New vs Used Car Calculator

📌 5 Tips for the New vs Used Car Decision

• ✓ Depreciation is the silent killer. A $35K new car loses ~$19,000 in 5 years. A $22K used car loses ~$6,600. The depreciation gap alone ($12,400) is bigger than the typical interest you'll pay — that's why this calculator makes the decision so clear.
• ✓ The 3-to-5-year-old sweet spot is real. The original owner absorbed the steepest depreciation (year 1-3), the car is past its initial reliability dip, and you still have 2-4 years of useful life on brakes, tires, and battery. Certified Pre-Owned (CPO) adds a factory warranty for extra peace of mind.
• ✓ Used-car loan rates are 0.5-2.0% higher than new-car rates at the same bank — but the financed amount is smaller, so total interest paid is usually lower anyway. Always check both rates at your credit union before deciding.
• ✓ If you do buy new, hold it 10+ years. A new car becomes "the cheap used car" someone else should buy. If you trade it in at year 3-5, you're paying the steepest depreciation for the privilege of having the latest model. Break-even on a new car is roughly 7-10 years of ownership.
• ✓ Check the total cost, not the sticker. A $35K new car and a $22K used car look like a $13K difference, but over 5 years the real gap is $20K-$30K once you add depreciation, financing, and maintenance. This calculator shows you the real number in 10 seconds.