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OBJECTIVE  DETERMINE THE EQUIVALENT COST OF A HYBRID CIVIC TO A PURE INTERNAL COMBUSTION HONDA CIVIC.  COMPARE HIGHWAY AND CITY MILEAGE RATIOS TO DETERMINE.

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Presentation on theme: "OBJECTIVE  DETERMINE THE EQUIVALENT COST OF A HYBRID CIVIC TO A PURE INTERNAL COMBUSTION HONDA CIVIC.  COMPARE HIGHWAY AND CITY MILEAGE RATIOS TO DETERMINE."— Presentation transcript:

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2 OBJECTIVE  DETERMINE THE EQUIVALENT COST OF A HYBRID CIVIC TO A PURE INTERNAL COMBUSTION HONDA CIVIC.  COMPARE HIGHWAY AND CITY MILEAGE RATIOS TO DETERMINE WHICH VEHICLE WOULD BE THE BEST ECONOMIC ALTERNATIVE.

3 HYBRID/GASOLINE SCENARIO  FIVE MILEAGE RATIOS: 100% HIGHWAY 100% HIGHWAY 75% HIGHWAY 75% HIGHWAY 50% HIGHWAY 50% HIGHWAY 25% HIGHWAY 25% HIGHWAY 100% CITY 100% CITY  ASSUME 15,000 MILES PER YEAR

4 VARIABLES TO CONSIDER  EQUIVALENT WEIGHT AND ACCESSORIES  MONTHLY PAYMENTS  MAINTENANCE AND REPAIR COSTS  SALVAGE VALUES  GASOLINE PRICE INFLATION

5 COMPARISON METHODOLOGY 1. MONTHLY PAYMENT 2. INSURANCE + MAINTENANCE + REPAIRS 3. GALLONS TO MILEAGE RATIO 4. TOTAL COSTS, USE MARR, FIND PW 5. FIND EUC OF EACH DRIVETRAIN AND MILEAGE RATIO

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11 RESOURCES  MILEAGE: EPA ESTIMATES EPA ESTIMATES  HONDA ESTIMATES: MSRP MSRP MAINTENANCE COSTS MAINTENANCE COSTS  YAHOO AUTOS: INSURANCE INSURANCE SALVAGE VALUES SALVAGE VALUES  FUEL COSTS: RANDOMUSELESS.INFO RANDOMUSELESS.INFO


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