The questions behind the comparison.
What the calculator counts, what it estimates, and where your own quotes should replace a default.
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.