Is the used car actually cheaper?

Put in the two prices and your loan, and we add up what each car costs you over five years: payments, fuel, insurance, maintenance and the value it loses along the way. Open the advanced settings to change the assumptions we made for you.

What each car costs per month, on average

New car

Loan payment$0

Insurance$0

Fuel$0

Maintenance$0

Total per month$0

Used car

Loan payment$0

Insurance$0

Fuel$0

Maintenance$0

Total per month$0

What you've paid out, year by yearNew carUsed car

How this is worked out

The chart adds up cash out the door: the down payment, then every month's loan payment, fuel, insurance and maintenance for five years. The verdict goes one step further and counts what each car is still worth at the end and anything you still owe on it, so a car that holds its value gets credit for that. The loan payment uses a standard amortized loan at your rate and term. Nothing you type leaves this page.

What the sticker price hides

DepreciationA new car loses about 20% of its value the moment you drive it off the lot. That is thousands of dollars gone before your first payment. A used car has already taken that hit, so you lose less just by owning it.

InsuranceNew cars cost more to replace, so insurers charge more to cover them. A slightly older car can save you hundreds of dollars a year in premiums.

MaintenanceUsed cars are cheaper to buy but can cost more to keep running. As a car ages, parts wear out. You might save on the loan, but budget for repairs that a new car under warranty would not need.

Fuel economyNewer cars often get better mileage. If you drive a lot, the fuel saved by a new hybrid can outweigh the higher price. Check the MPG before you decide.