new vs used car calculator guide
How to use this new vs used car calculator
The cheapest monthly payment is not always the cheapest car. Depreciation, repairs, insurance, fuel, loan interest, and resale value can change the real winner.
Steps
- Enter the price and financing assumptions for each vehicle.
- Add estimated insurance, maintenance, fuel, and resale value.
- Compare estimated total cost over your ownership period.
- Test conservative repair and depreciation estimates before deciding.
Calculation method
The calculator estimates financing cost and ownership costs for each option, then subtracts estimated resale value to compare net cost.
Example scenario
A used car can cost less upfront but more in repairs. A new car can have warranty coverage but higher depreciation. The better value depends on the exact vehicles and your ownership timeline.
Tips for a better estimate
- Use realistic insurance quotes for both vehicles.
- Do not ignore depreciation on newer vehicles.
- Budget for repairs if the used car is out of warranty.