What does a used car really cost you?
$15K used car at 80K miles isn't $15K. Add 5-year repairs ($4K), depreciation, insurance, fuel — total ~$32K. Still half the cost of buying new at 5-year horizon.
How the math works
Total cost = purchase + repairs over hold period + insurance + fuel + registration − resale value.
Repair cost projection: for a 5-year-old vehicle with 60-80K miles, expect $400-$1,200/year average in repairs and maintenance, climbing as the vehicle ages. Specific models matter — some brands run 50% above average (Land Rover, BMW), some 30% below (Toyota, Honda). The calculator includes a brand-reliability slider.
The depreciation advantage: a 3-year-old car has already absorbed 40-50% of its lifetime depreciation. You pay roughly 60% of the new price for a vehicle with 80%+ of its useful life remaining. This is why used-car total cost often runs 50-60% of new-car total cost over the same hold period.
The opportunity cost on the price gap: $20K saved on used-vs-new compounds at 7% real to ~$39K over 10 years. Real money, often dwarfs the "more peace of mind" value of a new car.
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Real-world scenarios
- $15K used car real cost over 5 years: ~$32K (still half of new-car equivalent) — full breakdown including the repair categories rookies underestimate.