Smart Spending

Used, New, or Lease?

Compare depreciation, interest, and opportunity cost side by side. Fill out at least two profiles to see the true cost of ownership.

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New Car

New car rates are typically lower.

Used Car

Used car rates are typically higher.

Leased Car

Down payment, acquisition fee, 1st month, etc.

Shared Parameters

Annual return if you invested the payment difference instead. Historical S&P 500 average is ~10%; 7–8% is a conservative estimate.

True Cost Comparison

Verdict
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Monthly Payment
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Total Money Paid for Car (Out of Pocket)
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Total Interest Paid
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Total Sunk Costs (Depreciation / Lease Payments)
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Investment Opportunity Cost
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True Economic Cost
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You Chose a Car that Would Save You Money... What Now?

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How It's Calculated

Monthly Payment: Standard amortized loan - P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1].
Depreciation Curve: New cars drop 20% in Year 1, then 15% each subsequent year. Used cars drop a flat 15% a year. Leases have 100% loss (all money paid is a sunk cost).
Opportunity Cost: We look at the actual cash out of pocket (down payments + monthlies) over the exact duration you hold the car. That money could have been in the market compounding. The "cheapest" option gets an Opportunity Cost of $0, and the more expensive options are penalized by the investment gains you forfeited by choosing them.
True Cost: Total interest paid + total asset depreciation + opportunity cost penalty. This represents the total wealth you sacrificed.
Winning Decision
Calculating...