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Buy new vs buy used car
Put your prices, years kept and yearly maintenance in: $30,000 new costs $32,500 over 5 years against $24,000 used.
★ COMPARISONS · CARS · NEW VS USED
Buy New vs Buy Used Car Calculator: Total Cost Compared
On the defaults — a $30,000 new car kept 5 years at $500 a year in maintenance — the new car costs $32,500 against $24,000 for an $18,000 used car, so the used car saves $8,500. That is the BUY-NEW-VS-BUY-USED version — two purchase prices plus maintenance over the years you keep the car — the lease-vs-buy-car page is the LEASE version — monthly lease payments against buying outright; the new-vs-used-laptop page is the LAPTOP version — the same new-versus-used shape for a computer; and the car-loan-calculator page is the LOAN version — what a financed car costs month by month.
What does the used car saving $8,500 mean?
It means that over five years the used car costs $8,500 less in total: the new car is $30,000 plus 5 × $500 of maintenance, which is $32,500, while the used car is $18,000 plus 5 × $1,200, which is $24,000. The purchase gap is the whole story in miniature — the used car starts $12,000 cheaper, and its $700-a-year maintenance disadvantage takes five years to eat $3,500 of that lead, leaving $8,500. The part people get wrong is comparing sticker prices alone: on sticker prices the used car wins by $12,000, but maintenance narrows it every year, and over a long enough ownership it erases it entirely.
Three things to check before you trust the number
Is $1,200 the used car's real maintenance? A well-kept used car costs less than this and a neglected one costs more, and the gap moves the total fast: the $800 branch shows the used car saving $10,500, while a $1,500 maintenance figure would leave the used car saving only $7,000. Get a pre-purchase inspection before trusting any used maintenance figure.
How long will you really keep it? The years reverse is the page's sharpest result: at 17 years the used car still saves $100, and at 18 years the new car saves $600 — the crossover is that sudden because the $700 yearly maintenance gap compounds against a fixed $12,000 price gap. If you keep cars for decades, the new car's lower maintenance wins; if you swap every few years, the used car's price wins.
What is not in the totals? Fuel, insurance, tax and financing are not modelled, and they do not split evenly: a new car usually costs more to insure and may cost less in fuel, while a financed purchase adds interest that a cash purchase avoids. Add those to both sides before making the final call.
Worked example
On the defaults: new $30,000, used $18,000, kept 5 years, new maintenance $500 a year, used maintenance $1,200 a year.
- New total: $30,000 + 5 × $500 is $32,500.
- Used total: $18,000 + 5 × $1,200 is $24,000.
- Difference: $32,500 − $24,000 is $8,500, so the used car saves $8,500.
And the other way: the used car price matching the $32,500 new total over 5 years is $26,500, the used car first costs more than the new car at 18 years, and the new car price matching the $24,000 used total over 5 years is $21,500.
Every branch, checked
- Kept 3 years, same prices and maintenance: Kept 3 years, same prices and maintenance: New $31,500.00; used $21,600.00 — Used car saves $9,900.00.
- Kept 10 years, same prices and maintenance: Kept 10 years, same prices and maintenance: New $35,000.00; used $30,000.00 — Used car saves $5,000.00.
- Used car $22,000, same new price and maintenance: Used car $22,000, same new price and maintenance: New $32,500.00; used $28,000.00 — Used car saves $4,500.00.
- Used car $14,000, same new price and maintenance: Used car $14,000, same new price and maintenance: New $32,500.00; used $20,000.00 — Used car saves $12,500.00.
- New car maintenance $1,000 a year, same prices: New car maintenance $1,000 a year, same prices: New $35,000.00; used $24,000.00 — Used car saves $11,000.00.
- Used car maintenance $800 a year, same prices: Used car maintenance $800 a year, same prices: New $32,500.00; used $22,000.00 — Used car saves $10,500.00.
The reverses, worked backwards
- Used car price matching the $32,500 new total over 5 years: $26,500 — at $26,500 the figures are New $32,500.00; used $32,500.00 — Exactly even.; at the lower neighbor the figures are New $32,500.00; used $32,000.00 — Used car saves $500.00.; at the upper neighbor the figures are New $32,500.00; used $33,000.00 — New car saves $500.00..
- Years at which the used car first costs more than the new car: 18 years — at 18 years the figures are New $39,000.00; used $39,600.00 — New car saves $600.00.; at the lower neighbor the figures are New $38,500.00; used $38,400.00 — Used car saves $100.00.; at the upper neighbor the figures are New $39,500.00; used $40,800.00 — New car saves $1,300.00..
- New car price matching the $24,000 used total over 5 years: $21,500 — at $21,500 the figures are New $24,000.00; used $24,000.00 — Exactly even.; at the lower neighbor the figures are New $23,500.00; used $24,000.00 — New car saves $500.00.; at the upper neighbor the figures are New $24,500.00; used $24,000.00 — Used car saves $500.00..
What the defaults assume
The defaults are a $30,000 new car, an $18,000 used car, 5 years kept, $500 a year of new maintenance and $1,200 a year of used maintenance, so the headline is a mid-price new car against a mid-price used car kept for a typical ownership stretch. The model is two additions: price plus years times yearly maintenance, on each side. The used-price reverse is checked at $500 either side, because $500 of price is $500 of total; the years reverse is checked at 1 year either side, because 1 year moves the gap by $700; the new-price reverse is checked at $500 either side for the same reason. The model does not include fuel, insurance, tax, financing, depreciation or resale value — resale in particular favours the new car, since a five-year-old new car still holds value the used car has already lost.
Output · formula · meaning
| Output | Formula | What it means |
|---|---|---|
| New car total | new price + years × new maintenance per year | $32,500 — $30,000 + 5 × $500. |
| Used car total | used price + years × used maintenance per year | $24,000 — $18,000 + 5 × $1,200. |
| Difference | new total − used total | $8,500 — $32,500 − $24,000, so the used car saves $8,500. |
| Used price matching the new total | new total − years × used maintenance per year | $26,500 — $32,500 − 5 × $1,200. |
| New price matching the used total | used total − years × new maintenance per year | $21,500 — $24,000 − 5 × $500. |
| Kept 3 years, same prices and maintenance | same model | New $31,500.00; used $21,600.00 — Used car saves $9,900.00. |
| Kept 10 years, same prices and maintenance | same model | New $35,000.00; used $30,000.00 — Used car saves $5,000.00. |
| Used car $22,000, same new price and maintenance | same model | New $32,500.00; used $28,000.00 — Used car saves $4,500.00. |
| Used car $14,000, same new price and maintenance | same model | New $32,500.00; used $20,000.00 — Used car saves $12,500.00. |
| New car maintenance $1,000 a year, same prices | same model | New $35,000.00; used $24,000.00 — Used car saves $11,000.00. |
| Used car maintenance $800 a year, same prices | same model | New $32,500.00; used $22,000.00 — Used car saves $10,500.00. |
| Used car price matching the $32,500 new total over 5 years | reverse | $26,500: New $32,500.00; used $32,500.00 — Exactly even. |
| Years at which the used car first costs more than the new car | reverse | 18 years: New $39,000.00; used $39,600.00 — New car saves $600.00. |
| New car price matching the $24,000 used total over 5 years | reverse | $21,500: New $24,000.00; used $24,000.00 — Exactly even. |
| Kept 0 years | same model | New $30,000.00; used $18,000.00 — Used car saves $12,000.00. |
| Negative new car price | same model | New car price — $0 or more. |
| Negative used car maintenance | same model | Used car maintenance per year — $0 or more. |
| Negative years kept | same model | Years kept — 0 or more. |
Who uses this
- A buyer choosing between new and used — $32,500 against $24,000 over five years, with the $26,500 break-even used price as the decision line.
- A long-ownership buyer — the 10-year branch shows the used lead narrowing to $5,000, and the 18-year crossover behind it.
- Someone whose used car needs little work — the $800-maintenance branch shows the used car saving $10,500.
- A buyer checking a dealer quote — the reverses give the price or ownership length behind any quoted total.
Accuracy & limitations
Figures are the model’s own arithmetic on the numbers you type, computed from unrounded values and displayed rounded HALF_UP to 2dp. The main limitation is what is left out, not the arithmetic: fuel, insurance, tax, financing and resale value all move the real comparison, and maintenance is an average, not a promise — one big repair can swamp years of averages. This page is a calculation tool, not buying advice.
Cite this calculator
A $30,000 new car costs $32,500 over 5 years against $24,000 for an $18,000 used car. Source: Bright Side Kit, https://brightoolbox.com/buy-new-vs-buy-used-car/, accessed 28 October 2026.
Frequently asked questions
How do you compare a new car and a used car fairly?
Add maintenance over the years you keep each car to its price. $30,000 + 5 × $500 is $32,500 new, and $18,000 + 5 × $1,200 is $24,000 used.
What used price makes the two cars exactly even over 5 years?
$26,500. $32,500 − 5 × $1,200 is $26,500.
How many years until the used car costs more than the new car?
18 years on the defaults. At 17 years the used car still saves $100; at 18 years the new car saves $600.
What new price makes the two cars exactly even over 5 years?
$21,500. $24,000 − 5 × $500 is $21,500.
Why does the used car win at 5 years but lose at 18?
Because the $12,000 price gap is fixed and the $700 yearly maintenance gap is not. Every extra year eats $700 of the lead, and 18 years eats more than all of it.
What costs are not included?
Fuel, insurance, tax, financing and resale value. Resale favours the new car, insurance usually does too, and financing adds interest a cash purchase avoids.
Does a pre-purchase inspection change the answer?
It can change the maintenance figure, which changes everything. A clean inspection supports the $800 branch; a list of deferred repairs supports a figure well above $1,200.