Why is used APR often higher?

Lenders price risk on collateral age and mileage. Certified pre-owned programs sometimes offer promotional rates closer to new-car financing.

Should I include resale value?

This tool compares money you spend, not what you might recover at sale. A new car that holds value well can narrow the gap when you trade in — model that separately.

Set down payment equal to vehicle price and APR to zero, or enter a very short term. The comparison becomes purchase price versus purchase price over the same window.

Is this financial advice?

No. Payment estimates for research. Get binding quotes from lenders and dealers before you sign.

Used vs New Car Cost Calculator

Compare total out-of-pocket cost of buying new versus used with different loan terms over the years you plan to keep the vehicle.

Used cars cost less upfront but may carry higher APR and shorter loan terms. Enter both prices, loan details, and how long you plan to keep the car to compare total cash out.

New vehicle price

Used vehicle price

New down payment

Used down payment

New loan APR (%)

Used loan APR (%)

New loan term (months)

Used loan term (months)

Years you plan to keep the car

Total cost comparison

New — estimated monthly payment: $744
Used — estimated monthly payment: $604
New — total over 5 years: $48,611
Used — total over 5 years: $32,015
Difference (new minus used): $16,596

Used saves $16,596 over 5 years (cash out of pocket only).

Compares down payment plus loan payments over your ownership window. Excludes insurance, fuel, maintenance, registration, and resale value. Used vehicles may need earlier repair spending not modeled here.

How to use this calculator

Enter realistic street prices for the new and used vehicles you are cross-shopping — same segment when possible.

Use lender quotes for APR and term on each scenario. Used loans often carry higher APR and shorter terms than new-car promotions.

Years kept should match how long you actually plan to drive the vehicle, not just the loan length.

What the results mean

Totals add down payment plus loan payments made during your ownership window. If you keep the car longer than the loan, payments stop when the loan is paid off.

Lower total cash out on used does not automatically mean better value. Warranty coverage, fuel economy, and expected repair costs sit outside this comparison.

Common questions

Why is used APR often higher?: Lenders price risk on collateral age and mileage. Certified pre-owned programs sometimes offer promotional rates closer to new-car financing.
Should I include resale value?: This tool compares money you spend, not what you might recover at sale. A new car that holds value well can narrow the gap when you trade in — model that separately.
What if I pay cash?: Set down payment equal to vehicle price and APR to zero, or enter a very short term. The comparison becomes purchase price versus purchase price over the same window.
Is this financial advice?: No. Payment estimates for research. Get binding quotes from lenders and dealers before you sign.