Shopping

Should I buy used or new?

Calculate the real cost difference between buying new and used, including depreciation, maintenance, and warranties.

By ShouldICalc Team

Updated January 2025 · See our methodology

Your Numbers

$35,000
$20,000 $80,000
$20,000
$5,000 $50,000
3
1 7
5
2 10
12,000 mi
5,000 mi 25,000 mi

New cars include manufacturer warranty

Your Results

Annual Savings

$0 – $0

per year

5-Year Savings

$0 – $0

Break Even

— months

💡 Calculating...

Enter your numbers above to see personalized results.

Trade-offs to Consider

Every decision has pros and cons. Here's what to weigh:

  • Money

    Used cars cost less upfront and depreciate slower. New cars have lower maintenance initially.

  • Time

    New cars are hassle-free under warranty. Used cars may require more repair time.

  • Quality

    New cars have latest safety and tech. Used cars are proven reliable (or not).

  • Convenience

    New cars can be custom ordered. Used cars offer immediate availability.

Related Products

Products that can help you save money. (Affiliate links)

📦

OBD2 Scanner Bluetooth

Check car codes before buying used

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FIXD OBD2 Professional Scanner

Monitor vehicle health with phone app

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Portable Car Jump Starter

Emergency power for any vehicle

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Frequently Asked Questions

What's the sweet spot for buying used?
2-4 years old with 30,000-50,000 miles is often the best value. The car has already taken the biggest depreciation hit but still has plenty of life left and may have remaining warranty.
Are CPO (Certified Pre-Owned) cars worth the premium?
Often yes. CPO cars typically include an extended warranty, have passed a multi-point inspection, and come with return policies. The premium is usually worth the peace of mind.
How much does a new car depreciate?
A new car loses about 20% of its value in the first year, then roughly 10% per year after that. By year 5, a car is worth about 40% of its original price.
Should I get a pre-purchase inspection on a used car?
Absolutely. A $100-150 inspection by an independent mechanic can save you thousands by catching hidden problems before you buy.

How We Calculate True Cost

Depreciation

The biggest cost of car ownership is depreciation - how much value the car loses while you own it. New cars depreciate fastest in the first 2-3 years.

Maintenance & Repairs

New cars have lower maintenance costs (often just oil changes under warranty). Used cars typically cost $300-500 more per year in maintenance, increasing with age.

Insurance & Taxes

We don’t include these since they vary widely by location and driver. But generally, newer cars cost more to insure.

Financing

If you’re financing, used car rates are typically 1-2% higher than new car rates. Factor this into your decision.

When New Makes Sense

  • You’ll keep it 7+ years - Longer ownership spreads the depreciation
  • You want specific features - New allows custom configuration
  • You drive high miles - Warranty covers more issues
  • Low interest rates available - New car financing deals can be excellent
  • Safety is paramount - Latest safety tech only on new models

When Used Makes Sense

  • Budget is tight - Same money buys more car used
  • You’ll keep it 3-5 years - Avoid the steepest depreciation
  • Model hasn’t changed recently - Get essentially the same car for less
  • You want luxury for less - Used luxury cars depreciate heavily
  • First car for new driver - Lower risk for learning

Best Value Buying Strategies

  1. Buy used luxury - A 3-year-old luxury car costs 50% of new
  2. Buy at year-end - Dealers discount to clear inventory
  3. Consider last year’s model - Deep discounts on “old” new cars
  4. Get private party deals - 15-20% less than dealer prices