New vs. used car financing: the total-cost checklist
The purchase price is only one part of a vehicle decision. Depreciation, insurance, maintenance, financing, taxes, and expected ownership time can change which option delivers better value.
Compare the full ownership window
Estimate the loan payment, down payment, insurance difference, likely repairs, fuel or charging costs, and resale value for the years you plan to keep the car. Check whether promotional rates require a higher price or shorter term.
Use one comparable number
Add every expected cost over the same ownership period, subtract estimated resale value, and divide by the number of months. That monthly ownership figure makes new and used options easier to compare fairly.
