HaatBeat Calculators

Buy a new car or a used one?

A new car loses value fastest in its first years; a used car costs less but may need more upkeep. See both over the years you would keep the car.

Also known as: New or second-hand car calculator.

Any currency
₹
On-road price of the new car.
₹
Price of the used car you are considering.
₹
Servicing, repairs and insurance a year. Fuel is left out when both cars use about the same.
₹
Older cars often need more repairs.
years
1 to 20 years.
More assumptions 3
%
New cars often lose 15% to 20% a year in the first years. 0% to 99%.
%
Older cars usually lose value more slowly. 0% to 99%.
% a year
An assumption, not a promise. 0% to 50%.
Used car ahead after 5 years
₹3,80,988
3.81 lakh

Under these assumptions, the used car ends about ₹3,80,988 ahead after 5 years, counting what each car is still worth plus the money saved by spending less. The new car would then be worth about ₹4,43,705 and the used car about ₹3,54,294.

After 5 years: car value plus money saved
New car: net worth₹5,61,037
Used car: net worth₹9,42,025
New car: value then₹4,43,705
Used car: value then₹3,54,294
Used car ahead by₹3,80,988
Then change the inputs to compare two options side by side.
Illustrative estimate. Values fall by a steady yearly rate; running costs are yearly and paid at year end; money not spent is saved at a steady return. Fuel, loans, registration and resale costs are not included unless you add them to the running costs.

Value by year

02.5 lakh5 lakh7.5 lakh10 lakh012345
New carUsed car
YearNew: car valueUsed: car valueNew: net worthUsed: net worth
1₹8,50,000₹5,40,000₹8,70,000₹9,72,000
2₹7,22,500₹4,86,000₹7,64,100₹9,52,560
3₹6,14,125₹4,37,400₹6,79,053₹9,41,285
4₹5,22,006₹3,93,660₹6,12,128₹9,37,856
5₹4,43,705₹3,54,294₹5,61,037₹9,42,025

Calculators behind this question

Beyond the numbers

The maths shows one side. These are the things only you can weigh.

  • Reliability and peace of mindA new car comes with a warranty and a known history. Fewer surprise breakdowns can matter a lot if the car is needed every day.
  • Safety featuresNewer models often have better safety equipment. For a family car, that may outweigh the numbers.
  • Knowing the historyA used car with a full service record and an independent inspection is a much safer buy than one without.
  • The pleasure of newChoosing the colour, being the first owner and the new-car feeling are real joys. Only you can say what they are worth.
  • Time and hassleFinding a good used car takes effort, and repairs take time. Some people would rather pay to avoid that.

How it's calculated

Car value after y years = price × (1 − yearly fall)ʸ The used-car buyer saves the price difference; each year whoever spends less on upkeep saves the gap Net worth = car value + money saved

Both households start with the same money. Money not spent grows at your assumed return. Comparing what each owns at the end, the car plus savings, shows the true cost of each choice.

Assumptions

  • Values fall by a steady yearly rate; real resale prices vary with model, condition and demand.
  • Upkeep and insurance are yearly amounts paid at the end of each year.
  • Fuel, registration, loans and selling costs are not included unless added to the running costs.
  • Money saved grows at a steady yearly return.

Worked example

A 10 lakh rupee new car losing 15% a year and costing 40,000 rupees a year to keep, against a 6 lakh rupee used car losing 10% a year and costing 60,000 rupees: after 5 years, with savings at 8%, the used car ends about 3.81 lakh rupees ahead. The new car would then be worth about 4.44 lakh and the used car about 3.54 lakh.

Questions

Why does the new car fall behind?

Because a new car loses the most value in its first few years, and the extra money spent on it could have been saved instead.

When does a new car make sense in the numbers?

When the used car would need much more upkeep, loses value quickly, or the price gap is small. Try those values to see.

Should I include fuel?

Only if the two cars use noticeably different amounts. Add the yearly difference to the running cost of the thirstier car.

What about a loan?

If either car is bought on a loan, add the yearly interest to its running costs, or use the car cash or loan page alongside this one.

Sources

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