Used vs New Car — cost comparison

Compare the real cost of owning a new and a used car over your chosen period — depreciation plus servicing. New loses value faster; used can cost more in repairs.

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yrs
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Verdict
New — cost of ownership
Used — cost of ownership
New — value lost
Used — value lost

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Cost of ownership = value lost + servicing × years. Depreciation uses a constant annual rate (it ignores the steeper first-year drop, which in reality favours buying used). Excludes fuel and insurance.

How we compare used and new

The calculator compares the cost of owning each car over your period: the value it loses plus annual servicing and repairs. Value lost = price × (1 − (1 − rate)^years) — the higher the price, the bigger the loss in money.

A new car loses more value (higher base) but usually costs less in repairs (warranty). A used car is the opposite: less value lost, higher servicing. The calculator shows which works out cheaper overall.

Formula

  • Value lost = price × (1 − (1 − rate)^years)
  • Cost of ownership = value lost + servicing × years
  • Comparison = cost of new vs cost of used
  • Upfront difference = new price − used price

Frequently asked questions

Does a new car always lose more?

In value, usually yes — it loses the same percentage from a higher price, and the drop is steepest in the first years. But a new car has lower repair costs and a warranty, so overall it isn't always more expensive.

Why is buying used often worth it?

The first owner absorbs the biggest value loss (up to 40–50% in three years). Buying a 2–3 year old car skips that drop, though expect higher servicing costs and a shorter warranty.

What does the calculator ignore?

Fuel, insurance, finance costs and the risk of a major fault on a used car. It models depreciation with a simplified constant annual rate — in reality a new car loses most in year one.

Is my data sent anywhere?

No — everything is calculated locally in your browser.

Used vs new car — which is cheaper?

A new car tempts with that showroom smell and a warranty, but the biggest cost — depreciation — falls on the new-car buyer in the first years. Buying used shifts that cost to the previous owner.

Enter the new and used prices, the value-loss rate and servicing costs above to see which is really cheaper.