1. Toyota vs. Ford Team 2 Anthony DeBoer Anthony DeBoer Alex Owen Alex Owen Todd Chung Todd Chung Francis Roldan Francis Roldan

2. Presentation Outline Scenario Scenario Effects of APR and Down Payment on EUAC Effects of APR and Down Payment on EUAC Warranty and Resale Value Warranty and Resale Value Fuel Economy and Insurance Fuel Economy and Insurance Maintenance Maintenance Conclusion Conclusion

3. Scenario 23 year old starting engineer at Chevron Corp. with $60,000 annual salary drives 15,000 miles per year for 6 years 23 year old starting engineer at Chevron Corp. with $60,000 annual salary drives 15,000 miles per year for 6 years Lives in Pomona, CA Lives in Pomona, CA 80% Highway, 20% City 80% Highway, 20% City He is in good health, has a good driving record and credit score He is in good health, has a good driving record and credit score MSRP: Toyota Camry $21,940, Ford Fusion $18,155 MSRP: Toyota Camry $21,940, Ford Fusion $18,155

4. Effect of APR on EUAC

5. Effect of Down Payment on EUAC 8% APR for 48 month loan

6. Warranty FORD FUSION Basic: 3 yr. / 36,000 mi. Basic: 3 yr. / 36,000 mi. Drive train: 5 yr. / 60,000 mi. Drive train: 5 yr. / 60,000 mi. Roadside: 5 yr. / 60,000 mi. Roadside: 5 yr. / 60,000 mi. Rust: 5 yr. / Unlimited mi. Rust: 5 yr. / Unlimited mi. 5 Years / 60,000 Miles Deductible $0 $100 $0 $100 $1,132 $832 $1,132 $832 TOYOTA CAMRY Basic: 3 yr. / 36,000 mi. Drive train: 5 yr. / 60,000 mi. Rust: 5 yr. / Unlimited mi. Deductible $0 $100 $1,029 $729

7. Resale value Camry in 2000 Camry in 2006 Fusion in 2000 Fusion in 2006 Fusion in 2006 (Note : Using the Taurus for the Fusion) $16,816$7,092$13,981$4,362 Resale value = 7092 / 16816 = 42.1%.421 x $21940 = $9240 Resale value= 4362 / 13981 = 31.1%.311 x $18155 = $5646

8. Fuel Economy Ford Fusion 23mpg city/31mpg highway 23mpg city/31mpg highway 518 gal per yr 518 gal per yr 1yr cost $1811.11 1yr cost $1811.11 6yr cost $10868.16 6yr cost $10868.16 Toyota Camry 24mpg city/34mpg highway 478 gal per yr 1 yr cost $1235.79 6yr cost $10036.76 Estimates: 15,000 miles driven per year 80% highway, 20% city miles Avg. cost per gal $3.50 6 year time period

9. Insurance 23 Year Old Male 15,000 miles per year Single Living in Pomona Good driving record

10. Annual Maintenance 10% Difference Annually, Oil Changes, Cabin Air Filter, Engine Air Filter, Fuel Filter, Transmission Fluid, Transaxle Fluid, Engine Coolant, Tires/ Tire Alignment, Battery, Brakes

11. Conclusion The Toyota Camry has higher salvage, better fuel economy, lower maintenance cost. The Toyota Camry has higher salvage, better fuel economy, lower maintenance cost. However, the Ford Fusion has a lower EUAC by 10.75% due to MSRP $18,155 to Camry $21,940. Therefore, it is the preferred car. However, the Ford Fusion has a lower EUAC by 10.75% due to MSRP $18,155 to Camry $21,940. Therefore, it is the preferred car.

12. Sources www.Edmunds.com www.Edmunds.com www.Edmunds.com Toyota and Ford Dealership of Montclair,CA Toyota and Ford Dealership of Montclair,CA www.kbb.com www.kbb.com www.kbb.com Pepboys of Pomona, CA Pepboys of Pomona, CA www.csupomona.edu/~rosenkrantz www.csupomona.edu/~rosenkrantz www.csupomona.edu/~rosenkrantz www.progressive.com www.progressive.com www.progressive.com www.geico.com www.geico.com www.geico.com