New vs Used Car Cost Calculator
Compare financing a new car versus buying used with cash and investing the difference. Based on Canadian market depreciation curves and real ownership costs.
Comparison Mode
New Car vs Used Car Comparison
Compare financing a new car vs financing a used car and investing the payment difference
This calculator analyzes 5 years. Used car financing: 4 years, New car: 5 years.
Total Savings (Used Car)
$55K
New Car Monthly Payment
$782.646
Total Interest Paid
$7K
Investment Balance
$35K
Total Cost Breakdown Comparison
Total Cost of Ownership Comparison
5-year cost breakdown as percentage of total spending
New Car (Financed)
Net Cost: $58KUsed Car (Financed) + Investments
New Car (Financed)
Used Car (Financed)
Common Costs
Total Cost Comparison
New Car Net Cost
Used Car Net Cost
Key Insights
Monthly payment difference: $782.646 (new car) vs $435.22 (used car)
New car depreciation loss: $24K(+53.2%) over 5 years
Interest paid on new car loan: $7K
Investment growth at 7%: $35K
Maintenance cost difference: $4K extra for used car
Depreciation Curve (% Value Retained)
Depreciation Analysis:
• New suv: Loses +53.2%% of value over 5 years
• Used car: Loses +34.1%% of remaining value over 5 years
• Steeper curve = faster depreciation and higher ownership cost
Absolute Values & Investment Growth
Annual Cost Breakdown
Year-by-Year Analysis
| Year | New Car Value | New Car Total Cost | Used Car Value | Used Car Total Cost | Investment Balance | Net Difference |
|---|---|---|---|---|---|---|
| Year 1 | $35K | $20K | $18K | $13K | $8K | -$15K |
| Year 2 | $31K | $34K | $17K | $23K | $12K | -$24K |
| Year 3 | $27K | $49K | $16K | $34K | $18K | -$33K |
| Year 4 | $24K | $64K | $14K | $45K | $23K | -$42K |
| Year 5 | $21K | $79K | $13K | $50K | $35K | -$63K |
Depreciation Data Sources
Data Sources & Key Findings:
- • DriverNote.ca (Dec 2024): Compact cars average 40% depreciation over 5 years; SUVs at 41%; EVs nearly 49%
- • Car Deal Canada (July 2024): Trucks like Toyota Tacoma retain over 50% value after 5 years; luxury sedans depreciate 50%+
- • ThinkInsure: New cars depreciate 20-30% per year initially
- • Finder Canada (March 2024): Average 25% depreciation in year 1, then 17.5% annually
- • Carnation Canada (Sept 2024): Brand-new cars depreciate 40-50% within first five years
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About This Calculator
The Canadian Car Cost Calculator provides a comprehensive analysis of vehicle ownership costs, helping you make informed decisions about buying new vs used, leasing vs financing, and understanding the true total cost of car ownership beyond just the sticker price. Most Canadians dramatically underestimate the total cost of owning a vehicle - while the purchase price or monthly payment is obvious, the real costs include depreciation (often $3,000-$8,000 annually for new cars), fuel, insurance, maintenance, repairs, registration, and financing costs. This calculator models all these factors over your ownership timeline, revealing that the "cheap" new car with its attractive financing rate might actually cost more than the used alternative when all factors are considered. The calculator also accounts for Canadian-specific factors including provincial sales taxes (HST/GST/PST), differing insurance rates by province, winter tire requirements, and the harsh impact of Canadian winters on vehicle depreciation and maintenance costs. Whether you're a first-time car buyer, someone considering an electric vehicle, or an experienced car owner evaluating a replacement, this calculator provides the financial clarity you need.
Key Features
- Compare new vs used vehicle total cost of ownership
- Calculate depreciation curves for different vehicle types and ages
- Model financing vs leasing scenarios with APR calculations
- Account for fuel costs (gas, diesel, hybrid, electric)
- Estimate insurance costs by province and driver profile
- Calculate maintenance and repair costs by vehicle age
- Include provincial sales taxes and registration fees
- Show breakeven analysis for buying used vs new
When to Use This Calculator
- First-time car buyers determining realistic vehicle budgets
- Families comparing sedan vs SUV vs minivan total costs
- Individuals evaluating whether to buy used or stretch for new
- Commuters comparing gas vs hybrid vs electric vehicle economics
- Lease-end customers deciding whether to buy out, lease again, or purchase used
- Financial advisors helping clients make rational vehicle purchase decisions