New vs. used car — calculate cost of ownership

Purchase price is just one consideration. Also weigh depreciation and interest costs to determine the total cost of car ownership.

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This calculator can help compare the cost of buying a new car vs a used car. Factors such as depreciation, operating and maintenance costs, and years of ownership are used to determine what the overall costs might be.

What factors will determine the results?

  • Purchase price: Purchasing a new vehicle over a used vehicle of the same make and model will clearly cost more. The new vehicle will drop in value more than the used vehicle due to the depreciation rate. Our calculator allows you to select the rate as average, high or low.
  • Depreciation: Some vehicles just depreciate faster than others do. The faster they depreciate the lower the value becomes. Likewise, if they depreciate slower, the resale value is higher.
  • Operating costs: A new vehicle will need less maintenance than a used vehicle. Additionally, the fuel consumption of used vehicles may be more than their newer counterparts.
  • Years of ownership: If you own a vehicle for a longer period of time, the average annual cost might be lower since costs are spread out over the years of ownership.
  • Financing costs: Generally, when getting a car loan, the interest rate for a newer car is less than a used car.

New car vs used car calculator

All fields are required. If something doesn't apply, place a 0 in the field.

New car information

Used car information



New car results

Monthly payment
Total interest paid
Other costs
Total costs
Average cost per year

Used car results

Monthly payment
Total interest paid
Other costs
Total costs
Average cost per year
A new car will cost, on average, $1 more per year.
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.
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Once you decide on what car to purchase, consider talking to a State Farm® agent to learn about available car insurance coverages and the advantage of choosing to bundle insurance.

Customers may always choose to purchase only one policy but the discount for two or more purchases of different lines of insurance will not then apply. Savings, discount names, percentages, availability and eligibility may vary by state.

Neither State Farm® nor its agents provide tax or legal advice.

This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. Please consult your own adviser regarding your particular circumstances.

State Farm Mutual Automobile Insurance Company
State Farm Indemnity Company
Bloomington, IL

State Farm County Mutual Insurance Company of Texas
Richardson, TX

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