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New Vs. Used Car Calculator

Apr 16, 2024

The average used car costs less than the average new car by about two-thirds. But cost isn’t everything. New cars have manufacturer warranties and modern features that some used cars lack. An older used car may not be able to keep up with people who put a lot of miles on their car. Consider the amount you drive, how long you plan on keeping the vehicle, the current and future value of the vehicle and your lifestyle. To find out if financing a new or used vehicle is right for you, answer the following questions for tailored advice. 

Should you get a new or used car?

At the simplest level, buying used instead of new will cost you less money. But buying used may also mean compromising on the newest available features. Purchasing new can be a good choice if you are comfortable spending a bit more money and want the most advanced features and lower initial maintenance costs.

Considerations when buying new 

New vehicles often have better interest rates and the option to customize your purchase to your needs. You may also find new tech that makes your ride safer, more reliable and more efficient. But new vehicles cost more, have more expensive car insurance and depreciation more quickly than similar used cars.

When shopping for new vehicles, be sure to research your purchase and test drive different versions of the models you are interested in before making a final decision.

Considerations when buying used

A used car comes with potentially higher maintenance costs and its driving history may include undisclosed issues or accidents. It may also become increasingly expensive to maintain as the car gets older and parts stop being manufactured. But it will be less expensive to purchase, may have lower insurance rates and depreciate more slowly than a new car. 

When shopping for a used car, consider a certified pre-owned option. A CPO car will have a lower price tag than a new car, but a higher pricetag than a non-CPO version of the same vehicle. However, the manufacturer's thorough inspection process — and specialized warranty — will assure that you are buying a well-cared-for vehicle.