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

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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

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Honda Civics
Can you see the difference?
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AGENDA

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

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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

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HONDA 2004 CIVIC EX

• 1.7L VTECH ENGINE
• EPA mpg city 26/ highway 38
• Average tested mpg 29
• Regular unleaded gasoline _at_ 2.00/gal
• Warranty 3yr/36,000miles
• MSRP 18,500
• APR 3

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THE 2004 HONDA CIVIC HYBRID CVT

• Ultra-Fuel efficient gasoline-electric engine
• EPA mpg 46 city/51 highway
• Regular unleaded gasoline _at_ 2.00/gal
• Average test mpg 42.3
• 3-year/ 36000-mile limited warranty
• 8year/96000mile for Battery
• MSRP 21,360

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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.

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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

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

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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
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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

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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
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Variation in Average Miles per Gallon and Annual
Miles Driven
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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 mpg Hybrid mpg
• Gas Price / Gallon .
• Maintenance Insurance Parking Costs

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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
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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.

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USEFUL RESOURCES

• http//handcars.com
• http//motortrend.com/roadtest
• www.irs.gov
• Norm Reeves HONDA Dealership
• Diamond Bar HONDA Dealership
• COBRA INSURANCE AGENCY

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• THANKS
• FOR
• BEING A
• GREAT
• Audience
• - Team 3 -