New vs used car calculator
This new vs used car calculator compares two loans at once, a new car at a lower rate and a used car at a higher rate, so you can see the real cost difference.
What the comparison leaves out
Loan cost is only part of the picture. A new car brings a warranty and lower early maintenance but steeper depreciation. A used car costs less to buy and insure but may need repairs sooner. Add the expected maintenance, insurance and depreciation for each car to your decision, not just the payment.
Using the two loans
Loan A is set as the new car and Loan B as the used one. Change the amounts, rates and terms to match your quotes. The summary line shows whether Loan B costs more or less in total interest, and the key figures show each payment and the total paid.
The two loans compared
Loan A ($38,000 at 6.5% for 5 years) costs $743.51 a month and $6,611 in interest. Loan B ($24,000 at 9.5% for 5 years) costs $504.04 a month and $6,243 in interest. Loan B costs less in total, by $14,368, while its monthly payment is higher by $239.47.
| Loan A | Loan B | |
|---|---|---|
| Amount | $38,000 | $24,000 |
| Rate | 6.5% | 9.5% |
| Term | 5 years | 5 years |
| Monthly payment | $743.51 | $504.04 |
| Total interest | $6,611 | $6,243 |
| Total paid | $44,611 | $30,243 |
Frequently asked questions
Is a new or used car cheaper overall?
A used car usually costs less to own through the first few years because of depreciation, but a new car can cost less in repairs. Compare total cost over the years you plan to keep it.
Do I get a better rate on a new car?
Often, because lenders and manufacturers offer promotional rates on new cars, but your credit score affects the rate more than the car’s age.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.