EGR 403H 01CHANDLER HWE

MICHAEL RELICH

Honda Fit vs Toyota Yaris

Outline

Honda FitToyota YarisAssumptions5 Year Cost of OwnershipGasoline CostsInsurance RatesMiles Driven Per YearMaintenance CostsLength of OwnershipMaintenance TypeConclusionResources

Honda Fit

2011 ModelMSRP of $1665029/35 MPG City/HighwayInsurance Cost per Year: $1236Salvage Value After 5 years:

$5,336Dealer Maintenance

Toyota Yaris

2011 ModelMSRP of $1677028/35 MPG City/HighwayInsurance Cost per Year: $1304Salvage Value After 5 years: $5,661Dealer Maintenance

Assumptions

15,000 Miles Driven Per Year0% down, 4.59% APR$3.75 per Gallon Gasoline Price$0.10 Raise in Gasoline Price per YearSalvage Value Based Off Kelly Blue Book

Values

Honda Fit

Year Financing Insurance State Fees Fuel Maintenance Repairs Total PV of Total

1 $3,733 $1,236 $110 $1,786 $98 $0 $6,963 $6,760

2 $3,733 $1,236 $73 $1,833 $137 $0 $7,012 $6,610

3 $3,733 $1,236 $73 $1,881 $288 $78 $7,289 $6,670

4 $3,733 $1,236 $68 $1,929 $570 $168 $7,704 $6,845

5 $3,733 $1,236 $68 $1,976 $288 $341 $7,642 $6,592

Totals $33,477

Salvage Value -$5,661.00 -$4,883

Final Cost of Ownership

$28,594

Toyota Yaris

Year Financing Insurance State Fees Fuel Maintenance Repairs Total PV of Total

1 $3,759.96 $1,304 $104 $1,758 $0 $0 $6,926 $6,724

2 $3,759.96 $1,304 $68 $1,805 $24 $0 $6,961 $6,561

3 $3,759.96 $1,304 $68 $1,852 $238 $78 $7,300 $6,680

4 $3,759.96 $1,304 $63 $1,898 $624 $168 $7,817 $6,946

5 $3,759.96 $1,304 $63 $1,945 $238 $341 $7,651 $6,600

Totals $33,511

Salvage Value -$5,366.40 -$4,629

Final Cost of Ownership

$28,882

$2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.5024000

25000

26000

27000

28000

29000

30000

31000

32000

Gasoline Prices

YarisFit

Gasoline Price at Purchase

5 Y

ear

Cost

of

Ow

ners

hip

-20% -10% 0% 10% 20% 30% 40% 50%25000

26000

27000

28000

29000

30000

31000

32000

Insurance Rate Increase

YarisFit

Percentage Increase

5 Y

ear

Cost

of

Ow

ners

hip

0 5000 10000 15000 20000 250000

5000

10000

15000

20000

25000

30000

35000

Miles Driven Per Year

YarisFit

Miles Driven

5 Y

ear

Cost

of

Ow

ners

hip

-40%

-20% 0% 20

%40

%60

%80

%10

0%12

0%27000

28000

29000

30000

Maintenance Cost Increase

YarisFit

Percentage Increase

4 Y

ear

Cost

of

Ow

ners

hip

LENGTH OF OWNERSHIP

Cost of Ownership

Time Period Yaris Fit

3 Years $19,082.15 $18,158.16

5 Years $28,881.84 $28,593.92

MAINTENANCE TYPE

5 Year Cost of Ownership

Maintenance Type Yaris Fit

Dealer 5 Years $28,881.84 $28,593.92

Dealer 3 Years/Third Party2 Years $28,549.62 $28,264.74

Conclusions

5 Year Cost of Ownership Honda Fit is Cheaper by about $290

3 Year Cost of Ownership Honda Fit is Cheaper by about $900

Sensitivity Analysis Honda Fit Increase in Cost Over Time

3rd Party Maintenance $5 Difference

Resources

Honda Official Website and Local DealerToyota Official Website and Local DealerFirestone Complete AutocareKelly Blue BookBankrate.comInsure.comCarinsurance.comNewcar.com