1. Economic Comparison: Honda Accord vs. Toyota Prius
Team 3
Richard Do
Peter Jo
Lester Oestreich
Carlos Ruiz
Jane Veerachanavirut

2. Objective What car is a better deal in a 5-year period?
Honda Accord 2003
Toyota Prius 2003

3. Analysis Parameters Gender: Male Finance/Lease Term: 4 Years Age: 25
APR
8.90%
Residence:
Pomona, CA
Warranty
3 Years
Education:
BS Engineering
Analysis Term
5 Years
Credit Score:
Good
Insurance Coverage
100,000/300,000
Salvage Condition
Insurance Term
1 year
Down Payment:
10.00%
Miles Driven per year

4. Economic Analysis Parameters
Financing
Major Maintenance
Insurance
Salvage Value
Gas Costs
Scheduled/Minor Maintenance
License and Registration Fee

7. Economic Analysis Method
Net Present Worth and Equivalent Uniform Cost
NPW=PW of cost – PW of benefits
EUC = P(A/P, i, n) - S(A/F, i, n)
5-year Analysis Term
Minimum Attractive Rate of Return 10%
Sensitivity Analysis

8. Initial Analysis Results
Toyota
NPW $48,305.09
EUC $1,026.34
Honda
NPW $43,208.82
EUC $918.06

9. Sensitivity Analysis Factors affecting NPW APR Insurance Gas Inflation
Downpayment
Analysis Term

11. Conclusion Honda Accord is the better buy based on:
Initial economical analysis.
Sensitivity analysis.
High maintenance cost of Toyota Prius offsets the savings of its fuel consumption.
References:
Toyota.com
Honda.com
KBB.com
Consumerreports.com
Eia.doe.gov

12. Useful Resources Bankrate.com – www.bankrate.com
Offers current information on the best APR for each loan term new and used
Information on auto loans in general, credit score, buying
Car Buying Guides
Offers a variety of calculators on
How much you can afford?
New or Used?
Buy or Lease?
Car Buying Tips -
Credit Reports, Car Loans, Quotes, and Warranty Information
Information on Financing, Lease, New, Used
Information on how to avoid fraud and current scams
Information on car insurance