The super highway
Spend a nest egg wisely or grow old disgracefully ... try these for motoring into the sunset
ONCE upon a time, retirement used to be so simple.
You toiled until your 65th birthday, knocked off, collected your superannuation or the pension, took up bowls, golf, punting or home brewing and shuffled off this mortal coil a few years later.
It’s all so complicated now. You might hit 100 but your super could all be gone when you’re 75 and you might have to keep working until you’re 98.
One way or another, you’ll need a car — and not just any car, either. The car you buy when you retire has to meet specific criteria, regardless of what you spend.
As we slide inevitably into old age and decrepitude, we want a car that’s kind to our body and easy to drive.
Then again, you may wish to grow old disgracefully with a Nissan GTR chipped for 700 horsepower.
Let’s look at the big issues on the road to retirement. On average, a new car depreciates by 25-30 per cent in the first 12 months. In the first three years, it’s 50-60 per cent.
When you’re on a fixed income in retirement, no matter how much or how little that is, depreciation on a new car will tear up your hardearned capital.
So a late model used car will effectively put money into your retirement account compared with a new one.
You should be able to get a factory-backed used car warranty on Model X if you buy from that brand’s franchised dealers. That’s the safest place to buy a used car because the used stock is usually better quality, often sold new by the dealer and serviced by them as well.
Third-party aftermarket warranties are not worth the paper they’re written on.
If only new will do, that’s OK because some cars hold their value much better than others. Star performers include the Toyota Prado, LandCruiser 200 Series, HiLux and, in all probability, the new Fortuner.
Mazda’s 2, 3 and CX-5, Subaru Forester and Outback, Porsche Cayman, Macan and 911 also claim better than average retained values. There’s a very good reason why you see so many old blokes driving Toyota Camrys. They’re the automotive equivalent of cash and fixed interest investments — the rewards aren’t spectacular but they’re dependable and risk-free.
You can be pretty confident of minimal grief from Toyota, Lexus, Porsche, Honda, Mitsubishi, Mazda and Hyundai. Kia has the market’s longest warranty — seven years/unlimited kilometres — so we’re happy to recommend its cars as well.