Total Cost of Ownership
Calculator

Most new vehicles lose 15–20% of their value the moment they leave the lot, and up to 50% within three years. EVs have shown steeper depreciation curves in 2026 due to rapid battery technology improvements. Trucks and SUVs from Toyota and Honda retain value best, often holding 60–65% after three years.

Over a 5-year period, EVs typically save $4,000–$9,000 in fuel and maintenance costs. However, higher purchase prices and potential battery replacement costs ($8,000–$20,000) can offset savings. With federal tax credits up to $7,500 still available in 2026, EVs are cost-competitive for drivers covering 12,000+ miles annually.

Insurance premiums rose 22% on average between 2023–2026 due to increased repair costs from advanced driver-assistance systems (ADAS), higher medical claim payouts, climate-related weather events, and supply chain issues inflating parts costs. EVs cost 15–25% more to insure than comparable gas vehicles due to specialized repair requirements.

Average new car loan rates in 2026 range from 6.5% to 9.8% for buyers with good credit (700+). Used car loans average 8–13%. A $30,000 loan at 7.5% over 60 months costs roughly $6,000 in interest alone. Credit unions typically offer rates 1–2% lower than dealership financing.

Budget $500–$900/year for a new car under warranty, $1,000–$1,800 for a 3–7 year old vehicle, and $2,000–$3,500+ for older or luxury models. EVs average $400–$700/year in maintenance (no oil changes, fewer brake replacements) versus $800–$1,200 for gas vehicles. Always set aside a $1,500 emergency repair fund.

The Toyota Corolla, Honda Civic, Mazda3, and Hyundai Elantra consistently rank as the lowest total-cost vehicles under $30,000. For EVs, the Chevrolet Equinox EV and Nissan Leaf offer the best value under $35,000. These models combine low depreciation, affordable insurance, and minimal repair costs.

Luxury vehicles (BMW, Mercedes, Audi) cost 40–80% more to maintain than mainstream brands. A BMW 5 Series averages $1,800/year in maintenance vs. $700 for a Toyota Camry. Depreciation is also steeper — a $65,000 luxury sedan may be worth $28,000 in three years. The "sweet spot" is certified pre-owned luxury, 2–3 years old.

Use this formula: (Annual miles ÷ MPG) × price per gallon. At 15,000 miles/year, 30 MPG, and $3.80/gallon, that's $1,900/year. For EVs: (Annual miles ÷ MPGe) × electricity cost per kWh × 33.7. Home charging at $0.14/kWh typically costs $500–$800/year for average drivers — 60–70% less than gas.

The optimal sell window is 3–5 years old with under 60,000 miles — depreciation slows significantly after year three while major repairs haven't yet begun. Spring (March–May) sees the highest used car demand and prices. Avoid selling in December–January when demand is lowest. Private sales net 10–15% more than dealer trade-ins.