The rapid aging of the global population warrants multidisciplinary research on factors influencing the quality of life of older adults, with the goal of creating old-age-friendly cities and communities. We investigate whether lack of car ownership or “carlessness” is associated with reduced life satisfaction and increased depression – and hence degraded quality of life – among older adults and analyze whether depression mediates the carlessness-life satisfaction relationship. We use nationally representative data comprising more than 31,000 persons aged 60 years or more from India, a country experiencing rapid population aging as well as car adoption. We employ OLS regression along with mediation analysis using Structural Equation Modeling techniques (SEM and GSEM) to analyze the associations and mechanisms. We find that carlessness is associated with lower life satisfaction (measured using the SWLS) and higher levels of depression (measured using the CES-D scale) and that depression partially mediates the carlessness-life satisfaction relationship. Carlessness-related life satisfaction degradation is greatest among the oldest age cohort and women. Women are most vulnerable to carlessness-induced depression. Depression amplifies life dissatisfaction the most among relatively younger cohorts, men, and urban residents. Our study underscores the need for policy action to delink the car ownership and accessibility advantage connection for simultaneously addressing life satisfaction declines and mental health disorders among carless older adults. Since structural transformations in land use and transportation systems take time, policymakers should urgently recognize and address carlessness-induced depressive symptoms using medical or social support interventions to enable carless older adults to lead relatively more satisfying lives. Preventing transportation-related degradations in older adults’ quality of life is imperative for promoting transportation equity.