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See what the numbers mean. Learn how the comparison works. Leave with a wider view of the decision.
Enter one new vehicle and one used vehicle. We adjust both for financing, sales tax, insurance, maintenance, equity built, and the opportunity cost of your down payment.
New Car vs Used Car is a decision-making model, not a financing calculator. It estimates the relative cost of each option using published rate and depreciation data plus clearly stated modeling assumptions.
⚠ Estimates only, not financial advice — see the note below the results for details. US only for now.
Estimate only — not financial, legal, or investment advice.
Each line already includes every adjustment above it — this isn't a list to add up. Compare using the bottom line only.
Estimates only, not financial advice. Loan payment uses standard amortization on the financed amount (price minus down payment, plus sales tax, per your city). This assumes sales tax is rolled into the loan rather than paid in cash upfront, and doesn't account for a trade-in, both of which shift the taxable base in some states — if either applies to you, treat the loan payment as approximate. Default APRs reflect Experian's Q1 2026 State of the Automotive Finance Market report: 6.39% average for new-vehicle loans, 11.43% for used. The new-car resale default reflects iSeeCars' 2026 study finding 41.8% average 5-year depreciation for new vehicles. The used-car resale default is an internal estimate — not tied to a named dataset — based on the general pattern that already-depreciated used vehicles lose value more slowly from that point on. Equity built values the vehicle's expected resale value minus any loan balance still owed at that point (if you're keeping the car for fewer years than the loan term), spread evenly across your ownership period. Cost of capital compounds the down payment monthly at your entered investment return over the ownership period. This model covers financing, insurance, maintenance, registration, and resale value — it doesn't include fuel or charging costs, which can differ between a new and used vehicle depending on age and efficiency.
New Car vs Used Car takes one new vehicle and one used vehicle and runs both through four stages to estimate the true monthly cost of each.
Both sides use standard loan amortization on the financed amount — price minus down payment, plus sales tax financed into the loan. Used-car loans typically carry a meaningfully higher APR than new-car loans, even though the loan amount itself is usually much smaller.
Both sides add annual insurance, maintenance and repairs, and registration/license costs. New cars generally cost more to insure. Maintenance is less clear-cut than it seems — AAA's new-vehicle data includes routine service, wear-item repairs, and a comprehensive extended warranty, which together often cost as much as, or more than, maintaining an already-depreciated used car.
Every vehicle you own eventually has resale value — we spread the expected resale amount evenly across your ownership period as a credit. Because used cars have already been through their steepest depreciation years, they typically retain a higher percentage of their (lower) purchase price than a new car retains of its (higher) purchase price over the same period.
A down payment ties up cash that could otherwise be invested. We add back the monthly opportunity cost of that capital, valued at the investment return rate you enter, to get each option's net true monthly cost.
A few terms worth knowing before you compare — this site is built to help you see the fuller picture, not just crunch numbers.
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A few more angles worth exploring — the numbers above are only part of the full picture.
No. New Car vs Used Car gives a directional estimate to help you think through a decision, not a substitute for a financial advisor or the actual numbers in a loan offer. Real deals vary by lender, dealer markup, vehicle condition, and your credit profile.
No. This model covers financing, insurance, maintenance and repairs, registration, and resale value, but doesn't estimate fuel or charging costs. Fuel economy can vary by vehicle age, model, and condition, so factor in your specific vehicles' MPG if fuel cost matters to your comparison.
We currently support a set of major US cities, using the same sales-tax dataset as our Lease vs Buy a Car calculator. Use the "View supported cities" button at the top of the page for the full list. This calculator is US-only for now.
6.4% for new and 11.4% for used come from Experian's State of the Automotive Finance Market report for Q1 2026, which put the average new-vehicle loan rate at 6.39% and the average used-vehicle loan rate at 11.43% — used-car buyers typically pay a meaningfully higher rate, largely because used loans skew toward lower credit tiers and older collateral.
Depreciation is steepest in a vehicle's first one to two years. iSeeCars' 2026 study found new vehicles lose 41.8% of their value on average over five years — but a used vehicle you buy at, say, four years old has already absorbed most of that early drop, so it depreciates more slowly (as a percentage of its own purchase price) from that point forward.
It seems like a car under factory warranty should cost less to maintain, but AAA's 2025 data for a new vehicle ($1,656/year at 15,000 miles) includes routine service, wear-and-tear repairs, one set of tires, and a comprehensive extended warranty — which together often outweigh what warranty coverage saves you. The used-car default of $1,520/year reflects reported 2024 data (via Cars.com, citing AAA and BLS figures) for a 5-year-old vehicle at the same mileage. Actual costs vary a lot depending on whether you buy an extended warranty or handle basic maintenance yourself — both fields are editable.
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Rate data: 2026