ASK THE STEWARD · A PRACTICAL MONEY TOOL

Count the Whole Cost.

What else could your money make possible?

A vehicle meets a real need. Compare three suitable ways to meet it, then look at the resources each choice leaves for your household. Waiting, repairing or choosing a less expensive option can be a worthwhile result.

An invented example is loaded.

These starting figures are teaching examples, not current prices, loan offers or resale forecasts. Compare vehicles that meet the same real transport needs.

01 · Start from today

What do you already own?

Compare over this many yearsCurrent vehicle’s sale / trade value ($)Its value today, even if you keep it. Use a realistic offer.Current loan payoff balance ($)Use the amount needed to settle the existing loan.

Both replacement options assume you sell or trade this vehicle and settle its existing loan. Its net equity goes into the replacement; a shortfall increases the estimated new loan. Actual financing terms need confirmation.

02 · Compare the whole choice

Three ways to meet the same need.

Keep the current vehicle

Insurance per month ($)Fuel / charging per month ($)Maintenance and repairs per year ($)Include tires and an allowance for uncertain repairs.Recurring registration / taxes per year ($)Do not repeat sales taxes already in the purchase price.Expected resale after 5 years ($)An assumption, not a promise. Try a lower value too.

Buy a suitable used vehicle

Total out-the-door purchase price ($)Include sales tax, dealer fees and any add-ons.Additional cash down ($)New cash, in addition to the current vehicle’s equity.

New loan APR (%)Loan term (months)

Buy a new vehicle

Total out-the-door purchase price ($)Include sales tax, dealer fees and any add-ons.Additional cash down ($)New cash, in addition to the current vehicle’s equity.

New loan APR (%)Loan term (months)

03 · Remember the other goal

What else could that money make possible?

Option you are consideringAnother goal that mattersAmount for that goal ($)

No account, bank connection or contact details. These figures are calculated in this tab; they are not submitted or saved by this tool. Clearing the figures or reloading starts over.

How the calculation works

Ownership cost = additional net cash paid now + loan payments during the comparison + running costs + your current vehicle’s net equity today − the vehicle’s net equity at the end. Ending equity is the entered resale value minus any loan balance still owed. This accounts for depreciation without adding it again on top of loan principal.

Loan estimates assume fixed APR, equal monthly payments, monthly interest at APR ÷ 12, and the first payment one month after financing. Existing-loan estimates reconstruct payments from the entered balance, APR and months remaining. Actual contracts, daily interest, early settlement fees, irregular payments and financed charges can differ. A trade shortfall is included in replacement borrowing; this is not a financing offer.

Fuel, insurance, annual fees and repair allowances stay constant. Loans stop when repaid. Both replacements use the same entered current-vehicle value; edit the total purchase price if actual offers differ. This comparison covers ownership, not leasing.

Read the reasoning. Check the assumptions.

What a New Car Really Costs Your Household explains cash flow, depreciation, net worth and opportunity cost. Compare options that meet your needs for safety, accessibility and reliable transport.

Sources: CFPB auto-loan guide and FTC guidance on financing or leasing a car. Reviewed October 12, 2026. This is an educational estimate; no loan offer or investment return is promised.

Send a question or correction to the Steward. Do not include account numbers or private financial documents.