1. Are Hybrid Vehicles worth the extra cost? Ryan Pietropaolo NCSSM January 2012

2. Goal Compare costs of Hybrids with non-hybrid vehicles. Compare environmental impacts i.e. oil use Cost of owning a vehicle.

3. Brain-Storm Variables initial cost miles per gallon financing rates gas prices tax rate maintenance repairs average lifespan insurance cost depreciation value

4. apples-to-apples comparison 2012 Honda Civic Sedan Hybrid vs. LX

5. Basic Assumptions Driving habits: 15,000 miles per year; 50/50 city/highway Purchased in North Carolina (Durham County) Inflation 3% per year Insurance: same coverage, based on car value Equal Maintenance costs

6. Initial Costs and Financing Hybrid: $24,050; LX: $18,655 no money down 48 month loan on initial cost only 4% annual interest, compounded monthly

7. Monthly Payment

8. monthly payment cont.

9. Repayment Cost Annual Cost: Hybrid- $6516LX- $5054

10. Fuel Costs

11. Cumulative Fuel Cost

12. Tax New car tax rate – 7.3% (North Carolina) Yearly Property Tax Rate- 1.2481% (Durham) Depreciation Rate:

13. Cumulative Tax Cost

14. Yearly Maintenance Costs 5-year estimates based on previous models Increase 3% each year after year 5

15. Yearly Repair Costs 5-year estimates based on previous models Increase 10% each year after year 5 Repairs same for both models Battery Packs generally last the life of the vehicle and reduce engine wear. (.2% F.R.)

16. Yearly Insurance Costs Liability insurance costs are equivalent for both vehicles. ($450 per year) Non-liability costs are determined on the depreciated value of the car. (3% per year) Owners only carry liability insurance after the ninth year.

17. Oil Conversions 42 gallons of oil per barrel 45% of oil becomes usable gasoline Super Tanker carries 2 million barrels of oil 21,000 Honda Hybrids sold in United States last year

18. Extensions What current gas price would make it cost effective to buy a hybrid? At what point should you sell your SUV and buy a hybrid? Comparisons involving Electric and Diesel. When is it cost-effective to build light-rail transit? What is the impact of the CAFE standards on oil dependence?

19. Questions / Comments Ryan Pietropaolo NCSSM pietropaolo@ncssm.edu