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New vs Used Car Calculator — Which Saves More?

Compare the true 5-year cost of buying new vs used — price, depreciation, maintenance, insurance and financing, all in one verdict.

5-year true cost Depreciation modeled Clear verdict 100% free

Compare New vs Used — 5-Year Cost

Enter both options; the winner updates live.

🚗 New Car
$
%
🔑 Used Car
$
%
$
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🚗 New
$0
total 5-yr cost
🔑 Used
$0
total 5-yr cost
New: depreciation$0
New: interest paid$0
Used: depreciation$0
Used: interest paid$0
Used: extra maintenance$0
Winner saves you$0
Depreciation modeled at ~15%/yr (new) slowing over time; used cars depreciate slower from their lower base. Insurance differences excluded — used is usually cheaper to insure too.

Is It Cheaper to Buy a New or Used Car?

Usually used — a 3-year-old car has already absorbed the steepest depreciation (roughly 40–50% of its value) while still having most of its reliable life left. But the gap shrinks when used prices are high, used loan APRs are much worse, or the used car needs major repairs.

When New Makes Sense

  • Small price gap: if a 2-year-old model costs only 10–15% less than new, buy new.
  • 0–2% promo APR: cheap manufacturer financing can erase the used advantage.
  • Warranty matters: full factory warranty and the latest safety tech.

When Used Wins Big

  • 3–5 years old: the depreciation sweet spot — modern features, proven reliability record.
  • Certified pre-owned: manufacturer-backed warranty closes the risk gap.
  • Cash purchase: no interest at all maximizes the savings.

Whichever way you decide, finance it on paper first with our auto loan calculator — the monthly payment and total interest for both options.

Frequently Asked Questions

How much does a new car depreciate in the first year?

Around 20% in year one, and roughly 40–50% by year three. That’s why 3-year-old cars are the value sweet spot.

What is the best age to buy a used car?

3–5 years old: the steepest depreciation is done, reliability data exists, and modern safety features are present. Avoid the first model year of any redesign.

Are used car loan rates higher?

Yes — typically 1–2 percentage points above new-car rates. Factor this in; on long terms it meaningfully narrows the savings.

Is certified pre-owned worth it?

Often yes. CPO cars get multi-point inspections and extended factory warranties, usually for a $1,000–$2,000 premium over non-certified equivalents.

Do used cars cost more to insure?

No — usually less. Lower value means cheaper comprehensive/collision coverage, and older cars are often cheaper to repair.

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