BUYING GUIDE

New vs used: compare the real cost

Purchase price is an important input, but it is not the only one. Compare the same ownership period and assumptions across the vehicles you are considering.

Start with the transaction

Compare the written purchase prices, taxes, fees and financing offers. A vehicle with a lower sticker price can still have a different total transaction.

Compare depreciation

New and used vehicles can lose value at different rates. Use a clearly labeled planning assumption rather than presenting a resale figure as a promise.

Compare financing

The APR, down payment and term can materially change the amount of interest paid. Use the actual loan offer when available.

Compare recurring costs

Insurance, fuel or charging, maintenance and likely repair exposure can differ by vehicle and age. Enter the real estimates you can support rather than using one generic number for every vehicle.

Match the time horizon

A three-year comparison and a ten-year ownership plan answer different questions. Use the same ownership period for both vehicles so the comparison is meaningful.

Planning note: Costs vary by vehicle, location, driver, lender and contract. Verify the actual figures before making a purchase.