New vs. Used Car Calculator Compare 5-year total cost of ownership — including depreciation, financing, insurance, and re...

New vs. Used Car Calculator

Compare 5-year total cost of ownership — including depreciation, financing, insurance, and repairs — to find the smartest buy.

Standard

Same-Year

TCO Breakdown

New Car Price ($)

Used Car Price ($)

Down Payment (%)

New Loan Term (Months)

Used Loan Term (Months)

Annual Miles

2024 MSRP ($)

CPO Price ($)

Private Sale ($)

Fuel Economy (MPG)

Gas Price ($/gal)

Insurance ($/yr)

Maintenance & Depreciation Assumptions

New Y1 Depreciation (%)

Used Annual Dep (%)

Maintenance ($/yr after Y3)

$0

New Car: 5-Yr Cost

$0

Used Car: 5-Yr Cost

$0

Savings with Used

$0

Depreciation (Largest Cost)

5-Year Cost Breakdown

Why Depreciation Dominates

Depreciation is the #1 cost of car ownership** — often exceeding financing, insurance, and fuel *combined*.

Example: $35,000 new sedan: • Year 1: −20% = **$7,000 loss** • Years 2–5: −10%/yr = **$8,200 loss** → **$15,200 depreciation in 5 years** Compare to: • Financing: $5,200 • Insurance: $7,500 • Fuel: $6,600

✅ Used car advantage** → Buy after Year 1, avoid steepest drop.

When New *Might* Win

⚠️ Used isn’t always cheaper. Consider new if:

• Short ownership** (<3 years) — warranty coverage offsets repair risk
• Low-mileage driver** (<8K/yr) — slower depreciation, higher resale
• High-reliability model** (Toyota, Honda) — used savings smaller
• 0% financing available** — beats used APR spread (7.2% vs. 10.5%)

✅ Rule of Thumb**:

• Keep 5+ years? → **Used** (2–3 yr old, 24–36K miles)
• Keep 2–3 years? → **CPO** (Certified Pre-Owned, 1–2 yr old)
• Keep <2 years? → **New or Lease**

2025 Ownership Cost Benchmarks

Cost Category	New Car (5Y)	Used Car (5Y)
Purchase + Finance	$39,200	$29,400
Depreciation	$15,200	$9,400
Insurance	$7,500	$6,200
Maintenance	$2,400	$3,600
Fuel (60K miles)	$6,600	$6,600
Total	$70,900	$55,200

📉 Net Savings with Used** = **$15,700** → Even after +$1,200/yr insurance & +$400/yr maintenance

⚠️ Hidden Risk**:

• Salvage title: −40% value, higher insurance
• Lease pull-aways: Often high miles, excessive wear
• No maintenance records: Budget +20% for repairs

How to Use This Calculator

➡️ Standard Mode

Compare new vs. used of the same model (e.g., 2025 vs. 2022 Camry).

➡️ Same-Year Mode

2024 new vs. 2024 CPO vs. 2024 private sale — see if CPO premium is worth it.

➡️ TCO Breakdown

Adjust fuel, insurance, and maintenance for your area/driving habits.

Note: Uses 2025 avg. loan rates (new: 7.2%, used: 10.5%), 3% annual gas inflation, and AAA maintenance data.