A clearer way to compare cars

Which car costs less—really?

Compare the full financial picture, not just the payment. See what depreciation, interest, fuel, trade-in equity and investing the savings do to your money.

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Start with a common comparison

Put two options side by side

Option A

2026 new gas · financed

Vehicle

Pay with

Purchase price$

Manufacturer

Vehicle model year

Current or upcoming model year. CarCost uses this for depreciation, warranty, and repair exposure.

Powertrain

Down payment$

Interest rate%

Loan length

Add a trade-inValue minus what you still oweOptional

Trade-in value$

Loan payoff$

Leave both at $0 if you are not trading in a vehicle.

Fine-tune this optionRunning costs, warranty and depreciationAdvanced

Routine maintenance and tires are separate from warranty repairs. These editable annual planning reserves rise with vehicle age; use your service plan, tire quote or repair history when available.

Fuel economyMPG

Insurance per yearSuggested$

Routine maintenance & tires per yearSuggested$

Uncovered repair reserve per yearSuggested$

Factory warranty remainingSuggestedmonths

Registration & dealer fees$

Stress test: one big uncovered repair$

Repair happens in

Leave at $0 to skip. Use this to test how a surprise engine, transmission, or electrical bill changes the verdict.

Estimated value when you sell in 2033%Of today's purchase price after 7 years, when this model will be about 7 years old.

Option B

2023 used gas · financed

Vehicle

Pay with

Purchase price$

Manufacturer

Vehicle model year

Mileage todaySuggestedmiles

About 3 years old today. CarCost uses age and mileage for depreciation, warranty, and repair exposure.

Powertrain

Down payment$

Interest rate%

Loan length

Certified / extended warrantymonths

Warranty cost$

Factory coverage has run out. Added CPO or extended months pause repair costs while active. Leave cost at $0 if it's already included in the purchase price.

Add a trade-inValue minus what you still oweOptional

Trade-in value$

Loan payoff$

Leave both at $0 if you are not trading in a vehicle.

Fine-tune this optionRunning costs, warranty and depreciationAdvanced

Routine maintenance and tires are separate from warranty repairs. These editable annual planning reserves rise with vehicle age; use your service plan, tire quote or repair history when available.

Fuel economyMPG

Insurance per yearSuggested$

Routine maintenance & tires per yearSuggested$

Uncovered repair reserve per yearSuggested$

Factory warranty remainingSuggestedmonths

Registration & dealer fees$

Stress test: one big uncovered repair$

Repair happens in

Leave at $0 to skip. Use this to test how a surprise engine, transmission, or electrical bill changes the verdict. The typical transferable powertrain warranty (5 yr / 60,000 mi from new) has roughly 24 months left at average driving, so a covered powertrain failure in that window would cost far less.

Estimated value when you sell in 2033%Of today's purchase price after 7 years, when this model will be about 10 years old.

Your plan

Make it match real life

Keep the car for

Drive each yearmiles

Invest tracked savingsOff keeps tracked differences as cash at 0%.

Taxes, energy prices & investment return

Sales tax%

Gas price$/ gal

Electricity rate$/ kWh

Expected investment return% / yr

Apply a sales-tax credit for trade-in valueCommon in many states, but not universal.

Option B costs $9,487 lessSee result ↓

CarCost

Vehicle cost comparison

Educational estimate based on the assumptions shown below.

Comparison	Option A	Option B
Vehicle	2026 new gas · financed	2023 used gas · financed
Manufacturer	Toyota	Toyota
Purchase price / MSRP	$42,000	$27,000
Model year / approximate age today	2026 / 0 years	2023 / 3 years
Payment method	Loan	Loan
Trade-in equity	$0	$0
Payment	$783/mo	$527/mo
Cash paid during comparison	$78,898	$60,780
Vehicle value / loan balance at end	$22,965 / $0	$14,333 / $0
Net vehicle equity at end	$22,965	$14,333
Tracked cash account at end	$0	$18,118
Account + vehicle equity	$22,965	$32,452
Ownership cost after vehicle equity	$55,933	$46,446

Assumptions: 7 years of ownership, 12,000 miles per year, 7% sales tax, with every unused-cash difference held as cash at 0%.

Period	A money out	B money out	A account balance	B account balance
Today	$5,000	$3,000	$0	$2,000
Year 1	$13,052	$9,978	$0	$5,073
Year 2	$13,066	$9,996	$0	$8,142
Year 3	$13,080	$10,022	$0	$11,200
Year 4	$13,344	$10,055	$0	$14,488
Year 5	$13,358	$10,088	$0	$17,757
Year 6	$3,986	$3,803	$0	$17,940
Year 7	$4,015	$3,836	$0	$18,118

The bottom line

Option B costs $9,487 less over 7 years.

2023 used gas · financed has the lower estimated ownership cost. This counts every dollar paid—including loan interest and running costs—then subtracts net vehicle equity at the end. The Follow the Money table below shows the same comparison year by year, with every unused-cash difference held as cash at 0%.

Show the math

Cash paid over 7 years: A $78,898, B $60,780.
Subtract what each car is still worth at the end (after any remaining loan): A −$22,965, B −$14,333.
Net ownership cost: A $55,933 vs. B $46,446 — Option B costs $9,487 less.

Same figures as the option cards and the Follow the Money table below—this is one calculation viewed three ways.

Estimated ownership-cost difference$9,487$1,355 per year

✓

No major red flags in these inputs

Neither option shows extended negative equity, rolled-in debt, or a very long loan.

See the numbers behind this resultCash paid, saved money, vehicle equity, yearly cash flow and loan health

What “available at the end” means

Tracked cash or investments + estimated vehicle value − remaining vehicle loan. Savings that are identical under both choices cancel out; differences you leave untracked are not added quietly at the end.

Option A2026 new gas · financed

$78,898cash paid over 7 years

Tracked cash account$0

Net equity in the vehicle$22,965$22,965 value − $0 loan

Cash / investments + vehicle equity$22,965

Loan payment$783/mo

Cost after vehicle equity$55,933

Worth at the end (54.7%)$22,965

Loan left at the end$0

Option B2023 used gas · financed

$60,780cash paid over 7 years

Tracked cash account$18,118

Net equity in the vehicle$14,333$14,333 value − $0 loan

Cash / investments + vehicle equity$32,452

Loan payment$527/mo

Cost after vehicle equity$46,446

Worth at the end (53.1%)$14,333

Loan left at the end$0

Follow the moneyWhat leaves, what stays, and what grows0% return

Both options get the same budget. Whenever one needs less cash—today or in any later month—that difference goes into its comparison account below.

How should tracked money grow?

Today: A pays $5,000; B pays $3,000Purchase or down payment, trade-in effect, taxes, and fees.

Option B sets aside $2,000Later differences are added as they occur.

Period	A money out	B money out	Added to account	End of period
Today	$5,000upfront cash, taxes & fees See breakdown Upfront purchase, down payment & fees $5,000	$3,000upfront cash, taxes & fees See breakdown Upfront purchase, down payment & fees $3,000	B $2,000No return this period	A $0 · B $2,000Tracked cash account
Year 1	$13,052loan payments + running costs See breakdown Loan / lease payments & fees $9,394 Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $358	$9,978loan payments + running costs See breakdown Loan / lease payments & fees $6,319 Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $460 Uncovered repairs $250	B $3,073No return this period	A $0 · B $5,073Tracked cash account
Year 2	$13,066loan payments + running costs See breakdown Loan / lease payments & fees $9,394 Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $372	$9,996loan payments + running costs See breakdown Loan / lease payments & fees $6,319 Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $478 Uncovered repairs $250	B $3,069No return this period	A $0 · B $8,142Tracked cash account
Year 3	$13,080loan payments + running costs See breakdown Loan / lease payments & fees $9,394 Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $386	$10,022loan payments + running costs See breakdown Loan / lease payments & fees $6,319 Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $496 Uncovered repairs $258	B $3,057No return this period	A $0 · B $11,200Tracked cash account
Year 4	$13,344loan payments + running costs See breakdown Loan / lease payments & fees $9,394 Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $400 Uncovered repairs $250	$10,055loan payments + running costs See breakdown Loan / lease payments & fees $6,319 Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $514 Uncovered repairs $273	B $3,288No return this period	A $0 · B $14,488Tracked cash account
Year 5	$13,358loan payments + running costs See breakdown Loan / lease payments & fees $9,394 Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $414 Uncovered repairs $250	$10,088loan payments + running costs See breakdown Loan / lease payments & fees $6,319 Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $532 Uncovered repairs $288	B $3,269No return this period	A $0 · B $17,757Tracked cash account
Year 6	$3,986loan payments + running costs See breakdown Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $428 Uncovered repairs $258	$3,803loan payments + running costs See breakdown Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $550 Uncovered repairs $303	B $183No return this period	A $0 · B $17,940Tracked cash account
Year 7	$4,015loan payments + running costs See breakdown Fuel / charging $1,400 Insurance $1,900 Routine maintenance & tires $442 Uncovered repairs $273	$3,836loan payments + running costs See breakdown Fuel / charging $1,400 Insurance $1,550 Routine maintenance & tires $568 Uncovered repairs $318	B $179No return this period	A $0 · B $18,118Tracked cash account

This is a comparison account, not your full net worth. A positive return is hypothetical and excludes investment taxes, fees, inflation, and volatility. Choose Cash · 0% to model tracked money with no growth. The HYSA and index rates are editable illustrations, not predictions.

Loan health

Equity over time

The red area means the loan balance is higher than the car’s estimated value.

Option A equity Option B equity

No hidden buckets

Where the money goes

Trade-in equity appears as a credit. Resale value is already netted from depreciation.

Cost categoryOption AOption B

Depreciation

$19,035

$12,667

Loan interest

$6,380

$5,253

Sales tax

$2,940

$1,890

Registration & fees

$650

$450

Fuel / charging

$9,800

Insurance

$13,300

$10,850

Maintenance & repairs

$3,828

$5,537

What most payment calculators leave out

The payment is only one line in the story.

This calculator follows the money from the day you buy through the day you sell.

Depreciation

Estimates what the vehicle may be worth when you sell, adjusted for model year, manufacturer, powertrain and time owned.

Trade-in equity

Subtracts your payoff from trade value and carries negative equity into the transaction when needed.

Loan timing

Calculates the exact balance if you sell before the loan ends, including 5-, 6-, 7- and 8-year terms.

Running costs

Adds fuel or charging, insurance, maintenance, and repair exposure after warranty coverage ends.

Opportunity cost

Optionally compounds the upfront and monthly differences instead of pretending saved cash sits idle.

Lease cycles

Models repeated leases across a longer ownership horizon, with zero resale equity at the end.

Two honest views of true car cost

Start with what the car costs. Then account for what the cash could earn.

Purchase and financing+Operating costs−Ending vehicle value=Net ownership cost

Comparison cash / investment account+Net vehicle equity=Money available at the end

Net ownership cost is the concrete baseline. In Follow the money, choose whether to track the starting cash difference, later monthly differences, or both. You can hold that money as cash or apply an adjustable, hypothetical return before comparing final cash plus vehicle equity.

Data snapshot · 2026

Useful defaults, kept honest.

Manufacturer profiles use current five-year brand resale rankings. Gas, hybrid and EV adjustments use iSeeCars segment studies spanning 2019, 2023, 2025 and 2026. The latest study analyzed more than 950,000 five-year-old vehicles; it found 41.8% average depreciation, 35.4% for hybrids and 57.2% for EVs.

These are broad estimates, not a price quote for a specific trim, market or future date. You can override the five-year value in each option. Insurance, incentives, taxes, repairs and energy prices vary by person and location.

iSeeCars depreciation study ↗CarEdge brand rankings ↗AAA driving costs ↗Full methodology →

Research library

Understand the decision behind the number.

View all guides →

New vs. used

New vs. used car: how to compare the true cost (opens in a new tab)

A used car is usually cheaper when its lower purchase price and slower remaining depreciation outweigh its higher financing, maintenance, and repair costs. A new car can win when incentives, a low APR, warranty coverage, and stronger resale value close that gap.

Buy vs. lease

Buy vs. lease: compare the full cost, not the payment (opens in a new tab)

Leasing often lowers the near-term payment but normally leaves you with no vehicle equity. Buying usually costs more each month but leaves an asset you can keep or sell. The better option depends on mileage, ownership length, lease terms, financing, and the value of always driving a newer vehicle.

Cash vs. 0% APR

0% financing vs. cash: which offer actually costs less? (opens in a new tab)

At the same out-the-door price, true 0% financing is mathematically cheaper than paying all cash today because you retain the cash longer. But cash rebates, financing fees, eligibility rules, and investment risk can reverse the practical result.

Long auto loans

72-, 84-, and 96-month car loans: lower payment, higher risk (opens in a new tab)

A longer auto loan lowers the required monthly payment but normally increases total interest and keeps the balance above the vehicle's value for longer. The key question is not whether the payment fits—it is whether the car, loan balance, and your ownership plan still fit several years from now.

EV vs. gas

Electric vs. gas car: compare total cost with your local rates (opens in a new tab)

An EV tends to gain a cost advantage when annual mileage is high, home charging is inexpensive, and the purchase-price gap is modest. A gas vehicle can remain cheaper when electricity or public fast charging is costly, insurance is higher, or EV depreciation outweighs fuel and maintenance savings.

Trade-in equity

Trade-in value and negative equity: calculate what really carries over (opens in a new tab)

Trade-in equity is the vehicle's actual trade value minus the current loan payoff. Positive equity can reduce the next purchase. Negative equity must be paid in cash or added to the next financing, making the replacement vehicle more expensive before taxes, interest, or add-ons.

True ownership cost

The true cost of owning a car: what belongs in the calculation (opens in a new tab)

The true cost of a car is every dollar paid to acquire, finance, operate, insure, maintain, and repair it during the time you own it, minus the net equity left when the comparison ends. The monthly loan payment alone is not the cost because part of each payment builds vehicle equity.

Car affordability

How much car can I afford? Build the budget before the payment (opens in a new tab)

An affordable car is one whose total transportation cost fits your real household budget while preserving room for irregular repairs, insurance changes, and other priorities. There is no universal salary percentage that works for every buyer, so start with available monthly cash flow rather than the largest payment a lender will approve.

CPO vs. used

Certified pre-owned vs. used: what does the warranty really cover? (opens in a new tab)

A certified pre-owned label is valuable only when the included warranty, inspection, eligibility rules, and price premium are clear. Certification does not replace an independent inspection, and a dealer service contract is not the same thing as a manufacturer's warranty.

Calculator comparison

Best car cost calculators compared: which tool fits your decision? (opens in a new tab)

There is no single best car calculator for every question. CarCost is the best fit in this review for comparing two complete, personally configured scenarios—such as a new 0% loan versus a used cash purchase, buy versus lease, or gas versus EV—inside one auditable cash-flow and equity model. Edmunds, Kelley Blue Book, and AAA are stronger starting points for model-specific ownership estimates, while NerdWallet, Bankrate, and Calculator.net are efficient for focused loan calculations. CarEdge is particularly useful for model-level depreciation research.

Common questions

Car cost calculator FAQ

Direct answers to the questions buyers ask about new and used vehicles, loans, leases, trade-ins, depreciation, and investing the difference.

What does the CarCost calculator compare?

CarCost compares the full financial effect of two vehicle choices over the same ownership period. It includes purchase price, financing or lease payments, taxes, fees, trade-in equity, depreciation, resale value, fuel or electricity, insurance, maintenance, repairs, warranty coverage, and the optional growth of invested savings.

Is buying a used car always cheaper than buying new?

No. A used car often avoids the steepest early depreciation, but its interest rate, repair exposure, warranty coverage, and remaining resale value can change the result. A discounted new car with low-rate financing can sometimes cost less than a lightly used alternative.

Can I compare buying a car with leasing it?

Yes. CarCost models a purchase against a lease, including money factor, residual value, cap-cost reduction paid at signing, acquisition and disposition fees at each turn-in, and repeated lease cycles when the comparison period is longer than one lease.

Is zero-percent financing always the best deal?

Not automatically. Zero-percent financing removes loan interest, but the same vehicle may have a cash rebate or a lower negotiated price under a different offer. Compare the out-the-door price, financing cost, and what the cash retained could reasonably earn after taxes and risk.

How does a trade-in affect the calculation?

Trade-in equity equals the vehicle's trade value minus its loan payoff. Positive equity reduces the amount needed for the next car. Negative equity increases the amount that must be paid or rolled into the next loan, which raises cost and can extend the time spent owing more than the car is worth.

Why does the vehicle model year matter?

Model year lets CarCost estimate the vehicle's approximate age today and when you expect to sell it. That changes its remaining depreciation path and repair exposure: an older vehicle generally loses a different percentage of today's purchase price than a nearly new one over the same ownership period.

How does investing the difference work?

CarCost lets you choose whether to track the starting cash difference, later monthly differences, or both. Each selected difference enters the lower-cost option's comparison account when it becomes available. The year-by-year ledger separates money out, deposits, hypothetical growth, and ending balances before adding the account to net vehicle equity. The return is a scenario assumption, not a prediction or guarantee.

Are the depreciation estimates exact?

No. They are broad planning estimates based on manufacturer and powertrain research. Actual resale value depends on the model, trim, condition, mileage, incentives, local market, accident history, and future demand. Every estimate can be overridden.

Does CarCost save or sell my financial information?

The calculator runs in your browser and does not require an account. Your entries are saved only in your own browser's local storage so a reload does not erase them; they are never transmitted, and CarCost sets no cookies. Analytics events, when enabled, exclude the dollar amounts, rates, and mileage you enter. A printed or PDF report is generated by your browser.

Research you can verify

Published math. Named sources. Useful from day one.

In-depth guides: 10
Cited source pages: 29
Calculator price: Free