There come times in life when it is sensible to downsize my car? For instance, when your kids grow up and move out into homes of their own, many retired couples choose to downsize their home to a smaller unit or townhouse. This makes sense, as a smaller home is cheaper to maintain and keep up.
But what about your car? Are you driving a larger four-wheel drive for instance, and perhaps you’re considering downsizing my car to a small SUV.
In this useful blog, we’re going to explore some reasons why you might downsize your car.
Larger cars typically cost more than smaller models, and that makes them more expensive to insure. You’ll likely pay a high premium for comprehensive insurance for a large car, and this can add up to thousands a year, particularly if you’ve claimed on your policy and your premium has risen as a result.
Downsize my car to a smaller car will reduce your insurance premiums, as smaller vehicles are cheaper to insure for insurance companies.
Savings on Fuel
Due to their size and weight, and powerful engines, larger cars tend to consume more fuel than smaller cars. Especially if you’re driving in the city, as stop-start driving consumes more fuel than continuous driving like you’d do on a highway or freeway. A larger vehicle can cost you more at the pump, and this adds up over the years. By downsizing, you’ll notice a substantial reduction in your petrol bill, as smaller vehicles are more fuel-efficient due to their size and less powerful engines. You might even opt for a hybrid or electric vehicle, which are even cheaper to run.
More Savings – Maintenance
Another reason people downsize their cars is to save on the running cost of maintenance. Larger cars have bigger engines and bigger parts than smaller cars, and typically require longer maintenance work due to this. This can make the cost of scheduled servicing quite high.
Smaller cars also require ongoing maintenance to keep them in pristine mechanical condition, but the ongoing cost of maintenance can be much cheaper because they are smaller and therefore a mechanic can work on them quicker
Another reason for downsizing your automobile is due to changing lifestyle stages. For instance, when you’re raising kids you may want a larger vehicle, as you can easily cart around the kids, their friends, and gear to sports practice, or trips away, or wherever you need to go.
Once the kids have grown up and have cars of their own, you’ll find that the large family SUV or wagon is too much for your needs, in which case it may make sense to downsize to a small SUV, a sedan or even a hatch.
Many retirees use their retirement savings to buy a new, smaller car as soon as they’ve retired, trading in the old wheels for a new model. This is often the last car that they will buy, and as their life becomes more focused around the home and local hobbies, it makes sense to invest in a smaller vehicle.
There are a few reasons you might want to downsize your car. The main reasons tend to be savings – you’ll save money on insurance, fuel and maintenance costs. The other reason you could consider downsizing your vehicle are changing lifestyles – such as the kids growing up, getting cars of their own and moving out. Also, as your life becomes quieter and more focused on local activities, a smaller SUV makes sense.