Find out what your car really costs in 60 seconds.

New cars take the first depreciation hit

A new car begins losing value as soon as it becomes a used car. The exact drop depends on the model, demand, mileage and the market, but the first three years are typically the steepest part of the curve. A commonly used rule of thumb is that a new vehicle may lose about 16% of its value in the first year and around a third by year three. Some desirable models do much better, while heavily discounted or fast-changing models can do worse.

That loss is easy to overlook because it does not arrive as a bill. It appears later, when you sell or trade the car. If you buy after the first owner has absorbed the steepest decline, each remaining year may cost less in lost value. That is the main financial argument for buying used.

Certified pre-owned can be the middle path

A certified pre-owned vehicle, usually called CPO, is a used car that meets an automaker's age and mileage rules, passes an inspection and includes some factory-backed warranty coverage. It usually costs more than a similar non-certified used car, but less than a new one.

The premium can make sense when you want protection against a major early repair without paying the full new-car price. Read the details: coverage length, deductibles, excluded parts and roadside assistance differ by brand. Also compare the CPO price with a new-car quote. Special financing or a manufacturer rebate can sometimes make the gap surprisingly small.

When buying new actually makes sense

New is not automatically wasteful. It can be the better choice when you plan to keep the vehicle well beyond the loan, need the latest safety or accessibility features, or value a full warranty and a known maintenance history. New-car promotional rates may also be much lower than used-car rates. A cheaper loan can offset part of the higher price, especially when used-car financing is expensive.

Reliability matters too. A predictable new vehicle may be worth more to someone whose job, family schedule or location makes an unexpected repair especially disruptive. The key is to price that peace of mind instead of assuming it is free.

Insurance can widen the gap

A more valuable new car often costs more to insure because it costs more to repair or replace. A financed vehicle may also require comprehensive and collision coverage. An older car can be cheaper to insure, although advanced parts, theft rates and driver-specific factors can erase that advantage. Get quotes for the exact year, trim and coverage before deciding.

A five-year example

Imagine choosing between a $35,000 new car and a $22,000 three-year-old version. To keep the comparison readable, assume both travel 12,000 miles a year and use the same amount of fuel. We will leave sales tax and financing out because those vary by buyer, then add them in the calculator for a personal result.

• New car: If it is worth $18,000 after five years, depreciation is $17,000. At $180 a month for insurance and $800 a year for maintenance, those three costs total about $31,800.
• Used car: If it is worth $11,000 five years later, depreciation is $11,000. At $135 a month for insurance and $1,400 a year for maintenance, the same three costs total about $26,100.

Under these assumptions, the used car is about $5,700 cheaper over five years before fuel, taxes, fees and interest. That is meaningful, but it is not guaranteed. One major repair, a stronger resale price for the new car or a large financing-rate difference could narrow the gap. The example also shows why purchase price alone is incomplete: the used car saves $13,000 at the dealer, but its higher maintenance and continued depreciation reduce the five-year advantage.

Updated September 29, 2026 with AAA's newest national data

What the newest national data says

In September 2026, AAA published its annual Your Driving Costs analysis: 34 popular models across seven categories, assuming five years and 75,000 miles. The headline number is $12,863 per year, $1,071.92 a month, to own and operate a new vehicle. Depreciation alone averages $4,422 a year, roughly a third of the total. AAA's 2026 release has the full breakdown.

This year's study folded EVs and hybrids directly into the same categories as gas models for the first time, and the results surprised a lot of people. EV charging costs up to 70% less than gasoline, yet EVs cost more than $3,000 extra per year to own than comparable gas models, because they depreciate faster. Fuel savings could not overcome the value they lose.

The real winners were hybrids: meaningful fuel savings with smaller tradeoffs, costing less per year than gas-only models among medium sedans, compact SUVs, medium SUVs and pickup trucks. If your goal is the lowest total cost rather than a powertrain statement, a hybrid deserves a hard look.

One more input worth knowing: at the time of the study, regular gasoline averaged $4.15 per gallon (up nearly 32% from 2025) while home electricity averaged 18 cents per kWh (up under 8%). Energy prices move, rerun your numbers with today's local prices, not last year's article.

Start beyond the sticker price

Many electric vehicles carry a higher purchase price than a broadly similar gas vehicle, although that gap varies widely by size, brand and incentives. The EV may recover some of the difference through lower energy and maintenance costs. Whether it catches up during your ownership depends on how much you drive, where you charge and what each vehicle is worth when you sell it.

Do not compare only the monthly payments. Include the down payment, interest, taxes and any home-charging equipment. Then subtract only an incentive you are confident you qualify for. A credit that arrives later does not reduce the amount financed unless the seller can legally apply it at the point of sale.

Home charging changes the calculation

Charging at home is usually the least expensive and most convenient pattern. Estimate energy use by dividing annual miles by the vehicle's miles per kilowatt-hour, then multiply by your utility's price per kilowatt-hour. Check whether your rate changes by time of day. Installation of a 240-volt outlet or charging unit can add an upfront cost, especially if the electrical panel needs work.

Public fast charging often costs more than home electricity. It can still be useful on road trips, but a driver who relies on it every week may give up much of the EV's fuel savings. Use your real mix: for example, 80% home charging and 20% public charging rather than assuming every mile receives the cheapest rate.

Maintenance is simpler, not zero

EVs do not need oil changes and have fewer moving powertrain parts. Regenerative braking may also reduce brake wear. They still need tires, cabin filters, alignments, suspension work and cooling-system service. Their weight and quick acceleration can wear tires faster for some drivers, so include a realistic tire allowance.

Battery degradation is normally gradual rather than a sudden failure. Range may decline over time, with heat, charging habits and mileage affecting the pace. Full battery replacement is expensive, but it is not a routine ownership expense for most newer EVs during the typical factory battery-warranty period. Check the exact warranty, its capacity threshold and whether it transfers to a second owner, especially on a used EV.

Insurance and tax credits need current quotes

Some EVs cost more to insure because repair procedures, parts prices and replacement values can be higher. Others are competitive with gas models. The driver's record, location and trim can matter more than the power source, so compare matching quotes with the same limits and deductibles.

The former federal New Clean Vehicle Credit is not available for vehicles acquired after September 30, 2025, do not subtract it from a 2026 purchase. State, local and utility incentives may still exist, and eligibility can depend on the vehicle, battery sourcing, purchase price, income, location or whether the car is new or used. Check current official rules before buying, and never count a credit based on an old article or an advertisement that says only “up to.”

A five-year example

Consider a $40,000 EV and a $34,000 gas car, each driven 12,000 miles a year. These are sample assumptions, not forecasts. Suppose the EV averages 3.3 miles per kilowatt-hour and home electricity costs 18 cents per kilowatt-hour. Its five-year charging cost is roughly $3,270. A gas car averaging 30 mpg at $4.15 per gallon uses about $8,300 of fuel over the same 60,000 miles.

• EV: $21,000 depreciation based on a $19,000 resale value, about $3,270 for home charging, $3,250 for maintenance and $12,000 for insurance totals roughly $39,520.
• Gas car: $17,000 depreciation based on a $17,000 resale value, $8,300 for fuel, $5,500 for maintenance and $10,500 for insurance totals roughly $41,300.

The EV comes out about $1,780 lower in this narrow example before taxes, financing or a charger, and note the EV's $4,000 depreciation handicap mirrors what AAA found nationally. If public charging raises energy cost, the gas car may lead. Resale value is especially important: a few thousand dollars of difference there can outweigh years of fuel savings. And remember the hybrid middle ground: in AAA's data, hybrids beat gas-only models on annual cost in four of seven categories.

What depreciation really means

Depreciation is the difference between what you pay for a vehicle and what it is worth when you sell or trade it. Buy for $35,000 and sell for $18,000, and you have absorbed $17,000 of depreciation. It is a real ownership cost even though money never leaves your account each month under that label.

For many vehicles, depreciation is the largest five-year cost, often larger than fuel or routine maintenance. That is why a car with excellent mileage can still be expensive to own if its resale value falls quickly. It is also why a used vehicle with a higher repair budget can sometimes cost less overall.

The curve is usually steepest early

New vehicles typically lose value fastest during years one through three. A rough rule of thumb is that some may lose around 16% in the first year and roughly 30% by year three, but there is no universal schedule. Supply shortages, redesigns, incentives, fuel prices and local demand can all move used-car values.

After the early drop, depreciation often slows in dollar terms because there is less value left to lose. Eventually age, mileage and condition matter more than whether the car was recently new. Buying a two- or three-year-old vehicle can let the first owner take the steepest hit, but a high used price can erase that benefit. Always compare today's actual prices.

Some vehicles hold value better than others

Trucks, durable body-on-frame SUVs and models from brands known for long-term reliability often retain value well, particularly where buyers want their towing ability or off-road capability. Popular vehicles with strong dealer networks, affordable parts and slow redesign cycles can also be easier to resell.

Luxury sedans have often depreciated faster because their high starting prices, costly repairs and rapid feature changes shrink the pool of used buyers. Electric vehicles have also experienced steep depreciation in some recent periods, influenced by price cuts on new models, changing incentives and fast improvements in range and charging. That history does not predict every EV: brand, battery health, local demand and the price paid still matter.

A “best resale” reputation is useful, not permanent. If a popular model sells above sticker or comes with unfavorable financing, paying extra today can cancel out a stronger resale price later.

Mileage and condition shape the final number

Mileage is a quick signal of wear. Crossing common mileage milestones can reduce buyer demand, especially if the car is approaching expensive scheduled service or the end of a warranty. Driving fewer miles may preserve value, but owning a car you avoid using is not automatically economical. Estimate mileage honestly rather than forcing it to fit a target resale price.

Condition can separate two otherwise identical cars. Accident history, smoke odor, neglected paint, worn interiors, mismatched tires and missing service records can all reduce an offer. Mechanical modifications may appeal to a small audience but discourage mainstream buyers. A clean history and documented maintenance make the vehicle easier to trust.

Practical ways to reduce the hit

• Buy the right point on the curve. Compare new, CPO and ordinary used prices instead of assuming one category always wins.
• Choose broadly useful specifications. Extreme colors, niche options and expensive custom work may not return their cost at resale.
• Maintain and document the car. Follow the service schedule, keep receipts, fix small damage and address warning lights before they become larger problems.
• Avoid rolling negative equity forward. Trading too early can move an unpaid balance into the next loan and hide the cost in a larger payment.
• Check resale estimates more than once. Use conservative values and test a lower number before committing to the purchase.

The simplest defense is to keep a reliable car longer. Spreading the early depreciation across more years can lower the average annual cost, especially after the loan is paid. That works only if the vehicle still fits your needs and repair costs remain reasonable.

Cost example updated November 7, 2026

Start with the price you will actually pay

For a representative base-model example, use $38,630 including destination before sales tax, registration and options. A different trim, wheel package, paint choice or driver-assistance subscription can move the number quickly, so replace this starting point with a written quote.

The down payment does not make the car cheaper; it changes how much you finance. Compare the full amount paid, including interest, rather than treating a lower payment as savings. If a home charger or electrical upgrade is needed, include it with the purchase costs instead of hiding it inside the electric bill.

Insurance is often the surprise

Teslas can cost more than an ordinary gas sedan to insure because collision repairs may involve expensive parts, sensors, cameras and specialized labor. A rough national estimate is not enough: premiums depend heavily on the driver, ZIP code, coverage and insurer. Get quotes for the exact Model 3 trim and a comparable Honda Accord or Toyota Camry with matching deductibles and limits.

In the example below, the Model 3 costs $220 a month to insure versus $170 a month for the gas sedan. That $50 gap becomes $3,000 over five years, enough to erase a large part of the charging advantage.

Home charging usually beats gasoline

At 12,000 miles a year, a Model 3 averaging 3.8 miles per kilowatt-hour uses about 3,160 kWh annually before allowing for charging losses. At 16 cents per kWh, five years of home charging is roughly $2,500. A comparable gas sedan averaging 32 mpg at $4.153 per gallon (the EIA national average for the week ending November 2, 2026) uses about $7,787 of gasoline over the same 60,000 miles.

That is about $5,300 of energy savings for the Tesla, but the result changes with utility rates and charging habits. Frequent public fast charging can cost much more than home charging. Add a one-time charger and installation allowance, $1,200 in this example, unless suitable equipment is already available.

Maintenance is lower, but tires still count

The Model 3 avoids oil changes, spark plugs and many engine services. It still needs cabin filters, brake-fluid checks, wipers, alignments, suspension work and tires. EV weight and instant torque can accelerate tire wear, especially with larger wheels or hard acceleration. A replacement set can turn a “low-maintenance” year into an expensive one.

For a five-year budget, this example allows $3,500 for Model 3 maintenance and tires versus $5,000 for the gas sedan. That is a planning allowance, not a warranty forecast; check tire prices for the chosen wheel size and keep a separate repair cushion.

Depreciation can decide the winner

Assume the $38,630 Model 3 is worth $17,500 after five years. That creates $21,130 of depreciation. For a $30,000 Accord or Camry worth $15,500 after five years, depreciation is $14,500. The Tesla saves on energy and maintenance in this scenario, but loses more value.

Resale value is the least certain number in the comparison. New-car price changes, battery technology, incentives, mileage and used-EV demand can all move it. Run a second Model 3 scenario with the resale estimate 10% lower so the decision does not depend on an optimistic forecast.

A realistic five-year comparison

This worked example excludes loan interest so financing offers can be compared separately. It assumes 12,000 miles per year, 7% sales tax and $900 in title and dealer fees.

• Tesla Model 3: $21,130 depreciation, $13,200 insurance, $2,500 home charging, $3,500 maintenance and tires, $1,200 charging equipment, and about $3,600 in tax and fees totals roughly $45,130.
• Honda Accord or Toyota Camry: $14,500 depreciation, $10,200 insurance, $7,787 gasoline, $5,000 maintenance, and about $3,000 in tax and fees totals roughly $40,500.

Under these assumptions, the gas sedan is about $4,800 cheaper over five years. The Model 3 could close the gap with a lower insurance quote, cheaper electricity, a better purchase price or stronger resale value. The gas sedan could pull farther ahead if the Tesla relies heavily on public fast charging or needs more frequent tires.

What about tax credits?

For a vehicle acquired in 2026, do not subtract the former federal New Clean Vehicle Credit. IRS guidance says that credit is not available for vehicles acquired after September 30, 2025. State, local or utility rebates may still apply, and some programs have income, vehicle-price, residence or charger-installation rules. Count only a benefit you have confirmed for your exact purchase and location.

How leasing works in plain English

A lease is a long-term rental with a purchase option. Your payment covers the vehicle's expected loss in value during the lease, a finance charge, taxes and fees. The leasing company owns the car. At the end, you usually return it or buy it for the contract's residual value.

That structure creates a lower payment because you are not paying off the entire car. It also means the payment alone is incomplete. Add the amount due at signing, acquisition fee, taxes, registration, required coverage, mileage charges, wear charges and any disposition fee. A large down payment can make an advertisement look cheap without reducing the total by nearly as much.

Monthly payment versus true total cost

Buying usually produces a higher payment because each payment builds ownership. Once the loan ends, the car remains an asset you can keep, sell or trade. Leasing usually keeps the payment lower, but returning the car leaves no equity. Starting another lease also restarts the cycle of upfront charges and monthly payments.

To compare fairly, use the same time horizon. A three-year lease should not be compared with only the first three years of a five-year loan without also crediting the buyer for the car's remaining value. For a ten-year decision, include the payment-free years that follow a five-year loan.

A worked Honda Civic example

Suppose a Honda Civic has a $25,790 price. These are illustrative terms, not a current offer, and they exclude sales tax, registration, insurance, fuel and maintenance so the financing structure stays visible.

• Three-year lease: $279 a month for 36 months plus $3,499 due at signing equals $13,543. Return the Civic and you own nothing. If the allowance is 10,000 miles a year but you drive 12,000, a 20-cent overage charge adds $1,200, before wear or disposition fees.
• Five-year loan: Put 10% down and finance the remaining $23,211 for 60 months at 6.5%. The payment is about $454 a month, and total principal plus interest and down payment is about $29,800. If the Civic is worth $13,000 after five years, the net cost of buying and financing is about $16,800 before tax and running costs.
• Buy and hold for ten years: Keep the same Civic for five payment-free years after the loan. If it is worth $6,000 at year ten, the purchase-and-interest cost net of resale is about $23,800, or roughly $198 a month spread across ten years. Maintenance will rise with age, but the capital cost is much lower than continuously replacing the car.

The lease has the lowest displayed payment and the lowest three-year cash outlay. Buying becomes more competitive once the Civic's resale value is counted. Keeping it for ten years usually wins the long game because one purchase is spread over far more months.

When leasing can make sense

• You always want a new car. If you would replace a purchased car every three years anyway, a well-priced lease may reduce the resale hassle and keep you under factory warranty.
• Your annual mileage is predictably low. Drivers who stay well inside the allowance avoid one of leasing's largest risks.
• The vehicle has a strong subsidized lease. Manufacturer support can create a favorable payment or residual value that an ordinary loan cannot match.
• The car is used for business. Lease payments may receive different tax treatment in some situations, but the rules depend on business use, recordkeeping and the taxpayer. Ask a qualified tax professional rather than assuming the whole payment is deductible.

When buying usually wins

Buying tends to work better when you drive a lot, want to customize the car, dislike end-of-term inspections or plan to keep the vehicle after the loan is gone. It also protects you from repeatedly paying acquisition and disposition charges. The longer a reliable car stays useful, the more years you can spread its early depreciation and loan interest across.

Buying also gives you flexibility. You can sell when the market is favorable, keep driving after a job or family change, or accept cosmetic wear without answering to a leasing company. The tradeoff is taking responsibility for resale value and repairs after warranty coverage ends.

The mileage trap and end-of-lease fees

A 10,000-mile allowance sounds generous until a new commute, road trip or family obligation pushes the odometer higher. At 20 cents per excess mile, 6,000 extra miles cost $1,200. Buying extra miles in advance may be cheaper, but unused miles usually do not come back as cash.

At turn-in, the lessor may also charge for excess wear, missing equipment, unrepaired damage and a disposition fee. Tires near the wear limit can become a four-figure surprise. Read the contract's wear guide before signing, photograph the car at delivery and return, and schedule any offered pre-inspection early enough to compare repair options.

Published September 29, 2026

Depreciation flattens, payments disappear

A new car loses value fastest in years one through three. But depreciation is measured in dollars, and there is less value left to lose each year. By year six, the annual drop is a fraction of the early years. Meanwhile the loan is gone: years six through ten have no payment at all. Those two facts together make long ownership dramatically cheaper per year than serial three- or five-year replacement.

This is also why the early years feel expensive and the later years feel cheap. The feeling is accurate. The mistake is trading the car right when it gets cheap.

A worked ten-year example

Buy a $35,000 car: 10% down ($3,500), finance $31,500 for 60 months at 6.5%. The payment is about $616 a month, so purchase plus interest totals roughly $40,460. These are sample assumptions, not forecasts.

• Sell after 5 years for $17,500. Net capital cost: about $22,960, or $4,592 per year before fuel, insurance and maintenance.
• Keep for 10 years and sell for $6,000. Net capital cost: about $34,460, or $3,446 per year, roughly 25% cheaper per year on the car itself.

Now add the honest counterweight: maintenance rises with age. Budget roughly $4,000 for years one through five (tires, brakes, scheduled service) and roughly $8,000–$10,000 for years six through ten (a second set of tires, suspension work, alternator or starter, cooling system). Even after doubling the repair budget, the ten-year path usually wins by thousands, because one purchase is spread over twice as many years.

Insurance can help too: as the car's value falls, many drivers sensibly reduce collision coverage, trimming the premium in the later years.

The repair-vs.-replace rule of thumb

Keep the car while a year's repairs cost comfortably less than a year of new-car payments. Twelve months of $616 payments is $7,392, a $2,500 repair year is not even close to justifying a trade. Replace when the math flips: chronic breakdowns, a repair bill approaching the car's remaining value, or rust and structural issues that no repair truly fixes.

Reliability is the multiplier. A boring, well-maintained car with a strong parts supply is the ideal ten-year candidate. A car that strands you has a cost no spreadsheet captures.

When keeping it is the wrong call

• Safety you actually need. If your driving changed, a new teen driver in the house, far more highway miles, modern driver-assistance features can be worth paying for.
• The car no longer fits. A two-seater after twins arrive is not a math problem.
• Repairs exceed the car's value. A $5,000 transmission on a $4,000 car is a donation, not maintenance.
• Corrosion. Mechanical parts can be replaced; a rusted structure cannot be trusted.

Published October 1, 2026

Why used EVs got so cheap

Three forces pushed used EV prices down at once. Automakers cut new-EV sticker prices to move inventory. The federal New Clean Vehicle Credit ended for vehicles acquired after September 30, 2025, which cooled new-EV demand and dragged resale values with it. And steady battery improvements made three-year-old models feel like last year's technology.

AAA's September 2026 Your Driving Costs study measured the result: electric medium sedans lose about $6,786 a year to depreciation, roughly double the $3,330 a comparable gas sedan loses. That is brutal for the first owner. It is an opportunity for the second one, because the steepest drop happens in the first few years and you arrive after it.

The depreciation flip

Depreciation is the largest single cost of owning a new car, and EVs have the most of it. Buying used simply means paying for the flatter part of the curve. A three-year-old EV has already shed the value it was always going to shed quickly; what remains depreciates more like an ordinary used car.

This only works if the purchase price reflects reality. Check asking prices against actual completed sales, not dealer listings, and compare several examples of the same model year. A used EV priced like a used gas car of the same age is the deal. A used EV priced like it is still new is not.

Battery health is the one inspection that matters

Everything else on a used-car checklist still applies, tires, brakes, accident history, title status, but the battery deserves its own check. Ask for a battery health report showing the state of health as a percentage of original capacity. Some degradation is normal; a three-year-old car showing 90-plus percent is typical, while a much lower reading should reduce the price or end the deal.

Federal rules require EV battery warranties of at least 8 years or 100,000 miles, so a three-year-old car usually carries meaningful coverage. Confirm the warranty transfers to the new owner and check exactly what it covers, most cover outright failure and excessive degradation, not gradual normal loss.

Home charging makes or breaks the math

AAA puts annual charging for an electric medium sedan at about $712 versus $2,215 in gasoline for the comparable gas car. That $1,500-a-year advantage assumes home charging at residential electricity rates. It shrinks fast if you depend on public fast chargers, which can cost several times more per kilowatt-hour, sometimes approaching the cost of gasoline itself.

Before buying, confirm where the car will charge overnight. A garage or driveway with access to even a standard outlet changes the economics completely. Apartment dwellers without dedicated parking should price their realistic charging mix first; the bargain can evaporate without cheap home electricity.

The honest costs: insurance and tires

Two line items run against the used EV. Insurance can cost more than for a comparable gas car because repairs may involve expensive battery-adjacent components, sensors and specialized labor, get a quote for the exact vehicle before committing. Tires also wear faster on EVs: the cars are heavier and deliver instant torque, so budget for replacements sooner than the gas-car schedule suggests.

Neither cost kills the deal, but both belong in the estimate. A used EV that saves $1,500 a year on energy while costing $400 more on insurance and an extra tire set still comes out ahead, you just have to count all of it.

An illustrative five-year comparison

These are planning figures, not a current offer. Both cars are three years old at purchase, driven 12,000 miles a year, with home charging available for the EV.

• Used EV, $23,000 purchase: worth about $8,000 five years later, so $15,000 of depreciation; home charging about $750 a year ($3,750); insurance about $1,800 a year ($9,000); maintenance and tires about $4,500. Total: roughly $32,250.
• Used gas sedan, $21,000 purchase: worth about $9,500 five years later, so $11,500 of depreciation; gasoline about $2,200 a year ($11,000); insurance about $1,500 a year ($7,500); maintenance about $6,000. Total: roughly $36,000.

The used EV wins by roughly $3,750 over five years, but nearly all of that comes from cheap home charging. Without it, the fuel advantage narrows and the gas car can pull even or ahead. Run both scenarios with your own electricity rate before deciding.

Which used EVs to target

• Two to four years old. Old enough for the steep early depreciation to be spent, young enough to keep years of battery warranty.
• Mainstream models with strong parts support. High-volume cars are cheaper to repair and easier to get battery health data for.
• One-owner, clean-title cars. Flood or salvage history is a hard no on any EV, water and high-voltage systems do not mix.
• A pre-purchase inspection by a shop that knows EVs. A general mechanic can check the chassis; the battery report needs someone who reads them daily.

Published October 1, 2026

It's not hybrids. It's specific hybrids.

Someone will tell you hybrids aren't selling and you should go hunting for discounts. Half true. Toyota's hybrids sell just fine, the 2026 RAV4 went hybrid-only, and nobody is discounting Priuses out of desperation. The deals live on specific models that missed: plug-in hybrids from brands buyers never associated with the technology, and leftover prior model years sitting on lots while the new ones roll in.

The poster child: the Dodge Hornet plug-in hybrid

An iSeeCars analysis of more than 2.6 million new-car listings found the 2024 Dodge Hornet Plug-In Hybrid sitting at the top of the leftover-inventory list, 82.1% of that model year's inventory was still available when they checked. The Jeep Grand Cherokee wasn't far behind, with 70.8% of its 2024 inventory remaining. When a car has watched two selling seasons pass from the same spot on the lot, the dealer is ready to talk price.

Where the manufacturer money is

Beyond individual haggling, automakers are putting cash on the hood of slow-moving electrified models. Offers spotted this fall include:

• Mazda CX-70 and CX-90 plug-in hybrids: $5,000 in customer cash or 0% financing for 72 months.
• Mitsubishi Outlander plug-in hybrid (2025): $1,000 cash for returning Mitsubishi owners or buyers switching from another brand.
• Hyundai Santa Fe: 0% financing for 60 months plus $1,500 off across the model line, hybrid trims included.

These programs change month to month, September's numbers won't be October's, but the pattern holds: electrified models with excess inventory get the aggressive offers.

How to play the leftover lot

• Target prior model years. A new 2024 sitting on the lot in fall 2026 costs the dealer floorplan interest every month.
• Check the warranty start date. Some "new" leftovers were reported sold months ago, which starts the warranty clock early. Know what coverage you're actually getting.
• Watch the add-ons. A $4,000 discount means nothing if the paperwork adds $3,000 in dealer fees, paint protection and nitrogen-filled tires. Get the out-the-door number before you celebrate.
• Compare against the new model year. Sometimes the discount on the leftover is smaller than the improvements in the newer car. Price both.

What a discount does to the five-year math

This is where it connects to everything else on this site: purchase price is the single biggest input in the true-cost equation. A $4,000 discount isn't just $4,000, it also means less sales tax, a smaller loan, less interest, and slightly lower insurance. Over five years of ownership, $4,000 off the purchase price can easily be worth $5,000 or more in total savings.

The hybrid still has to earn its premium first. Edmunds' example: a hybrid Civic costs about $2,700 more than the non-hybrid version and saves roughly $450 a year on gas, a six-year payback at full price. Knock $2,000 off the hybrid through a slow-seller discount and the payback drops under two years. The discount is what makes the hybrid math work.

Last updated October 11, 2026

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Last updated September 26, 2026

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Driveonomics may earn a commission when you follow a clearly marked affiliate link and complete a qualifying purchase or application. This does not add a charge to the price you pay.

Editorial independence

Compensation does not change the calculator's formulas or the values you enter. When products or services are discussed, the goal is to explain why they may be useful, along with important costs or limitations. A paid relationship does not guarantee a favorable mention.

How links are labeled

Affiliate relationships will be disclosed near the relevant recommendation with language such as “affiliate link,” “we may earn a commission,” or an equivalent plain-language notice. Display advertising will be labeled as advertising.

Do your own comparison

Rates, terms, eligibility and availability can change. Verify the current offer with the provider before applying or buying. The calculator and guides provide general educational estimates, not financial, tax, legal or insurance advice.

What we do

Driveonomics helps drivers understand the full cost of owning a car. The calculator and guides bring together purchase price, financing, depreciation, insurance, fuel and maintenance so different vehicles and deals can be compared on the same terms.

Our approach

We focus on practical estimates, plain-language explanations and the tradeoffs that matter over time. Every car, loan and driver is different, so the numbers here are a starting point, not a substitute for current quotes or professional financial, tax, legal or insurance advice.

How the numbers are calculated, and where every figure comes from, is written down on our methodology page, with every source linked on our sources page.

Email us

Reach Driveonomics at contact@driveonomics.com.