Calculate how soon to buy your next car
If you are asking yourself should I buy a new car or keep my old one? This tool can help you decide.
It may be difficult to determine whether you should hold on to your current vehicle if you've paid it off or purchase a new one. But we have a car depreciation calculator that can help with that decision.
Typically, you will find that it's better to keep a vehicle a little longer since cars can depreciate quickly within the first few years of ownership. Along with depreciation, you're typically paying more loan interest in the first few years of ownership as well. Sales tax and licensing fees are another consideration with new cars. All that adds up each time a different vehicle is purchased. This calculator is meant to be a general resource based on the inputted numbers. Cars of similar dollar values can have different depreciation rates based on factors like make, model and current market conditions. Check your type of car for more specifics.
This auto calculator can help you visualize the savings you may get by keeping your current vehicle after it's paid off instead of replacing with a new one. It might also assist you in making an informed decision should you want to trade in your car after it is paid off. The calculator may give you some information to help plan and adjust your savings strategy to make purchasing a new car a reality.
Should I trade in my car or keep it?
Car you currently own
Keep your vehicle
Purchase a different vehicle
The first year's depreciation is 20% on the new car and 10% on the used car. Subsequent years were figured at 10% for both new and used.
Now that you have seen the potential savings of keeping your current car or likely costs if you decide to get a new car, you might want to learn more about car loan basics, tips for buying a car online or GAP insurance. And consider contacting a State Farm® insurance agent for any of your car, home and life insurance needs.