New vs Used Car
Compare financing, depreciation, insurance, maintenance, repairs, and resale value over the same ownership horizon.
New vehicle
Resale value should match the selected ownership horizon.
Used vehicle
Include expected repairs as well as routine maintenance.
About the New vs Used Car
A used car's lower purchase price doesn't automatically make it the cheaper choice once financing terms, insurance, maintenance, and resale value are added up — used-car loans often carry higher interest rates, and older vehicles typically cost more to maintain and insure per mile driven. This calculator compares the full ownership cost of a new and a used vehicle over the same holding period, including financing, insurance, maintenance and repairs, and expected resale value, rather than comparing monthly payment or sticker price alone. It's useful whenever you're shopping and trying to decide whether the higher upfront cost of a new vehicle is offset by lower operating costs and warranty coverage, or whether a used vehicle's savings hold up once total ownership cost is considered.
How this calculator works
The exact model, assumptions, and limitations used for this decision.
Ownership cost = down payment + total loan payments + insurance + maintenance and repairs − resale value.
Calculation steps
- Each vehicle loan uses fixed-payment amortization for its entered price, down payment, APR, and term.
- Insurance and maintenance are accumulated across the common ownership horizon.
- Expected resale value reduces total cost at the end.
Important assumptions
- Out-the-door prices already include tax and purchase fees.
- Loans remain outstanding for their full terms and have no prepayment penalty.
- Fuel is similar or excluded; use EV versus gas for materially different powertrains.
Frequently asked questions
Common questions about inputs, assumptions, and interpreting the result.
01Why compare total cost instead of payment?+
Longer terms can lower monthly payment while raising total interest. Ownership cost includes financing, operating costs, and resale.
02How should repairs be estimated for a used car?+
Review reliability history, mileage, inspection results, warranty, and known major-service intervals. Test a high-repair scenario.
03Where are taxes and dealer fees entered?+
Include them in each out-the-door price so both financed amounts are complete.
04How should resale value be estimated?+
Use conservative values for the future age and mileage at the end of your selected horizon.
05Does the tool include fuel?+
No. It assumes similar fuel cost. Add the annual difference to maintenance or use the EV-versus-gas tool for different powertrains.
06Can the new car win?+
Yes. Lower financing, insurance differences, warranty coverage, repair savings, and stronger resale can sometimes offset the higher purchase price.
07How does loan term affect the comparison?+
A longer term lowers the monthly payment but increases total interest paid and slows equity buildup, which the calculator captures by including the loan balance still owed if you sell before the term ends.
08Should I include the cost of a manufacturer warranty?+
Factor an unused new-car warranty's value into lower expected maintenance and repair costs for the new vehicle, and consider whether the used vehicle's remaining warranty, if any, should reduce its maintenance estimate too.