Team Members: Ramiro Alvarez Frank Gundran Minh Tran Matthew Zu
We are undertaking the comparison of a Hybrid vs. Gasoline powered Tahoe to see which of the two is truly a smart buy. ▪ We will be assuming: ▪ 15,000 miles per year ▪ 5 years of ownership cost ▪ Both Vehicles $5000 as down payment ▪ $3.50 per gallon nominal gas price ▪ Gas Tahoe - $47,917, 15 mpg (conservative driving) ▪ Hybrid Tahoe - $50,031, 21 mpg ▪ Both vehicles were packaged to cost as similarly as possible.
Scenario 1 Comparison with maintenance, repair, gas, and monthly payment—as the assumptions state. Scenario 2 Comparison without maintenance and repair. Scenario 3 Comparison change in gas price and including maintenance and repair. Scenario 4 Comparison with changing annual mileage and still including maintenance and repair.
▪ Monthly payment ▪ Maintenance and repairs ▪ Gas cost ▪ The unpredictable maintenance estimates make the plots difficult to predict, but if we remove these factors…
Scenario 2 Gas vs. Hybrid (w/o Maintenance & Repairs) Same down and monthly payment as before NO maintenance or repair costs Fuel is the only cost considered Here, without the erratic maintenance costs, it becomes clearer.
Scenario 3 Gas Fluctuation Analysis (w/ maintenance) $3.50 was used as a nominal price (ignoring the current dip in oil prices). The cost gap between the Gasoline and Hybrid versions increases along with a rise in fuel prices. The Differences is a linear relationship, according to the Progression column. Gas PricesGasHybridDifferenceProgression $2.50$1,325$1,298$27 $3.00$1,366$1,328$39$12 $3.50$1,408$1,357$51$12 $4.00$1,449$1,387$62$12 $4.50$1,491$1,417$74$12
Change in annual mileage changed price of gas EUC price for hybrid always lower As miles increase per year, EUC price increases
Under our analysis, the Tahoe Hybrid is a better value, as far as ownership cost data exists for the first 5 years. Based on vehicles packaged with similar options. Based on conservative driving of the Gasoline Tahoe to yield an average of 15 mpg.