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CAR FINANCE GUIDE

New vs Used Car Finance

Compare how vehicle price, age, depreciation, lender criteria and running costs can affect financing a new or used car.

Scott IriksFounder, BaseRate
Updated Aug 20267 min read
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General information only: This guide does not consider your objectives, financial situation or needs and is not financial advice. Credit eligibility, rates and terms depend on the lender's assessment.

Interactive comparison

Compare the real five-year cost

Change the vehicle, purchase costs and ownership scenario. No credit check is performed.

Prices should reflect the vehicles you are actually considering. Government charges and live values are estimates.

The cheaper vehicle is not automatically the cheaper decision

Used cars often have a lower purchase price, while new vehicles may offer warranty coverage, current safety features and access to a wider range of lender policies. The better financial fit depends on the complete cost and how long you plan to keep the car.

Older vehicles can attract different loan terms or secured-lending criteria. Maintenance and repair risk also becomes more important as age and kilometres increase.

Compare total ownership costs

Model the deposit, financed amount, term, interest, fees and expected running costs. New vehicles can depreciate quickly; used vehicles can require earlier maintenance. Neither outcome is universal.

  • Vehicle price and on-road costs
  • Insurance and registration
  • Fuel or charging
  • Servicing, tyres and repairs
  • Expected resale value

Match the term to the useful life

A long loan over an older vehicle can leave repayments continuing after major repairs or replacement becomes likely. Consider whether the proposed term is reasonable for the vehicle’s age, condition and intended use.

Sources and further reading

Primary sources checked when this guide was reviewed:

Read BaseRate's editorial policy and calculator methodology.

Repayment estimate

Estimate car-loan repayments

Adjust the vehicle price, deposit, term and optional balloon. The result is an illustration, not an approval or finance offer.

$
$
$

Weekly Repayment

$198

Loan Amount

$42,290

Total Interest

$9,147

Example Rate

7.99% p.a.

Illustrative only. Repayment estimates use a 7.99% p.a. example interest rate and exclude lender-specific fees unless stated. This is not an advertised rate, credit approval or offer. Your actual interest rate, comparison rate, fees and repayments depend on financier assessment and the final loan details.

WRITTEN & REVIEWED BY

Scott Iriks

Scott Iriks is the Founder of BaseRate with more than two decades of experience in Australian financial services, including credit operations and executive leadership.

  • Founder, BaseRate
  • Credit Representative 580651 · ACL 383122
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