Economic Comparison: Honda Accord vs. Toyota Prius

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Economic ComparisonHonda Accord vs. Toyota Prius

• Team 3
• Richard Do
• Peter Jo
• Lester Oestreich
• Carlos Ruiz
• Jane Veerachanavirut

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ObjectiveWhat car is a better deal in a 5-year
period?
Honda Accord 2003
Toyota Prius 2003
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Analysis Parameters
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Economic Analysis Parameters

• Financing
• Major Maintenance
• Insurance
• Salvage Value
• Gas Costs
• Scheduled/Minor Maintenance
• License and Registration Fee

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Economic Analysis Method

• Net Present Worth and Equivalent Uniform Cost
• NPWPW 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

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Initial Analysis Results

• Toyota
• NPW 48,305.09
• EUC 1,026.34
• Honda
• NPW 43,208.82
• EUC 918.06

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Sensitivity Analysis

• Factors affecting NPW
• APR
• Insurance
• Gas Inflation
• Downpayment
• Analysis Term

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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

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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 - http//www.carbuyingtips.com/
• Car Buying Guides
• 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