🚗 Should I buy a new or used car?

Choosing between a new car and a lightly used equivalent comes down to depreciation versus peace of mind. Consumer Reports finds that used-car buyers skip the brutal depreciation curve of the first few years, scoring major savings. But new cars deliver peak reliability and zero mileage. This calculator reveals the true total cost of each path over your entire ownership horizon.

Both options require financing. We apply the same loan rate to both to keep the comparison clean. Keep in mind that used-car loans typically carry an interest rate about a point higher than new-car loans.

New cars usually win out when strong manufacturer incentives close the price gap, or when you plan to drive the vehicle into the ground over a decade or more.

Used vehicles deliver their biggest financial edge when the upfront price gap is massive and you don't mind handling occasional repairs. The older the car, the more upkeep it demands. We factor in an annual maintenance gap to represent the extra money the used car needs over the new one.

Certified pre-owned (CPO) vehicles sit right in the middle. Consumer Reports notes that CPO cars have 14% fewer problems than standard used cars, though they still recommend an independent inspection.

This model strips away a few messy real-world variables to give you a clear baseline. We exclude differences in insurance premiums, registration fees, and the specific cash value of the new car's warranty.

Individual vehicle condition also matters heavily. No two used cars are identical, and how the previous owner drove the car can shift your true maintenance costs in either direction.

For further related reading, check out:

• Should You Buy a New, Certified Pre-Owned, or Used Car? - Consumer Reports