Car Cost Calculator - New vs. Old

The Car Cost Calculator compares the costs associated with owning a new car versus an old car over a three-year period.

For the old car, which has a starting sales value of $20,000, the depreciation per year is set at 15%, resulting in a loss of $3,000 in the first year, $2,550 in the second year, and $2,168 in the third year, totaling $7,718 over the three years. Financing costs using savings at a 100% share of value and a 2% interest rate yield costs of $400 in the first year, $340 in the second year, and $289 in the third year, culminating in $1,029. If financed through a loan with a 0% share of value and a 5% interest rate, the cost remains $0 across all three years. Insurance costs are consistently $800 each year, leading to a total of $2,400 over three years. Road tax is $200 annually, summing to $600. Fuel costs, based on a distance of 20,000 kilometers at $0.15 per kilometer, amount to $3,000 each year, totaling $9,000. Additionally, service costs are $800, new tires cost $1,000, and repairs are estimated at $1,000 each year, leading to a total of $3,000 for repairs over three years. All these expenses culminate in total costs of $9,400 in the first year, $8,690 in the second year, and $8,457 in the third year, resulting in an overall cost of $26,547 for the old car.

In contrast, the new car starts with a purchase price of $40,000 and experiences a higher depreciation rate of 18%. This results in a depreciation cost of $7,200 in the first year, $5,904 in the second year, and $4,841 in the third year, totaling $17,945 over three years. Financing costs using savings at a 50% share of value and a 2% interest rate yield $200 in the first year, $170 in the second year, and $145 in the third year, amounting to $515. When financed through a loan at a 50% share of value and a 5% interest rate, the costs are $500 in the first year, $425 in the second year, and $361 in the third year, leading to a total of $1,286. Insurance for the new car is higher at $1,000 per year, resulting in $3,000 over three years. Road tax remains consistent at $200 annually, totaling $600. Fuel costs for the new car are lower, at $0.12 per kilometer, leading to $2,400 each year, or $7,200 over three years. Service costs are also $1,000 annually, and new tires cost $1,000. There are no repair costs for the new car. The total costs for the new car are $11,500 in the first year, $11,099 in the second year, and $9,947 in the third year, totaling $32,546 over the three years.

This comparison illustrates the financial implications of owning an old car versus a new car, with the old car costing $26,547 and the new car costing $32,546 over the same period.