Hybrid vs. GasHybrid vs. GasWhich is the best option?Which is the best option?

Team 10Team 10

Daniel Cerna Daniel Cerna

Juan Gaspar Juan Gaspar

Duane San Juan Duane San Juan

Sadia Tarannum Sadia Tarannum

AssumptionsAssumptions

Analysis Period of 5 YearsAnalysis Period of 5 Years 5 Year Loan at 6.50% APR5 Year Loan at 6.50% APR No Down PaymentNo Down Payment Constant Maintenance Cost for 5 YearsConstant Maintenance Cost for 5 Years 15,000 Miles Driven/Yr15,000 Miles Driven/Yr Miles Driven are 50% City & 50% HighwayMiles Driven are 50% City & 50% Highway Standard Driving ConditionsStandard Driving Conditions Not Reselling Car After 5 YearsNot Reselling Car After 5 Years

ScenarioScenario

For personal transportation is it best For personal transportation is it best to purchase a vehicle that runs on :to purchase a vehicle that runs on : Hybrid – 2005 Honda Civic HybridHybrid – 2005 Honda Civic Hybrid

Gasoline – 2005 Honda CivicGasoline – 2005 Honda Civic

Honda Civic Sedan DX (Hybrid)Honda Civic Sedan DX (Hybrid)

Purchase Price: $21,450Purchase Price: $21,450

Variable Speed Variable Speed AutomaticAutomatic

MPG (City): 48MPG (City): 48

MPG (Highway): 47MPG (Highway): 47

Honda Civic Sedan Ex Honda Civic Sedan Ex

Purchase Price: Purchase Price: $19,310$19,310

4 Speed Automatic4 Speed Automatic

MPG (City): 31MPG (City): 31

MPG (Highway): 38MPG (Highway): 38

Annual Cash Flow Analysis ResultsAnnual Cash Flow Analysis Results

EUAC of Civic Hybrid = $7,901.80EUAC of Civic Hybrid = $7,901.80

EUAC of Civic EX (Gas) = $7,737.29EUAC of Civic EX (Gas) = $7,737.29

EUAC of Civic Hybrid is greater than EUAC of Civic Hybrid is greater than EUAC of Civic EX (Gas)EUAC of Civic EX (Gas)

Therefore, Choose Civic EX (Gas)Therefore, Choose Civic EX (Gas)

Sensitivity: Avg. Cost of FuelSensitivity: Avg. Cost of Fuel

$3.98

Sensitivity: Miles Driven/YrSensitivity: Miles Driven/Yr

22,541 Miles

Sensitivity: Civic Hybrid Maintenance Cost/YrSensitivity: Civic Hybrid Maintenance Cost/Yr

$365.11

Sensitivity ResultsSensitivity Results

Lowest EUAC – Honda Civic ExLowest EUAC – Honda Civic Ex

Hybrid fuel savings does not offset higher Hybrid fuel savings does not offset higher purchase pricepurchase price

Cases where Civic Hybrid costs less:Cases where Civic Hybrid costs less: Avg. Cost of Fuel Over $3.98Avg. Cost of Fuel Over $3.98 Miles Driven/Yr Over 22,541 MilesMiles Driven/Yr Over 22,541 Miles Civic Hybrid Maintenance Cost/Yr Below Civic Hybrid Maintenance Cost/Yr Below

$365.11$365.11

ResourcesResources

Hybrid Vehicle Cost Calculator Tool: Hybrid Vehicle Cost Calculator Tool: http://fcvt.nrel.gov/cleancities/hev/calculator/single.phphttp://fcvt.nrel.gov/cleancities/hev/calculator/single.php

Calculates Present Value of Annuity with Calculates Present Value of Annuity with Interpretation:Interpretation: Investopedia.com Investopedia.com

Mortgage Payment Calculator:Mortgage Payment Calculator: Connel.netConnel.net

Loan Payment Calculator:Loan Payment Calculator: Bankrate.comBankrate.com