Remember about three months ago when you bought that shiny new car? It looked incredible, smelled amazing, and felt like the perfect upgrade. Fast-forward a few months later, and the new-car smell is fading, but the car payment and the insurance bill? Oh, those are still very real and they are not going away anytime soon.

Let’s talk about what that new car is actually costing you and what smarter move you could’ve made instead. And if you’re on the fence considering buying a new car, there’s still hope for you. Because if you haven’t bought the car yet, this article might help save you a whole lot of money and regret.

You fall in love with a $50,000 new car… but hate the idea of settling for an $18,000 used one. Because let’s be honest, a new car feels like success. It just feels so much better.

But here’s the crazy catch: looking successful might be costing you actual, real financial success.

Let’s compare the numbers of buying used versus new so you can get a better understanding of what’s really going on :

• New car price: $50,000
• Used car price: $18,000
• New car loan: 72 months @ 6% → about $800/month
• Used car loan: 48 months @ 6% → about $400/month
• Total paid on new car with interest: ~$57,500
• Estimated maintenance: Slightly higher on the used car

After six years, that $50,000 car is worth about $20,000. Most new cars lose $5k–$10k the moment you drive them off the lot.

The used car? Still worth around $10,000.

Total 6-year cost breakdown:

• $50k car: ~$65,000 true cost
• $18k car: ~$24,000–$25,000 true cost

Total savings: around $40,000.

Imagine saving $40,000 — all because you chose a used car instead of the new-car ego boost.

• Invest it in the stock market: At 8% over 10 years → around $186,000
• Put a down payment on a house: Primary home or a rental
• Start a business: $40k gives you a real nice runway to get things started
• Contribute to retirement: Even partial contributions make a difference

As you can see, this one decision—choosing a cheaper car can radically change your financial trajectory.

Hey, let’s be real. You still might want that nice new car. So here’s the smarter way to go about  buying it:

1. Start with the $18,000 car

Drive it for six years (or even twelve). Let this car buy you time.

2. Simulate the expensive car payment

Take the difference between the $800 new-car payment and the $400 used-car payment — and put that extra $400 into a savings account every month.

You’ll feel the “pain” of a car payment, but this time the money is growing instead of disappearing.

3. Once the money is saved — don’t buy yet

Rent the car you want for a few weeks first. Get familiar with it. Give it a thorough testing, and then ask yourself:

• Do I really want this car?
• Is it worth spending my savings?
• Does this purchase move me towards my goals, or does it move me backwards?

You might just discover that the excitement wears off quickly, and the long-term financial hit isn’t worth it.

Thousands of people lose cars every day because they simply can’t afford them. Refuse to become one of them.

Do the math. Do your budget. Look at the big picture. And don’t let a car payment quietly drain your future wealth.

Have you changed your mind after seeing the numbers? Thinking differently about the car you want? Drop a comment. We’d love to hear from you.