New vs Used Car Comparison Calculator
Continue Your Guide
This tool is part of these step-by-step guides. Follow along for personalized help.
Frequently Asked Questions
Should I buy a new or used car?
The decision depends on your budget, needs, and priorities. Used cars typically offer better value due to lower upfront costs and reduced depreciation, while new cars provide latest features, full warranties, and potentially better financing. Use this calculator to compare total cost of ownership.
How much depreciation should I expect on a new car?
New vehicles typically lose 20% of their value in the first year, followed by 15% per year for years 2-5, and about 10% annually after that. This means a $30,000 new car may be worth only $15,000-$18,000 after 3-4 years.
Are used cars more reliable than new cars?
Modern vehicles are generally reliable, but used cars may require more maintenance depending on age and mileage. New cars have the advantage of full warranties and no prior wear. Consider certified pre-owned programs for used vehicles with extended warranties.
What financing differences exist between new and used cars?
New cars typically offer lower interest rates (often 2-4%) and longer loan terms (up to 84 months). Used car loans usually have higher rates (4-7%) and shorter terms (up to 72 months). Dealers also frequently offer promotional financing on new vehicles.
