1. What is the Used vs New Car Cost Comparison?

The Used vs New Car Cost Comparison helps determine the true cost of owning a used car versus a new car by accounting for purchase price, maintenance costs, and resale value.

2. How Does the Calculator Work?

The calculator uses the following equation:

Where:

• \( Price_{used} \) — Purchase price of the used car
• \( Maintenance \) — Estimated maintenance costs over ownership period
• \( Resale \) — Estimated resale value at end of ownership

Explanation: The equation accounts for both upfront and ongoing costs of used car ownership, offset by the potential resale value.

3. Importance of Total Cost Calculation

Details: Calculating the true cost of ownership helps make informed decisions between buying new or used vehicles, considering all financial factors.

4. Using the Calculator

Tips: Enter the used car price in dollars, estimated maintenance costs in dollars, and estimated resale value in dollars. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why consider maintenance costs for used cars?
A: Used cars typically require more maintenance than new cars, which can significantly impact the total cost of ownership.

Q2: How do I estimate maintenance costs?
A: Research common maintenance issues for the specific make/model/year, and consider getting a pre-purchase inspection.

Q3: What affects resale value?
A: Brand reputation, vehicle condition, mileage, market demand, and how well you maintain the vehicle.

Q4: Should I compare this to new car costs?
A: Yes, for a complete comparison you should also calculate new car total cost (purchase price + maintenance - resale).

Q5: Are there other factors to consider?
A: Yes, consider warranty coverage, financing rates, insurance costs, and personal preferences when making your decision.