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New vs Used Car Calculator

Enter the new and used car prices to see the savings.

How it is calculated

The tool compares two purchase prices in dollars. The savings are savings = new price − used price, and the percentage saved is measured against the new price: savings % = (new − used) ÷ new × 100. The new price must be above zero and the used price cannot be negative.

This is only a sticker-price comparison. If the used car costs more than the new one, the savings show as a negative number (a used price of $35,000 against a new price of $32,000 gives −$3,000.00, or −9.38%), which can happen when the two cars are not comparable. Nothing else is included: no financing interest, insurance, repairs, warranty cover, fuel, sales tax or the resale value later. Those can change which car costs less over several years, so use the result as the starting gap, not the total cost of ownership.

Worked example

A new car is listed at $32,000 and a similar used one at $22,400. The savings are 32,000 − 22,400 = $9,600.00. As a share of the new price that is 9,600 ÷ 32,000 = 0.30, shown as 30.00%. So buying used cuts the purchase price by 30%. Whether that is a real saving depends on what you pay later in repairs, interest and lost warranty, which this calculation leaves out.

Try this example →

Common mistakes

  • Dividing by the used price in your head. The percentage here is the share of the new price, so 30% does not mean the new car costs 30% more.
  • Comparing a new car with a used car of a different model or trim, so the price gap reflects the cars and not the age.
  • Entering the monthly payment instead of the full price. Both fields are total purchase prices.
  • Calling the result total cost. Financing, insurance, repairs, tax and resale value are not in the figure.
  • Missing a negative result. A minus sign means the used price is higher than the new price, which usually points to an entry error.

About this calculator

Comparing a new versus used car starts with the purchase-price gap and what it represents in depreciation already absorbed. As a general rule of thumb, a new car loses roughly 20% of its value in the first year and around 15–20% each year after that (the steepest drop happening the moment it's driven off the lot), while a 2–3-year-old used car has already taken that first, biggest hit — meaning the buyer captures that depreciation as savings instead of the seller.

This calculator compares the two purchase prices you enter and shows both the flat dollar savings and the percentage saved by buying used instead of new. It does not model depreciation, financing or running costs itself; the savings figures are what car shoppers, personal-finance advisors, and dealership finance staff weigh sticker price against, alongside factors like warranty coverage, financing rates, and expected resale value.

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Comments (1)

  • Editorial team

    Treat the result as a ceiling on what used can save you. With a 40,000 new car and a 28,000 used one, the tool shows 12,000.00, or 30.00 percent. If you expect repairs, interest or lost warranty to cost 4,000 more on the used car, run the used price as 32,000, and the saving falls to 8,000.00, or 20.00 percent. Do the same for each car you shortlist. Which extra costs matter most in your comparison?

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