First Ledger: Purchase Cost and Depreciation
At purchase, the new car clearly costs more. Take a 150,000 yuan bare car: add around 10% purchase tax, insurance and registration and you land near 168,000 yuan all-in. A used car carries no purchase tax — the same class of car at three years old and in normal condition typically sells for around 80,000 yuan, and your all-in cost is barely more than the price plus a transfer fee. The real gap is depreciation. New cars lose value fastest in year one, commonly 15% to 20%: a 150,000 yuan new car is worth roughly 120,000 yuan after a single year, "evaporating" 30,000 yuan. Used cars behave differently — a three-year-old car driven for five more years depreciates more gently, roughly another 40% to 50%, dropping from 80,000 to about 40,000 yuan. Over five years: depreciation on the new car runs 75,000 to 90,000 yuan, while the used car loses about 40,000. Depreciation alone saves you 30,000 to 50,000 yuan with the used option. To see depreciation as a percentage of the purchase price, a [percentage calculator](https://calc20.top/en/percentage) gives the answer instantly.Second Ledger: Insurance, Repairs and Resale Value Over Five Years
Depreciation is only part of the cost. Insurance: a new car's first-year comprehensive policy commonly costs about 6,000 yuan, while the same coverage on a used car, priced off its lower value, runs around 3,000 yuan — a 3,000 yuan gap each year. Repairs and maintenance: the new car is covered by its warranty for the first few years, so major repair bills rarely come out of pocket; the used car demands a repair reserve that grows with age, and a sensible budget is 2,000 to 3,000 yuan per year. Routine maintenance is comparable, and parts for used cars can even be cheaper. Finally, resale value: after five years, the 150,000 yuan new car is worth roughly 75,000 yuan, while the 80,000 yuan used car is worth about 40,000. The new car's resale number is higher in absolute terms, but as a percentage of money spent, the used car loses less. Add it up over five years: the new car costs roughly 90,000 to 100,000 yuan in ownership, the used car about 50,000 to 60,000 — a gap close to half. If you plan to finance the car, factor in monthly payments and total interest with a [loan calculator](https://calc20.top/en/loan).Third Ledger: Who Should Buy What — A Decision Checklist
Once the math is done, the answer depends on who you are. If your budget is tight, the used car is the clear winner — especially for commuting or as a short-term bridge car. If you value peace of mind, dislike surprises and plan to keep the car five years or more, a new car suits you better: during the warranty period, repair worry is essentially zero. If you cannot judge a used car's condition and have no car-savvy friend nearby, the risk of buying a lemon is real — prefer certified pre-owned programs or sources that include a warranty. Also run an income check: car-related spending (payment, insurance, fuel, maintenance) should stay within about 20% of monthly income. A [salary calculator](https://calc20.top/en/salary) can show how your numbers compare. Finally, remember: buying used is not chasing a bargain, it is buying depreciation; buying new is not about status, it is about certainty. Decide which one you actually want, and the answer follows.FAQ
Q1: Does a used car really save that much?
On a five-year total-cost basis, usually 30% to 50%, with the biggest savings coming from depreciation and purchase tax. The catch is condition: a car with major accident history or worn drivetrain can eat the entire saving in repairs, so always get an inspection or buy a certified car with a warranty.
Q2: Why do new cars depreciate so fast in year one?
The moment a new car leaves the lot it becomes "used," and its price absorbs purchase tax, channel margin and the premium for being brand new — hence the 15%-20% first-year drop. That is why the usual advice is either keep a new car five-plus years to spread the depreciation, or buy a 2-3 year old near-new car instead.
Q3: Used cars carry repair risk — how do I control it?
Three ways: pick a 3-5 year old car with reasonable mileage and avoid very old high-mileage units; run a third-party inspection before buying, focusing on engine, transmission and accident signs; and set aside 2,000-3,000 yuan a year as a repair reserve, turning uncertainty into a planned expense.
Q4: Should I finance a new car or buy a used car in cash?
Add up the total first. Financing a new car adds interest; buying used in cash adds no interest but buys an older car. If the loan APR is above 6% and your budget is limited, cash for a used car usually wins. If you plan long-term ownership with stable cash flow, a low-rate loan on a new car is acceptable — just keep the payment inside your comfortable range.