A 2025 F-150 costs twice as much as a used one — but why is a new RAV4 only 15% more than a used model?

Used cars often look cheaper at first glance, but the choice isn’t always simple. While they can save money, reliability, recalls, and personal preferences, like wanting the latest features or that ‘new car’ feeling, can tip the scales. In the end, it’s not just about numbers; it’s about what feels right.

Even when price is the focus, the difference between new and used car models can vary — dramatic for some, surprisingly small for others. 

For example, the Ford F-150 shows a big difference: the first-year ownership costs for a 2025 model are around $29,111, while owning a 2018 model will run you just shy of $13,500 – a cost increase of 116%. 

In contrast, the Toyota RAV4 sees only a modest rise of 15%: $12,636 for a 2025 model versus $10,966 for the 2018 version.

Lurking behind these numbers are the cost of insurance, maintenance, and other expenses beyond the sticker price, otherwise known as the Total Cost of Ownership (TCO).

Related: Can a vehicle’s safety features get you cheaper car insurance?

Breaking down the costs: Ford F-150 vs. Toyota RAV4

Canada’s two most popular vehicles—the Ford F-Series, led by the F-150, and the Toyota RAV4—couldn’t be more different. One is built for heavy hauling, the other for everyday practicality. Yet both dominate Canada’s sales charts year after year, according to a variety of sources, making them a good case study for ownership costs.

Ford F-150: Used will run you longer for less

The difference in ownership costs for a used and new model of this beloved pick-up truck is striking. Owning a 2025 Ford F-150 for a year costs $29,111 — more than double the $13,498 for a 2018 model.

Insurance for the newer model runs about $3,684 annually, compared to $2,864 for the older truck. Interest payments—the amount you pay the lender for financing the vehicle—are also higher: roughly $4,730 versus $3,529. Fuel, maintenance, and administrative fees add up too.

Mark Whinton, automotive expert and owner of the CarQuestions Youtube channel, says this significant difference in TCO isn’t surprising. Vehicle prices have climbed roughly 30% since 2019, he notes, and Ford’s switch from steel to aluminum added significant manufacturing costs.

But the cost to consumers goes beyond the financial if they opt for the newer model. Whinton pointed out Ford’s troubling recall record: Between the 2023, 2024 and 2025 models F-150 have racked up 29 safety-related recalls despite very little change between these models.

“[Lack of] safety means death,” he says. “They’re serious issues: steering doesn’t work, brakes fail, airbags malfunction, cameras stop working.”

While the older 2018 model has its own problems, with 15 recalls to date, it still fares better than the newer version. 

"Recalls typically accumulate as a car ages. That’s very typical,” Whinton explains. “A brand-new vehicle usually has none. After three or four years, you might see a couple, and by 10 years, maybe three or four. But this 2025 Ford F-150? It already has 10 recalls, and it hasn’t even been on the road for a year.”

Read more: Higher car expenses leading more Canadians to make changes to their driving

Toyota RAV4: Too close to call

The Toyota RAV4 shows a far smaller difference in total cost of ownership between new and used models. A 2025 RAV4 costs $12,636 annually, while a 2018 model costs $10,966—a difference of 15%.

Just like with the Ford F-150 insurance and financing costs make up a chunk of the disparity in ownership costs between RAV4 models. Insurance for the newer RAV4 is slightly higher, and interest payments are similar: about $2,701 for the 2025 model versus $2,731 for the 2018. 

Fuel and administrative fees for each model are similar, but maintenance costs can vary wildly: the 2025 model averages $429 per year; significantly lower than the $1,141 for the older version. This is an advantage that could make it more appealing to buyers.

When it comes to safety, Whinton says Toyota’s reputation for reliability is well-earned:

"I’m just stating the facts,” he says. “Toyota is hands down that much more quality."

He adds that choosing a used Toyota often means fewer trips to the service department and significant savings over time. The RAV4 also has a much better recall record compared to the Ford F-150 in general. 

“The old Toyota from 2018...has got a total of three [recalls],” Mark noted. In contrast, the 2025 RAV4 has had two recalls so far. 

Learn more: Thinking of upgrading to a 2024 Dodge Ram? Prepare to pay 408% more for comprehensive insurance

Is a used car truly the better option?

Choosing between a new and a used car often feels like a trade-off between savings and reliability. Depending on the model, a used vehicle can offer significant savings, while a new car provides peace of mind with a full warranty and the latest features.

So, is a used car always the smarter choice? According to Whinton and Mayer, the answer isn’t always straightforward.

Used cars often win on total cost of ownership. The Ford F-150 is a clear example: a 2018 model costs less than half as much to own for a year compared to the 2025 version. The reason is depreciation—new vehicles lose a large portion of their value in the first year.

“If someone else takes that depreciation hit for you, you can save quite a bit of money,” Mayer explains. Still, he advises comparing prices carefully, especially for low-mileage, newer used vehicles.

But as we see with the Toyota RAV4, maintenance can eat up more of your budget. While the 2018 RAV4 is cheaper overall, its annual maintenance costs are more than double those of the 2025 model. 

Whinton notes that with a dependable used car, “you’d save a ton of money,” but Mayer cautions that if you go “more than five or eight years older, you might have to budget for higher maintenance costs.”

However, both experts acknowledge that for many, car buying is an emotional decision. 

Mayer points out that some buyers “really want the new shiny car” and are accustomed to leasing every few years. “Sometimes it’s about having the latest and greatest, even if they know it’ll cost more.”

But whether you’re led by your head or your heart, it’s worth it to do your homework. 

Recall history is one of the clearest indicators of how much you’ll save in the long run. Whinton’s advice? “Look up the history of its sister from the year before and see what it was like.” 

And don’t stop there—dig deeper into the numbers. “Look at all the expenses—insurance, maintenance, everything—and make your decision accordingly,” says Mayer. 

In the end, the smartest choice isn’t just about new or used—it’s about doing the math, checking the facts, and finding the ride that fits your life (and wallet) best.

Learn more: Can you negotiate the price of a used car in today's market?