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ECONOMIC COMPARISON BETWEEN THE HONDA CIVIC EX AND THE CIVIC HYBRID CVT

ECONOMIC COMPARISON BETWEEN THE HONDA CIVIC EX AND THE CIVIC HYBRID CVT. Team 3 Members: Abdulaziz Bawany Brett Jolley Erick Ornelas Ryan Thomas Timothy Njuguna. Honda Civics. Can you see the difference?. AGENDA. Assumptions Honda Civic EX Specifications

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ECONOMIC COMPARISON BETWEEN THE HONDA CIVIC EX AND THE CIVIC HYBRID CVT

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  1. ECONOMIC COMPARISON BETWEEN THE HONDA CIVIC EX AND THE CIVIC HYBRID CVT Team 3 Members: Abdulaziz Bawany Brett Jolley Erick Ornelas Ryan Thomas Timothy Njuguna

  2. Honda Civics Can you see the difference?

  3. AGENDA • Assumptions • Honda Civic EX Specifications • Honda Civic Hybrid CVT Specifications • Special Hybrid Aspects to Consider • Sensitivity Analysis’ • Conclusion • Resources

  4. ASSUMPTIONS 25yr Old engineering student 50k per year Work in L.A. and lives near L.A. Qualifies for best APR Consider Buying a New Honda Limit study to 5years

  5. HONDA 2004 CIVIC EX 1.7L VTECH ENGINE EPA mpg city 26/ highway 38 Average tested mpg 29 Regular unleaded gasoline @ $2.00/gal Warranty 3yr/36,000miles MSRP $18,500 APR 3%

  6. THE 2004 HONDA CIVIC HYBRID CVT Ultra-Fuel efficient gasoline-electric engine EPA mpg 46 city/51 highway Regular unleaded gasoline @ $2.00/gal Average test mpg 42.3 3-year/ 36000-mile limited warranty 8year/96000mile for Battery MSRP $21,360

  7. SPECIAL ASPECTS TO CONSIDER One time $1500 Tax incentive for Hybrid Less annual insurance premiums for hybrid Free parking for hybrid in some cities The Gas mileage for the Hybrid car varies widely depending on driving conditions.

  8. Sensitivity Analysis* Change in Gas Price * • Total Vehicle initial costs: Civic = $18,500 Hybrid = $21,360 • Salvage Value: Civic = $11,100 Hybrid = $12,816 • Average Life of Vehicle: Civic = 250k miles Hybrid = 180k miles • Average Miles/Year: Civic = 12,000 Hybrid = 12,000 • Miles Per Gallon (MPG): Civic = 29 mpg Hybrid = 38 mpg • Gas Price / Gallon: $.$$ • Maintenance + Insurance + Parking Costs: Civic = $2,370 Hybrid = $2,165

  9. Variation of Annual Cost with Change in Gasoline Cost After $1.52, the Hybrid becomes LESS expensive at a cost of $5349/year

  10. Sensitivity Analysis* Change in Gas Price and Miles/Year *(w/Salvage Value % Change) • Total Vehicle initial costs: Civic = $18,500 Hybrid = $21,360 • Salvage Value: Civic = $11,100 Hybrid = $10,680 • Average Life of Vehicle: Civic = 250k miles Hybrid = 180k miles • Average Miles/Year: 12k and 15k miles/year • Miles Per Gallon (MPG): Civic = 29 mpg Hybrid = 38 mpg • Gas Price / Gallon: $.$$ • Maintenance + Insurance + Parking Costs: Civic = $2,370 Hybrid = $2,165

  11. Variation of Annual Cost with Gasoline Cost and Adjustment to Hybrid Salvage Value After $5.26, the Hybrid becomes LESS expensive at a cost of $7135.22/year After $4.50, the Hybrid becomes LESS expensive at a cost of $7000/year

  12. Sensitivity Analysis* Alternate Gas Price and Miles/Year * • Total Vehicle initial costs: Civic = $18,500 Hybrid = $21,360 • Salvage Value: Civic = $11,100 Hybrid = $12,816 • Average Life of Vehicle: Civic = 250k miles Hybrid = 180k miles • Average Miles/Year: #k miles/year • Miles Per Gallon (MPG): Civic = 29 mpg Hybrid = 38 mpg • Gas Price / Gallon: $1.50 and $2.00 • Maintenance + Insurance + Parking Costs: Civic = $2,370 Hybrid = $2,165

  13. Variation of Annual cost with Annual mileage After 13,000 miles/year, the Hybrid becomes LESS expensive at a cost of $5395/year After 10,004 miles/year, the Hybrid becomes LESS expensive at a cost of $5410/year

  14. Variation in Average Miles per Gallon and Annual Miles Driven

  15. Sensitivity Analysis* Gas Price of $2.00 with Different Parking Costs* • Total Vehicle initial costs: Civic = $18,500 Hybrid = $21,360 • Salvage Value: Civic = $11,100 Hybrid = $11,748 • Average Life of Vehicle: Civic = 180k miles Hybrid = 180k miles • Average Miles/Year: Civic = 14,000 Hybrid = 14,000 • Miles Per Gallon (MPG): Civic = 29 mpgHybrid = # mpg • Gas Price / Gallon: $.$$ • Maintenance + Insurance +Parking Costs:

  16. Sensitivity Analysis* Annual Cost of the Civic with Variation in Annual Parking Fees * At a worst case 36 MPG, a parking cost of $175, the Hybrid becomes LESS expensive at a cost of $5860/year

  17. ConclusionHybrid-Honda Civic • Your helping the environment • Your getting more MPG (up to 51 MPG) • You get Incentives (tax, parking, ins.) Ultimately … your life style determines whether it is best to purchase a Honda Hybrid CVT or a Civic EX.

  18. USEFUL RESOURCES http://handcars.com http://motortrend.com/roadtest www.irs.gov Norm Reeves HONDA Dealership Diamond Bar HONDA Dealership COBRA INSURANCE AGENCY

  19. THANKS FOR BEING A GREAT Audience - Team 3 -

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