In this piece, we will take a look at the 16 Best Fuel-Efficient Cars for Retirees To Buy in 2024. If you want to skip our overview of the global automobile industry, then you can take a look at our top picks of 5 Best Fuel-Efficient Cars for Retirees To Buy in 2024.
The automobile industry is one of the biggest and most important industries in the global market. This report by AZO Materials estimates the automobile industry to be valued at around USD2,810 billion. This market is predicted to grow bigger at a Compound Annual Growth Rate (CAGR) of 3.71% and reach a net value of USD 3,970 billion by the year 2030.
Currently, the Japanese car manufacturer, Toyota Motor Corporation (NYSE:TM) is leading the global automobile market sales for the fourth year in a row. A report by Fortune highlights Toyota Motor Corporation (NYSE: TM) to have sold 11.2 million units in 2023. The closest competitor to Toyota is Volkswagen, which sold 9.24 million units. The same report notes that Toyota Motor Corporation’s (NYSE: TM) dominance this year may be attributed to its sales in Hybrid cars. The Japanese car manufacturer saw a 34.1% rise in hybrid sales in 2023.
As we are noticing here, sales in car manufacturing are rapidly rising in the fuel-efficient hybrid car segment. The transition to electric vehicles (EVs) has accelerated due to significant investments made by numerous major automakers in EV infrastructure and technology. To address rising consumer demand and regulatory pressure to reduce emissions, companies like Tesla Inc (NASDAQ:TSLA), and established manufacturers like Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), and Volkswagen have been expanding their electric car offerings.
Fuel-efficient cars are in. The reason behind this is likely to be price-hedging by customers against oil. Consumers may be anticipating a rise in oil prices in the future and hence would rather make a one-time investment in fuel-efficient cars to prevent higher costs down the line. This report by Reuters highlights that December 2023 saw a 1.9% rise in Brent Crude Oil prices, the highest it has been since November 2022.
Our staff notes that the transition to EVs may require more infrastructural developments such as increased availability of maintenance crews and charging stations. While this is true, the shift towards at least hybrid cars is occurring amongst consumers. This may be because consumers, especially those looking for low maintenance and high fuel-efficiency cars appreciate the reliability of hybrid cars. However, in cases where a certain hybrid car may have a weak reputation in reliability (due to problems of breakdown being reportedly common), some ease-conscious consumers are likely to buy less fuel-efficient cars with high reliability.
Further market segmentation is important to divide a diverse group of cars into targetable segments. The report by focus2move segments cars based on different models, using factors such as age, geography, and comfort. Married customers are more likely to look for cars that have a spacious interior and reliable safety options, along with reliability and long-term value. Similarly, retirees looking to spend a moderate amount can look for budget-friendly options with low costs of maintenance. One of the best cars based on these needs, the KIA Carens, sold 260,227 units in 2023, reporting a 1.7% increase from last year.
Retirement is the start of a new phase in life, a period for leisure, exploration, and savoring the rewards of hard work. The number of retirees seems to be increasing, seeing how the value of retired workers receiving Social Security benefits went up from 34.59 million in 2010 to 48.59 million in 2022, according to this report by RetireGuide. An article by Autoflex Leasing already shows how retirees should choose fuel-efficient cars as their reliable travel companions, even though large SUVs and flashy sports cars may have their appeal. The appeal of EVs and hybrid cars is greater, given their lower maintenance costs. On the contrary, a standard combustion engine has an average maintenance cost of $0.09 for every mile traveled according to this report by Ford Motor Company (NYSE: F). Cars that use less fuel can save a lot of money at the gas pump, extending retirement savings.
Let’s now head over to the list of the best fuel-efficient cars for retirees to buy in 2024.
A fleet of cars is parked at a car rental company’s headquarters, symbolizing the company’s commitment to servicing its customers.
Our Methodology
Given the wide variety of available cars, retired people need to know what exactly they should be looking for when they go to a car dealership. Key considerations for seniors and retired officials include the fit of the car, ease of access, reliability, and overall comfort. When contemplating a new car purchase, retirees should weigh all the variables that can be affected by devoting retirement savings to this endeavor. Fasten your seat belts! To help you make an informed decision that best meets your needs and financial objectives, here are some methods to evaluate this decision: first, consider the effects of taking money out of your retirement funds; second, research other financing choices.
Our article divides cars based on three main factors. These factors take into consideration both the aspect of fuel efficiency and the fact that the car is going to be owned by a retired person. For our list, we have surveyed the highest quality sources we could find and then reported scores out of a total of 15, across the 3 metrics of fuel efficiency, seating capacity, and reliability. These sources include Car and Driver, Capital One Auto Navigator, Reliability Index, and Medium articles. We give them equal weightage in terms of deciding what car to buy. The breakdown of the scoring used in our rankings is as follows:
1) Fuel efficiency: miles per gallon as a standard for fuel consumption – scale (5 stars)
2) Seating capacity: Number of passengers that the car can fit – scale (5 stars)
3) Reliability: problems in equipment and maintenance – scale (5 stars)
The ratings of these different variables will be added to provide a total score of 15. The higher the score, the better the car is for retirees looking for a fuel-efficient car.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional looking for the best stocks to buy you can benefit from the wisdom of hedge funds and corporate insiders.
16 Best Fuel-Efficient Cars for Retirees To Buy in 2024
16. Nissan Maxima
On a slightly more sporty side, the Nissan Maxima provides a sedan option for retirees. It’s going out of production in 2024, so this might be your last chance to buy it.
Fuel Efficiency: It has an average of 30 miles per gallon on the highway and 20 miles in the city – 2.5 stars.
Seating Capacity: 5 passengers – 3 stars.
Reliability: 4.5 stars.
Total Rating: 10 stars
15. Acura Integra
The Honda Motor Company’s(NYSE: HMC) Acura Integra is a good fuel-efficient car to own if you’re looking for a sporty sedan. Free from bloaty and pointless styling, it has a simple, classy interior. It is one of the best fuel-efficient cars for seniors in 2024.
Fuel Efficiency: The Acura Integra has an average fuel consumption of 37 miles per gallon on the highway and 30 miles per gallon in the city – 3.5 stars.
Seating Capacity: 5 passengers – 4 stars.
Reliability: 3 stars.
Total Rating: 10.5 stars
14. Toyota Venza
If you’re looking for a good SUV that provides better visibility because of its higher seat, the Toyota Motor Company’s (NYSE: TM) Venza is the right fit for you. Even as the Venza enters its last years, its status as a top-notch hybrid remains.
Fuel Efficiency: In terms of fuel consumption, it goes at a reasonable 37 miles per gallon in the city. On a highway, its hybrid engine can ensure an average fuel consumption of 40 miles per gallon – 4 stars.
Seating Capacity: 5 passengers – 3 stars.
Reliability: 3.5 stars.
Total Rating: 10.5 stars
13. Volvo S90
Volvo S90 is one of the best fuel-economy cars for retirees to buy in 2024. Priced at $57,700, the Volvo S90 is an expensive buy but is more attractive for retirees given that it has an excellent reputation for safety and reliability. Its 2024 version comes with hybrid and electric options.
Fuel efficiency: The Volvo S90 reaches up to 22 miles per gallon in the city and 31 miles per gallon in the city – 2.5 stars.
Seating Capacity: 5 passengers – 4 stars.
Reliability: 4 stars.
Total Rating: 10.5 stars
12. KIA Soul
A cross between an SUV and a sedan, the KIA Soul has a starting price of $20,000. Hailed as one of the most affordable SUVs in America, it is a great budget option for retirees.
Fuel Efficiency: Averaging 33 miles per gallon on the highway and 27 miles per gallon in the city, the KIA Soul is a fuel-efficient option – 3.5 stars.
Seating Capacity: 4 passengers – 3 stars.
Reliability: 4.5 stars.
Total Rating: 11 stars
11. KIA Sportage
If you’re looking for an efficient SUV, look no further than the KIA Sportage.
Fuel Efficiency: Averaging 43 miles per gallon, the KIA Sportage comes with hybrid options and variants – 3.5 stars.
Seating Capacity: 5 people – 4 stars.
Reliability: 3.75 stars.
Total Rating: 11.25 stars.
10. Lexus ES 250
The Lexus ES is for those retirees who have no intention of compromising on luxury. In terms of starting prices, it is slightly higher at $41,321. Lexus, which is also a product of Toyota Motor Corporation (NYSE: TM), is for those retirees who are interested in modern cars and want to exude class.
Fuel Efficiency: Within the city, the Lexus ES 250 has an average fuel consumption of 25 miles per gallon, while on the highway, it operates at 24 miles per gallon – 3 stars.
Seating Capacity: 5 passengers – 4 stars.
Reliability: 4.25 stars.
Total Rating: 11.25 stars.
9. Toyota Camry
With a starting price of $26,420, the Camry was the highest-selling car back in 2022 and is still a great option for retirees. Every year, Toyota Motor Corporation (NYSE: TM) adds to the sleekness of its Camry models.
Fuel Efficiency: It averages 28 miles per gallon in the city and 39 miles per gallon on the highway – 3 stars.
Seating Capacity: 5 passengers – 4 stars.
Reliability: 4.5 stars.
Total Rating: 11.5
8. Volkswagen Jetta
Often an unsung hero in Volkswagen’s lineup and with a starting price of $21,345, the Volkswagen Jetta is a great sedan that is both stylish and comfortable for seniors and retirees.
Fuel Efficiency: Within the city, the Volkswagen Jetta averages 29 miles per gallon in the city and 42 miles per gallon on the highway – 4 stars.
Seating Capacity: 4 passengers – 3.5 stars.
Reliability: 4 stars.
Total Rating: 11.5 stars
7. Toyota Crown
A mix between an SUV and a sedan, the Toyota Motor Corporation’s (NYSE: TM) Crown is one of the best full-sized sedans for retirees in 2024. Its 2024 model also comes with a Sport Hybrid (HEV) model.
Fuel Efficiency: The Toyota Crown averages 42 miles per gallon – 4.5 stars.
Seating Capacity: 5 passengers – 3.5 stars.
Reliability: 4 stars.
Total Rating: 12 stars
6. Hyundai Kona
With a starting price of $24,045, the Hyundai Kona is a class act. As a mid-size electric vehicle (EV) that has gotten a recent glowup, it is a great option for retirees in 2024.
Fuel Efficiency: The Hyundai Kona will give you nearly 30 miles per gallon on a highway and 35 miles per gallon in the city – 4.5 stars.
Seating Capacity: 5 people – 4 stars.
Reliability: 3.5 stars.
Total Rating: 12 stars
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Disclosure: none. 16 Best Fuel-Efficient Cars For Retirees To Buy in 2024 is originally published on Insider Monkey.