New vs Used Car Calculator: Total Cost Compared 2026

The used car wins by $10,433.89 — the new car costs too much to buy

A new car is not just the sticker price: it is the down payment, every monthly payment, the insurance and maintenance for every year you own it, plus whatever loan is left when you sell, minus what it is worth then. A used car is the same sum with different numbers — a lower price and cheaper insurance, but a higher APR, a shorter loan and more maintenance. On the defaults — new price $35,000.00 at 6.5% APR over 60 months with $3,500.00 down; used price $20,000.00 at 8.5% APR over 48 months with $2,000.00 down; insurance $1,800.00 new and $1,200.00 used a year; maintenance $400.00 new and $1,200.00 used a year; owned 5 years; resale $15,750.00 new and $10,000.00 used — the new payment is $616.33 a month and the used payment is $443.67 a month, both loans are paid off, the new total is $35,730.02 and the used total is $25,296.13 — USED wins by $10,433.89. The new car costs $595.50 a month and the used car $421.60 a month.

The used car wins at every whole year from 1 to 10: by $9,556.60 at 1 year, $9,842.88 at 2, $10,114.93 at 3, $10,379.94 at 4, $10,433.89 at 5, $10,233.89 at 6, $10,033.89 at 7, $9,833.89 at 8, $9,633.89 at 9 and $9,433.89 at 10. The gap peaks at 5 years — when both loans are paid off — and then narrows by $200.00 a year, because once the loans are gone the new car costs $200.00 a year less to run: $2,200.00 of insurance and maintenance against $2,400.00.

At the defaults — new price $35,000.00, new APR 6.5%, new term 60 months, new down $3,500.00, used price $20,000.00, used APR 8.5%, used term 48 months, used down $2,000.00, new insurance $1,800.00, used insurance $1,200.00, new maintenance $400.00, used maintenance $1,200.00, years 5, new resale $15,750.00, used resale $10,000.00 — the new payment is $616.33, the used payment is $443.67, the new balance is $0.00, the used balance is $0.00, the new total is $35,730.02, the used total is $25,296.13, the difference is $10,433.89, the new monthly cost is $595.50 and the used monthly cost is $421.60. Check the identities: principal = max(0, price − down); monthly payment = principal × r ÷ (1 − (1 + r)⁻ⁿ) with r = APR ÷ 1200; balance after k payments = principal × (1 + r)^k − payment × ((1 + r)^k − 1) ÷ r, 0 once k ≥ n; total = down + min(term, 12 × years) × payment + (insurance + maintenance) × years + balance − resale; monthly cost = total ÷ (12 × years). Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum.

The worked example, line by line

Setup: new price $35,000.00, new APR 6.5%, new term 60 months, new down $3,500.00, used price $20,000.00, used APR 8.5%, used term 48 months, used down $2,000.00, new insurance $1,800.00, used insurance $1,200.00, new maintenance $400.00, used maintenance $1,200.00, years 5, new resale $15,750.00, used resale $10,000.00.

Line 1 — the loans. New principal: $35,000.00 − $3,500.00 = $31,500.00; used principal: $20,000.00 − $2,000.00 = $18,000.00. New payment: $31,500.00 × 0.00541667 ÷ (1 − 1.00541667⁻⁶⁰) = $616.33 a month. Used payment: $18,000.00 × 0.00708333 ÷ (1 − 1.00708333⁻⁴⁸) = $443.67 a month.

Line 2 — the payments made. Over 5 years both loans run out — 60 new payments and 48 used payments — so both balances are $0.00. New payments: 60 × $616.33 = $36,979.80 (unrounded $36,980.02). Used payments: 48 × $443.67 = $21,296.16 (unrounded $21,296.13).

Line 3 — the running costs. New insurance and maintenance: ($1,800.00 + $400.00) × 5 = $11,000.00. Used: ($1,200.00 + $1,200.00) × 5 = $12,000.00.

Line 4 — the totals. New: $3,500.00 + $36,980.02 + $11,000.00 + $0.00 − $15,750.00 = $35,730.02. Used: $2,000.00 + $21,296.13 + $12,000.00 + $0.00 − $10,000.00 = $25,296.13. Difference: $35,730.02 − $25,296.13 = $10,433.89 — USED wins by $10,433.89.

Line 5 — the monthly cost. New: $35,730.02 ÷ 60 = $595.50 a month. Used: $25,296.13 ÷ 60 = $421.60 a month.

Reverse: the used price for a tie is $28,818.97 (exact 28818.9691); at $28,818 the used total is $35,728.87 (USED by $1.15), at $28,819 it is $35,730.06 (NEW by $0.04). The new price for a tie is $26,112.30 (exact 26112.2977); at $26,112 the new total is $25,295.78 (NEW by $0.35), at $26,113 it is $25,296.96 (USED by $0.82). The used maintenance for a tie is $3,286.78 a year (exact 3286.7772); at $3,286 the used total is $35,726.13 (USED by $3.89), at $3,287 it is $35,731.13 (NEW by $1.11). There is no break-even year — the used car wins at every whole year from 1 to 10. The used APR for a tie is 31.23% (exact 31.2294%); at 31.23% the used total is $35,730.30 (NEW by $0.28), at 31.22% it is $35,725.23 (USED by $4.79). There is no break-even new APR — even at 0% APR the new total is $30,250.00, still above the used total $25,296.13.

Every branch, checked

Used price $15,000: new payment $616.33, used payment $320.43, new total $35,730.02, used total $19,380.54 — USED wins by $16,349.48. At $15,000 the used payment falls to $320.43 a month and the used total to $19,380.54 — the used car wins by $16,349.48.

Used price $25,000: new payment $616.33, used payment $566.91, new total $35,730.02, used total $31,211.73 — USED wins by $4,518.29. At $25,000 the used payment rises to $566.91 a month and the used total to $31,211.73 — the used car still wins, by $4,518.29.

New price $30,000: new payment $518.50, used payment $443.67, new total $29,860.18, used total $25,296.13 — USED wins by $4,564.04. At $30,000 the new payment falls to $518.50 a month and the new total to $29,860.18 — the used car still wins, by $4,564.04.

New APR 3.9%: new payment $578.70, used payment $443.67, new total $33,472.00, used total $25,296.13 — USED wins by $8,175.87. At 3.9% APR the new payment falls to $578.70 a month and the new total to $33,472.00 — the used car still wins, by $8,175.87.

Used APR 12%: new payment $616.33, used payment $474.01, new total $35,730.02, used total $26,752.43 — USED wins by $8,977.59. At 12% APR the used payment rises to $474.01 a month and the used total to $26,752.43 — the used car still wins, by $8,977.59.

3 years owned: new payment $616.33, used payment $443.67, new total $30,373.83, used total $20,258.90 — USED wins by $10,114.93. Over 3 years the new loan still has $13,835.81 left and the used loan $5,086.80 — the used car wins by $10,114.93.

1 year owned: new payment $616.33, used payment $443.67, new total $23,335.25, used total $13,778.64 — USED wins by $9,556.60. Over 1 year the new loan still has $25,989.24 left and the used loan $14,054.61 — the used car wins by $9,556.60.

New insurance $2,500/yr: new payment $616.33, used payment $443.67, new total $39,230.02, used total $25,296.13 — USED wins by $13,933.89. At $2,500.00 a year of insurance the new total rises to $39,230.02 — the used car wins by $13,933.89.

Used maintenance $2,400/yr: new payment $616.33, used payment $443.67, new total $35,730.02, used total $31,296.13 — USED wins by $4,433.89. At $2,400.00 a year of maintenance the used total rises to $31,296.13 — the used car still wins, by $4,433.89.

New resale $20,000: new payment $616.33, used payment $443.67, new total $31,480.02, used total $25,296.13 — USED wins by $6,183.89. At a $20,000.00 resale the new total falls to $31,480.02 — the used car wins by $6,183.89.

Used resale $5,000: new payment $616.33, used payment $443.67, new total $35,730.02, used total $30,296.13 — USED wins by $5,433.89. At a $5,000.00 resale the used total rises to $30,296.13 — the used car wins by $5,433.89.

Both APRs 0%: new payment $525.00, used payment $375.00, new total $30,250.00, used total $22,000.00 — USED wins by $8,250.00. With no interest at all the payments are $525.00 and $375.00 a month and the totals are $30,250.00 and $22,000.00 — the used car wins by $8,250.00.

Used price $0: new payment $616.33, used payment $0.00, new total $35,730.02, used total $4,000.00 — USED wins by $31,730.02. A free used car still costs $4,000.00 over five years — $2,000.00 down, $12,000.00 of insurance and maintenance, minus a $10,000.00 resale — and the used car wins by $31,730.02.

New resale = new price: new payment $616.33, used payment $443.67, new total $16,480.02, used total $25,296.13 — NEW wins by $8,816.11. If the new car kept its whole $35,000.00 of value, the new total would fall to $16,480.02 — the new car would win by $8,816.11. That is the only branch where the new car wins.

Used resale = used price: new payment $616.33, used payment $443.67, new total $35,730.02, used total $15,296.13 — USED wins by $20,433.89. If the used car kept its whole $20,000.00 of value, the used total would fall to $15,296.13 — the used car wins by $20,433.89.

Both resales = prices: new payment $616.33, used payment $443.67, new total $16,480.02, used total $15,296.13 — USED wins by $1,183.89. If both cars kept their whole value, the totals are $16,480.02 and $15,296.13 — the used car still wins, by $1,183.89.

What the defaults assume

The model assumes the loan is a fixed-rate amortizing loan with monthly payments and no fees, no balloon payment and no early payoff — the balance formula is the standard amortization balance. It assumes insurance and maintenance are flat per year for the whole ownership period, with no inflation and no major repair. It assumes the resale values you enter are what you actually get, with no trade-in tax credit and no selling costs. It assumes you sell after exactly the years owned, and the remaining balance is what you still owe at that point — if the loan is paid off, the balance is $0.00. A used price of $0.00 still costs $4,000.00 over five years — $2,000.00 down, $12,000.00 of insurance and maintenance, minus a $10,000.00 resale — and the used car wins by $31,730.02. With both APRs at 0% the payments are $525.00 and $375.00 a month and the totals are $30,250.00 and $22,000.00 — the used car wins by $8,250.00. Over 1 year the new loan still has $25,989.24 left and the used loan $14,054.61 — the used car wins by $9,556.60. If the new car kept its whole $35,000.00 of value, the new total would be $16,480.02 and the new car would win by $8,816.11 — the only branch where the new car wins. Years owned must be 1 or more — below 1 is a validation error. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum; the reverses are nearest-value solutions, and the exact unrounded figures (28818.9691, 26112.2977, 3286.7772, 31.2294%) are stated wherever the rounded figures appear.

Output · formula · meaning

Who uses this

• The buyer choosing between a $35,000 new car and a $20,000 used one: they learn the used car wins by $10,433.89 over five years — $595.50 a month against $421.60 — and they check the $28,818.97 reverse to see how expensive the used car would have to be before the new one wins.
• The buyer who only keeps cars three years: they learn the used car still wins by $10,114.93 — the new loan still has $13,835.81 left against $5,086.80 — and they check the 1-year branch ($9,556.60) to see that the gap is there from the start.
• The buyer worried about repair bills: they learn that even at $2,400.00 a year of maintenance the used car wins by $4,433.89 — and they check the $3,286.78 reverse to see the maintenance level where the new car finally catches up.
• The buyer offered 0% APR on the new car: they learn that even with no interest at all the new car still loses by $8,250.00 — and they check the 31.23% reverse to see the used-car APR that would flip the result.

Accuracy & limitations

The math is exact arithmetic on your fifteen inputs: principal = max(0, price − down); monthly payment = principal × r ÷ (1 − (1 + r)⁻ⁿ) with r = APR ÷ 1200; balance after k payments = principal × (1 + r)^k − payment × ((1 + r)^k − 1) ÷ r, 0 once k ≥ n; total = down + min(term, 12 × years) × payment + (insurance + maintenance) × years + balance − resale; monthly cost = total ÷ (12 × years). The 4-decimal exact is shown where the rounding matters: the used price for a tie is 28818.9691 (shown as $28,818.97); at $28,818 the used total is $35,728.87, at $28,819 it is $35,730.06. The new price for a tie is 26112.2977 (shown as $26,112.30); at $26,112 the new total is $25,295.78, at $26,113 it is $25,296.96. The used maintenance for a tie is 3286.7772 (shown as $3,286.78); at $3,286 the used total is $35,726.13, at $3,287 it is $35,731.13. The used APR for a tie is 31.2294% (shown as 31.23%); at 31.23% the used total is $35,730.30, at 31.22% it is $35,725.23. What the model cannot do is predict your actual costs: real maintenance is lumpy, not flat; insurance varies by driver and state; resale values are estimates; and it does not model taxes, registration, fuel or the value of a warranty. A used car can also hide repairs the seller never mentioned — get an inspection before you buy. For the loan alone, see the auto loan term comparison calculator; for the lease alternative, see the lease vs buy car calculator; for the insurance side, see the auto insurance cost calculator; for the fuel side, see the gas vs electric car calculator; for winter running costs, see the winter tires vs all-season calculator. This is a calculator, not financial advice.