Cost example updated October 20, 2026
Get the free Car Buyer’s Cheat Sheet, 7 things to know before you sign anything. The numbers that matter, in plain English, on one page.
Join the Driveonomics email list. Occasional useful updates, no spam, unsubscribe anytime.
The example: a five-year-old SUV at $22,000
Take a typical used buy: a five-year-old midsize SUV, 60,000 miles, priced at $22,000, the kind of vehicle that fills every used lot in America, bought and driven for five more years, to age ten and 120,000 miles. The new-car comparison point is our RAV4 example: a $32,710 new SUV costing $40,788 over five years.
Used financing differs from new in ways that matter: rates run higher (this example uses 10% APR, in line with national used-car averages), there is no factory warranty doing quiet work in the background, and the maintenance bucket stops being oil changes and starts being ownership. With 10% down ($2,200), this example finances $22,240 at $473 a month, with $6,112 of interest.
The bucket that flips: maintenance and repairs
On a new car, five years of upkeep in our examples runs $5,000, scheduled service, a tire set, brakes. On a five-to-ten-year-old vehicle, budget $1,900 a year, or $9,500: everything on the new-car list, plus a battery, suspension and cooling-system wear, and an allowance for one real repair, an alternator, a water pump, an A/C compressor, somewhere in the five years. That single line is $4,500 more than the new car's, and it is the most honest argument in this entire comparison, in both directions: cars that need none of it make used buying look brilliant, and one transmission-class failure erases the savings outright.
The rest of the buckets
Depreciation is where used wins its reputation: the steepest drop happened on the first owner's watch. From $22,000 to about $9,000 at ten years old is $13,000, more than the new RAV4's $8,308, because a $22,000 vehicle still has $13,000 left to lose. Insurance at $150 a month ($9,000 over five years) reflects full coverage, which a financed car requires. Fuel at 27 mpg, a few points below the same vehicle new, as engines and tires age, runs $9,229.
The full five-year example
Every figure below comes from the site's own calculator math. The stated inputs are: five-year-old midsize SUV, $22,000 price, 10% down ($2,200), 10% APR, 60 months, 7% sales tax, $900 in title and dealer fees, 12,000 miles per year, 27 mpg, $4.153 per gallon (the EIA national average for the week ending November 2, 2026), $150 per month insurance, $1,900 per year maintenance and repairs, $9,000 resale value after five years. The example uses 10% down, see how much to put down on a car.
- Depreciation: $13,000 ($22,000 minus $9,000 resale)
- Insurance: $9,000 ($150 x 60 months)
- Fuel: $9,229 (12,000 / 27 x $4.153 x 5 years)
- Maintenance and repairs: $9,500 ($1,900 x 5 years)
- Tax, fees and interest: $8,552 ($1,540 sales tax, $900 fees, $6,112 loan interest)
That totals roughly $49,281, or about $821 a month, about $8,311 more over five years than the brand-new RAV4 example, despite a sticker $10,710 lower. Read that again: financed at used-car rates with an honest repair budget, the used SUV costs more in total than the new one. Its advantage survives only in the payment ($473 vs. $662), which is exactly why the payment is the wrong number to shop by.
Formula
The stated inputs are: five-year-old midsize SUV, $22,000 price, 10% down ($2,200), 10% APR, 60 months, 7% sales tax, $900 in title and dealer fees, 12,000 miles per year, 27 mpg, $4.153 per gallon (the EIA national average for the week ending November 2, 2026), $150 per month insurance, $1,900 per year maintenance and repairs, $9,000 resale value after five years. Used financing differs from new in ways that matter: rates run higher, this example uses 10% APR, in line with national used-car averages, there is no factory warranty doing quiet work in the background, and the maintenance bucket stops being oil changes and starts being ownership. With 10% down ($2,200), this example finances $22,240 at $473 a month, with $6,112 of interest.
The five buckets: depreciation $13,000 ($22,000 minus $9,000 resale); insurance $9,000 ($150 times 60 months); fuel $9,229 (12,000 divided by 27 times $4.153 times 5 years); maintenance and repairs $9,500 ($1,900 times 5 years); tax, fees and interest $8,552 ($1,540 sales tax, $900 fees, $6,112 loan interest). That totals roughly $49,281, or about $821 a month, about $8,311 more over five years than the brand-new RAV4 example at $40,788, despite a sticker $10,710 lower. Depreciation is where used wins its reputation, but not here: from $22,000 to about $9,000 at ten years old is $13,000, more than the new RAV4 $8,308, because a $22,000 vehicle still has $13,000 left to lose.
The bucket that flips is maintenance and repairs. On a new car, five years of upkeep in the site examples runs $5,000, scheduled service, a tire set, brakes. On a five-to-ten-year-old vehicle, budget $1,900 a year, or $9,500: everything on the new-car list, plus a battery, suspension and cooling-system wear, and an allowance for one real repair, an alternator, a water pump, an A/C compressor, somewhere in the five years. That single line is $4,500 more than the new car line. Two levers change the story. First, paying cash: remove the loan and the interest bucket disappears, the same example totals about $42,987, and the used advantage becomes real money. Second, the individual car: a one-owner vehicle with service records and a clean pre-purchase inspection is a different bet from an auction special, and the $1,900-a-year line is an average across both.
Where the used advantage is real
Two levers change the story. First, paying cash: remove the loan and the interest bucket disappears, the same example totals about $42,987, and the used advantage becomes real money. Second, the individual car: a one-owner vehicle with service records and a clean pre-purchase inspection is a different bet from an auction special, and the $1,900-a-year line is an average across both. Used buying rewards homework more than any other kind of car shopping, which is also the honest summary of the new vs. used guide. Paying cash or financing changes that story, see whether to pay cash for a car or finance it.
Already own a car you're weighing against a replacement? The keep it 10 years guide runs that exact comparison, and the used EV guide covers the fastest-depreciating corner of the used market. For a sedan at a lower price point, see what a $20,000 used car really costs. Shopping a used midsize sedan specifically? See what a Chevrolet Malibu really costs over 5 years.
See which used models actually sell most, and what each one costs to keep, on best-selling used cars. Run any used car you are considering through the calculator with three changes from the new-car defaults: the real used APR, a maintenance figure with a repair allowance in it, and a resale value at the age you will sell. What survives that math is a genuinely good buy.
Calculation transparency
Scope. One worked example, a five-year-old midsize SUV at $22,000, 60,000 miles, bought and driven for five more years to age ten and 120,000 miles, with the same math the site applies to new cars, including the maintenance bucket that decides the comparison.
Rules and time period. Five-year-old midsize SUV, $22,000 price, 10% down ($2,200), 10% APR, 60 months, 7% sales tax, $900 in title and dealer fees, 12,000 miles per year, 27 mpg, gas at $4.153 per gallon, the EIA national average for the week ending November 2, 2026, $150 per month insurance, $1,900 per year maintenance and repairs, $9,000 resale value after five years.
Scope and limitations. Educational estimate only. The $1,900-a-year maintenance line is an average across good cars and bad ones: cars that need none of it make used buying look brilliant, and one transmission-class failure erases the savings outright. Budget the repair line before you fall for the price. Prices vary by car, shop, and city. Get a written quote for your own car before you decide.
Source links checked November 6, 2026. Figures: Purchase price, gas mileage, insurance, upkeep, and value loss from the site own calculator math; gas at $4.153 a gallon, the EIA national average for the week ending November 2, 2026; new-car comparison point is the Driveonomics RAV4 example, a $32,710 new SUV costing $40,788 over five years.
Primary sources: EIA, U.S. weekly retail gasoline prices; Toyota RAV4 true cost; What a $20,000 used car really costs; Should I pay cash for a car or finance it. How the numbers are calculated is written down on the methodology page, and every source is listed on the sources page.
Definitions
Depreciation. The value a car loses over time. On this page, from $22,000 to about $9,000 at ten years old, which is $13,000.
Upkeep. Maintenance and repairs together. On this page, $1,900 a year, or $9,500 over five years, against $5,000 for a new car.
APR. Annual percentage rate, the yearly interest rate on the loan. This example uses 10%, in line with national used-car averages. For context, Experian reported average rates of 6.35% on new cars and 11.19% on used cars in the second quarter of 2026.
Sales tax. A tax on the purchase price, charged by your state. On this page, 7%, or $1,540 on the $22,000 example.
Resale value. What the car is worth when you sell it. On this page, $9,000 after five years, at ten years old and 120,000 miles.
Pre-purchase inspection. A clean inspection by a mechanic before you buy. A one-owner vehicle with service records and a clean pre-purchase inspection is a different bet from an auction special.
Questions people actually ask
How much does a used car really cost over 5 years?
In the example on this page, roughly $49,281 over five years, or about $821 a month: a five-year-old midsize SUV at $22,000, driven 12,000 miles a year for five more years, to age ten and 120,000 miles.
Why does the used SUV cost more than a new RAV4?
Financed at used-car rates with an honest repair budget, the used SUV costs about $8,311 more over five years than the brand-new RAV4 example at $40,788, despite a sticker $10,710 lower. Its advantage survives only in the payment, $473 against $662, which is exactly why the payment is the wrong number to shop by.
What is the biggest cost difference on a used car?
Maintenance and repairs. On a new car, five years of upkeep in the site examples runs $5,000. On a five-to-ten-year-old vehicle, budget $1,900 a year, or $9,500, which is $4,500 more than the new car line, and the most honest argument in this entire comparison, in both directions.
Does paying cash change the used car math?
Yes. Remove the loan and the interest bucket disappears, and the same example totals about $42,987, so the used advantage becomes real money.
What should I check before buying a used car?
The individual car: a one-owner vehicle with service records and a clean pre-purchase inspection is a different bet from an auction special. Run any used car you are considering through the calculator with three changes from the new-car defaults: the real used APR, a maintenance figure with a repair allowance in it, and a resale value at the age you will sell.
Related: Certified or not? See whether certified pre-owned is worth it.
Related: Mileage is the biggest value lever on a used car. See how mileage affects car value.
Related: Looking at a high-mileage car? See whether it is worth buying.