How Much Can You Really Save Buying Used Instead of New?
See exactly how much you can save buying used instead of new with real depreciation numbers for sedans, trucks, and luxury cars. Make a smarter choice.
Mirko4 min read
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The decision to buy used instead of new really comes down to one number: how much car you can get for your money. And the difference isn't small—it's thousands of dollars in your pocket. Depreciation is the single biggest cost of new car ownership, and if you're wondering how much to save buying used car, the answer depends on the segment you're shopping. Let's break it down with real dollar amounts.
The Depreciation Math by Segment
A new car loses the most value in its first three years. For a mainstream sedan like a Toyota Camry, that drop is substantial but predictable. A 2023 Toyota Camry LE with an original MSRP around $28,000 is worth roughly $19,000–20,000 three years later. That's a depreciation of 30–35%—about $8,000–9,000 in real money. That's more than enough to cover a year of insurance or a solid down payment on a house. When you run a used vs new car cost comparison, this gap is where the savings live.
But the numbers vary wildly by vehicle type. Luxury sedans depreciate faster. A BMW 5 Series that started at $60,000 new can lose 45–50% in three years, leaving it worth around $30,000–33,000. That's a $27,000–30,000 hit. The buyer who picks up that 3-year-old BMW gets a near-luxury experience for the price of a new Honda Accord. That's the real power of car depreciation savings.
Sedans and SUVs: Where the Savings Stack Up
For compact sedans and midsize SUVs, depreciation tends to be moderate but still significant. A Honda CR-V EX new at $33,000 might be worth $24,000 after three years—a $9,000 loss. A Toyota RAV4 holds slightly better, maybe 28% depreciation. In both cases, buying used saves money that can go toward features you actually want, like all-wheel drive or a better sound system, without the new-car premium.
The key insight: you're not just skipping the first few years of depreciation. You're also avoiding the dealer fees, destination charges (often $1,000–1,500), and higher sales tax that come with a higher purchase price. On a $35,000 new SUV, taxes and fees can add $3,000–4,000 on top. A used version at $26,000 costs maybe $1,000 less in tax alone.
Trucks: The Exception That Proves the Rule
Trucks like the Ford F-150 hold value better than almost anything else. A three-year-old F-150 XLT that originally sold for $50,000 might still be worth $35,000–37,500—only 25–30% depreciation. That's still $12,500–15,000 lost, but compared to a luxury sedan, it's a much slower bleed. If you need a truck for work, buying used still makes sense, but the savings gap is narrower. Check the exact numbers for your target year and trim—because a well-maintained truck can sometimes hold 75% of its value after five years.
Luxury Cars: Big Depreciation, Bigger Opportunity
This is where the used buyer wins hardest. A 2023 Mercedes-Benz S-Class at $115,000 new can drop to $69,000 in three years—a 40% loss. That's $46,000 in depreciation. The second owner gets a flagship sedan for roughly the cost of a fully loaded Camry. The same story plays out with Audi, Lexus, and even Porsche. If you're willing to accept a few thousand miles and a slightly dated model year, you can afford a much nicer car. The trade-off is higher maintenance costs, but with a pre-purchase check, you can budget for those.
Before you commit, you can check a specific car's risk profile with Squeezed to see exactly what you're getting into. A single report layers in accident history, title problems, and mechanical risk factors in about a minute—so you know if that low price is a steal or a trap.
The Bottom Line on Savings
Whether you're looking at a sedan, SUV, truck, or luxury car, buying used routinely saves you 30–50% of the original MSRP in the first three years alone. Add in lower taxes, no dealer doc fees, and often cheaper insurance, and the total how much to save buying used car question answers itself: thousands of dollars, every time.
When you're ready to look at a specific car, a Squeezed report gives you the risk picture in about a minute. It's the step between finding a car and making an offer.
