything we need it to do, has ample storage room and so far (knock on wood) 40k trouble-free miles.

Honda CRV

Financial Impact of Downsizing to One Car

One of the most compelling reasons to downsize to a single vehicle is the potential for significant financial savings. According to the AAA Your Driving Costs 2024 report, car ownership expenses have risen dramatically in recent years.

Annual Savings from Eliminating a Second Car

Expense CategoryPotential Annual SavingsNotes
Vehicle Financing$3,600 - $8,856Eliminates car payment if you're financing a second vehicle
Insurance$1,000 - $2,000Varies by location, driving record, and vehicle type
Fuel Costs$1,500 - $3,000Based on average annual driving of 11,500 miles
Maintenance & Repairs$1,000 - $1,500Higher for older vehicles
Registration & Taxes$300 - $800Varies by state and vehicle value
Depreciation$3,000 - $5,000The "hidden" cost most owners don't consider
Total Potential Savings$9,400 - $21,156Individual results will vary based on vehicle type and usage patterns

These savings can significantly boost your retirement security. According to financial experts, every $10,000 in reduced annual expenses is equivalent to having approximately $250,000 more in your retirement portfolio (using the 4% withdrawal rule).

Environmental Impact of Reducing Car Ownership

Besides the financial benefits, reducing the number of vehicles your household owns has significant environmental advantages:

Environmental Benefits of One-Car Households

  • According to the EPA, a typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year
  • Reduces resource consumption for vehicle manufacturing
  • Decreases demand for parking infrastructure
  • Encourages more efficient trip planning and alternative transportation use
"Transportation accounts for 28% of total US greenhouse gas emissions as of 2022, making it the largest contributor to America's carbon footprint."
Environmental Protection Agency, 2024

What I Like About Having One Car

I like having room in my garage to work on things and to gain more storage. Before I was continually backing one car out to be able to do anything meaningful in the garage. Of course, having an all wheel drive car in the winter has been a big plus as well.

one car in garage

Additionally, having one car has simplified our lives in ways I didn't expect:

  • Reduced mental load of tracking maintenance schedules for multiple vehicles
  • Less time spent on vehicle cleaning and maintenance
  • Simplified parking decisions when traveling together
  • Environmental satisfaction from reducing our carbon footprint
  • Better coordination of schedules with my spouse, leading to more quality time together

What I Don't Like About Having One Car

This section should have probably been titled "I miss my truck." While I can load my fly fishing pontoon boat and mountain bikes in the Honda CRV, having my truck would have made this easier.

Occasionally, there are times when a second vehicle might have been nice to have due to some scheduling conflicts. For example, I've wanted to go fishing or maybe golfing on a day when my wife has an appointment.

Other challenges we've faced include:

  • Occasional scheduling conflicts that require more planning
  • Limited space for larger items compared to having a truck
  • Need to coordinate errands and activities more carefully
  • Loss of independence when the single vehicle needs major repairs

Decision Framework: Is One Car Right for Your Retirement?

Key Questions to Ask Yourself

  1. How often do you and your spouse need to be in different places at the same time?
    If this happens frequently, a one-car arrangement might be challenging.
  2. Do you have reliable alternative transportation options in your area?
    Consider public transit, ride-sharing services, or walkable amenities.
  3. What's the financial impact of maintaining two vehicles vs. one?
    Calculate the total annual cost of your second vehicle.
  4. Do either of your current vehicles have specialized uses that can't be replaced?
    Like a truck for hauling or an off-road vehicle for particular hobbies.
  5. What are your emergency transportation needs?
    Consider how you'd handle situations if your one car is unavailable.

Pros of One Car

  • Significant cost savings on insurance, maintenance, and registration
  • Reduced environmental impact
  • More garage space
  • Simpler vehicle maintenance schedule
  • Encourages more joint activities

Cons of One Car

  • Potential scheduling conflicts
  • Loss of independence
  • Vulnerability if the one car breaks down
  • May need to compromise on vehicle features
  • Could limit spontaneous activities

Transportation Alternatives for Seniors

If you're considering downsizing to one car or even going car-free, it's important to know what transportation alternatives are available to you:

Transportation OptionBest ForCost ConsiderationsAvailability
Ride-sharing Services
(Uber, Lyft)
Occasional trips, medical appointments, airport transfers$10-25 per local trip typicallyAvailable in most urban and suburban areas
Senior-Specific Ride Services
(GoGoGrandparent)
Seniors without smartphones, those needing extra assistanceStandard ride fees plus $0.19/minute concierge feeAvailable wherever Uber/Lyft operate
Public TransportationRegular, predictable trips in urban areasSenior discounts often 50% or more off standard faresLimited to urban/suburban areas with established transit
Senior Transportation ProgramsMedical appointments, essential errandsOften free or donation-basedVaries by location, check with local Area Agency on Aging
Car Sharing Services
(Zipcar, Getaround)
Occasional need for a vehicle for specific errands$8-15/hour or $60-100/day plus membership feesPrimarily in urban areas

Will I Save Money by Having One Car?

The obvious answer is yes. You'll save money on gas, insurance and vehicle maintenance. How much you'll save will vary based on where you live and other factors. For example, a high-end BMW probably costs more to maintain than a Ford.

The Hidden Costs of Car Ownership

Many people underestimate the true cost of owning a car because they focus only on the monthly payment. But according to the Bankrate Hidden Cost of Car Ownership Study, the average hidden cost of car ownership is $6,684 per year beyond the purchase price.


By eliminating a second vehicle, most households can expect to save between $5,000 and $10,000 annually, depending on the type of vehicle and local costs.

Downsizing to One Car in Retirement: Key Considerations

If you're thinking about going down to one car in retirement, here are a few points to consider before you downsize to one car.

First, you need to think about your daily routines. Being a one-car family works when you're not commuting to separate jobs. But what if one of you wants (or needs) to work part-time in retirement? That means someone is stuck at home while the other is working.

"We decided to go down to one car after realizing we rarely used both at the same time. It's been a year, and we haven't looked back!"

Another thing to consider is your health and mobility. When you get older, your transportation needs will probably change. For example, my dad (who is 85) drives much less when compared to how much he drove at 65.

Other Lifestyle Factors That Influence the Decision

Your lifestyle is key in deciding if one car is enough for retirement. Do you live in a big city? Do you live out in the country where driving long distances is the norm? You just have to realize that if your spouse needs to drive long distances for services, shopping, etc., you may be stuck at home with no transportation.

Activity Levels and Social Life

Consider your daily life. Do you and your partner do things alone? If yes, sharing a car could be hard. But if you like doing things together or can plan around each other, one car might be enough. My wife and I do most things together, so one car has been no big deal. But, for some couples, one car could be a big deal if they do many things separately.

Location Assessment Checklist

Consider these factors about where you live:

  • Walkability: Are essential services within walking distance?
  • Public Transportation: Is there reliable public transit nearby?
  • Weather: Do seasonal conditions limit mobility certain times of year?
  • Healthcare Access: How far are your medical providers?
  • Social Activities: Where are your primary social and recreational activities located?

Making the Transition: Practical Steps

Have you decided to downsize to one car in retirement? Here are some tips to make this transition smoother.

If You Have To Choose One Car to Keep

When deciding which vehicle to keep, consider these factors:

  • Reliability: How old is the car you plan to keep? Does it have a good long-term track record of reliability?
  • Fuel efficiency: Lower fuel costs can significantly impact your budget.
  • Maintenance costs: Research potential repair expenses for each car.
  • Lifestyle fit: Does the car meet your current needs?

Living with one car might feel a little challenging at first. But many retirees are happier once they do it. It can reduce stress, save money on vehicle maintenance, and simplify your life.

Emergency Transportation Plans

What if you need your car and it's not working? Do you have friends or family that can help you? If not, do you have access to public transportation?

It's important to have a backup plan for transportation emergencies. Consider these options:

  1. Research local rideshare services and save their contact information
  2. Explore senior transportation programs in your community
  3. Consider joining AAA or similar service for emergency towing and transportation
  4. Identify neighbors or community members who might be available to help
  5. Keep taxi service numbers handy if rideshare services aren't available in your area

When One Car May Not Work

Downsizing to one car might be wise for many retirees. But, it's not always the best choice.

Rural living also makes a two-car household essential. With long distances and few transportation options, an extra car could be crucial. It keeps you mobile, even when one car is in the shop or you have different appointments.

rural area road

Active retirees might also need two cars. If you and your partner have different hobbies or volunteer roles, managing with one car is hard. Having two cars might be more convenient, even if it costs more.

  • Caregiving responsibilities
  • Frequent long-distance travel
  • Living in areas with extreme weather

There's no single answer for everyone. While saving money by downsizing is tempting, your lifestyle needs to be considered.

Conclusion

Downsizing to a single car in retirement doesn't have to be a tough decision. You just need to think about all of the scenarios where only one car might be a problem, particularly if you have a spouse that might be using the car as well.

Here's some food for thought - now that you are retired (and I'll assume your spouse is as well if you have one) my experience is one of your two cars gets driven much more than the other. Typically, we like to drive our newer car far more than our older one. So automatically one car gets driven 75% of the time and the other 25% of the time. Keep that in mind when you make your decision.

Why have a car that primarily sits in the garage that you have to license, maintain and keep insured? I preferred to simplify my life with a single vehicle in retirement. I prefer to save some money, while simplifying my life. So we went with a single vehicle. Good luck as you make your decision.

About the Author

Retirement lifestyle expert and advocate for simplifying life in your golden years. Enjoys fly fishing, mountain biking, and spending quality time with family.