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10 10 Presentation Transcript

  • Hybrid vs. Gas Which is the best option? Team 10 Daniel Cerna Juan Gaspar Duane San Juan Sadia Tarannum
  • Assumptions
    • Analysis Period of 5 Years
    • 5 Year Loan at 6.50% APR
    • No Down Payment
    • Constant Maintenance Cost for 5 Years
    • 15,000 Miles Driven/Yr
    • Miles Driven are 50% City & 50% Highway
    • Standard Driving Conditions
    • Not Reselling Car After 5 Years
  • Scenario
    • For personal transportation is it best to purchase a vehicle that runs on :
      • Hybrid – 2005 Honda Civic Hybrid
      • Gasoline – 2005 Honda Civic
  • Honda Civic Sedan DX (Hybrid)
    • Purchase Price: $21,450
    • Variable Speed Automatic
    • MPG (City): 48
    • MPG (Highway): 47
  • Honda Civic Sedan Ex
    • Purchase Price: $19,310
    • 4 Speed Automatic
    • MPG (City): 31
    • MPG (Highway): 38
  • Annual Cash Flow Analysis Results
    • EUAC of Civic Hybrid = $7,901.80
    • EUAC of Civic EX (Gas) = $7,737.29
    • EUAC of Civic Hybrid is greater than EUAC of Civic EX (Gas)
    • Therefore, Choose Civic EX (Gas)
  • Sensitivity: Avg. Cost of Fuel $3.98
  • Sensitivity: Miles Driven/Yr 22,541 Miles
  • Sensitivity: Civic Hybrid Maintenance Cost/Yr $365.11
  • Sensitivity Results
    • Lowest EUAC – Honda Civic Ex
    • Hybrid fuel savings does not offset higher purchase price
    • Cases where Civic Hybrid costs less:
      • Avg. Cost of Fuel Over $3.98
      • Miles Driven/Yr Over 22,541 Miles
      • Civic Hybrid Maintenance Cost/Yr Below $365.11
  • Resources
    • Hybrid Vehicle Cost Calculator Tool: http://fcvt.nrel.gov/cleancities/hev/calculator/single.php
    • Calculates Present Value of Annuity with Interpretation:
      • Investopedia.com
    • Mortgage Payment Calculator:
      • Connel.net
    • Loan Payment Calculator:
      • Bankrate.com