Calculate how soon to buy your next car
Hold on to your car longer, or sell and buy a new one? This tool helps you decide.
It may be difficult to determine whether it's financially better to hold on to your current vehicle or purchase a new one. But we have a vehicle 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.
Should I keep or trade my car?
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.