New Used 
  
  Average cost per year
 $2,524 $2,350 
  
  Monthly payment
 $390 $302 
  
 First year's depreciation
 $3,750 $1,680 
  
  Total depreciation during ownership
 $7,508 $5,588 
  
  Total interest paid
 $1,026 $871  
   
  The value of the new vehicle at the end of 3 years is $8,712 and was computed as follows: 
  
  Price new
 $15,000 
  
  Less depreciation for 3 years
 $6,288 
  
  Price at 3 years of age
 $8,712    
   
     
  The graph shows the difference in average yearly cost of ownership for new and used vehicles. In the first few years of ownership, new vehicles incur more in financing, depreciation and other costs than used vehicles. Over time, the difference in average yearly cost of ownership declines.