Buying New Vs Used Car - The Real Math

Is buying used always the smarter money move? The sticker price is only the starting line. In this video, we follow two buyers with the same income, savings, and credit profile, then run the numbers behind depreciation, APR, loan length, trade-in timing, negative equity, repair risk, and opportunity cost. You will see why the cheaper car can sometimes carry more interest, how a long loan can delay a clean exit, and when unusually cheap new-car financing can narrow the gap. CHAPTERS 00:00 The three clocks behind every car purchase 02:30 The loan clock: APR changes the answer 05:11 The exit clock: negative equity 07:52 The ten-year break-even test 10:01 The four numbers to check before buying SOURCES Experian — Average Car Loan Interest Rates by Credit Score Consumer Financial Protection Bureau — Negative Equity in Auto Lending Consumer Financial Protection Bureau — Auto Loan Terms Kelley Blue Book — New-Car Depreciation The examples in this video are educational illustrations, not personalized financial advice. Actual prices, rates, maintenance costs, market returns, and trade-in values vary. The 7% return used in one scenario is hypothetical and is not a promise of future performance. Money Math Lab runs the numbers behind ordinary money decisions. #personalfinance #carbuying #moneymath