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TO COMPARE DIFFERENT VEHICLE TYPES TO DETERMINE WHAT VEHICLE IS MOST COST ... A BASELINE OF EXPECTED OWNERSHIP, IN YEARS, WILL BE CHOSEN TO COMPARE UPON. ...

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Slide 1

RETURN OF HYBRId DRIVETRAIN PREMIUMS NICK GOLDBERG – TECHIE PAUL BASALLO – SUMMARIZER JORGE NUNO - ORGANIZER

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OBJECTIVE TO DETERMINE THE "BREAKEVEN POINT" WHERE THE EXTRA COST OF A HYBRID IS MET IN FUEL SAVINGS. TO COMPARE DIFFERENT VEHICLE TYPES TO DETERMINE WHAT VEHICLE IS MOST COST EFFECTIVE. TO ESTIMATE THE SAVINGS AFTER THE BREAKEVEN MILEAGE IS ATTAINED.

Slide 3

VARIABLES TO CONSIDER THE VEHICLES COMPARED MUST BE OF THE SAME MAKE AND MODEL. SUV VS. Vehicle HIGHWAY MILES VS. CITY MILES HYBRID DRIVETRAIN MAINTENACE AND REPLACEMENT COSTS RESALE VALUES CARBON DIOXIDE EMISSIONS INSURANCE AND REGISTRATION COSTS

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SCENARIO #1 COMPARISON OF A HONDA CIVIC HYBRID VS. HONDA CIVIC ICE. THIS WILL FULFILL THE MID SIZE SEDAN GROUP COMPARISON HIGHWAY VS. CITY ADVANTAGES

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SCENARIO #2 COMPARISON OF A TOYOTA CAMRY HYBRID VS. TOYOTA CAMRY ICE. THIS WILL FULFILL THE FULL SIZE SEDAN GROUP COMPARISON HIGHWAY VS. CITY ADVANTAGES

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SCENARIO #3 COMPARISON OF A CHEVY TAHOE HYBRID VS. TAHOE ICE. THIS WILL FULFILL THE SUV GROUP COMPARISON HIGHWAY VS. CITY ADVANTAGES

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COMPARISON METHODOLOGY WE WILL FORCAST THE NET PRESENT WORTH FROM CASH INFLOWS AND OUTFLOWS. RATE OF INFLATION WILL BE INCLUDED IN OUR ASSUMPTIONS. A BASELINE OF EXPECTED OWNERSHIP, IN YEARS, WILL BE CHOSEN TO COMPARE UPON. THE DRIVETRAIN WITH THE GREATEST NET PRESENT WORTH WILL BE THE MOST ECONOMICAL. CARBON DIOXIDE EMISSIONS WILL ALSO BE TAKEN INTO CONSIDERATION.

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RESOURCES MILEAGE: EPA ESTIMATES COSTS: MANUFACTURER ESTIMATES THIRD PARTY COMPARISONS: CAR AND DRIVER POPULAR MECHANICS SALVAGE VALUE: KELLY BLUE BOOK FUEL COSTS: AVERAGE PRICE INCREASE WILL BE USED TO PREDICT FUTURE FUEL COSTS VEHICLE LICENSING AND INSURANCE WILL BE OBTAINED FROM RESPECTIVELY, DMV AND STATE FARM INSURANCE

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