The short answer
A lightly used car often costs less over three years because the first owner absorbed the steepest depreciation. A new car can close the gap with lower financing rates, full warranty coverage and lower repair costs. The answer depends on the specific cars and rates you're comparing.
Where the costs differ
- Depreciation: steepest in a new car's first years.
- Financing: new-car rates and promotional offers are often lower than used-car rates.
- Repairs: new cars are under full warranty; used cars may be partially covered or not at all.
- Insurance: generally higher on the more valuable car.
- Taxes and fees: based on price, so higher on the new car.
A hypothetical example
Common mistakes
- Comparing sticker prices instead of three-year totals.
- Assuming used is always cheaper — rate differences can be significant.
- Ignoring what each car is worth at the end.
How Carvest helps
Carvest compares your current car with any replacement — new or used — over 36 months, including financing, depreciation, running costs and ending equity. Run it with each option to see the difference.
Compare new and used against your car
Run Carvest once for each option to see 36-month cost and ending equity side by side.
Compare My CarsCarvest provides estimates and decision-support information. Actual vehicle values, financing, insurance, repair costs and ownership expenses can vary.