1 / 19

Are Hybrid Vehicles worth the extra cost?

Are Hybrid Vehicles worth the extra cost?. Ryan Pietropaolo NCSSM January 2012. Goal. Compare costs of Hybrids with non-hybrid vehicles. Compare environmental impacts i.e. oil use Cost of owning a vehicle. Brain-Storm Variables. i nitial cost m iles per gallon f inancing rates

tulia
Download Presentation

Are Hybrid Vehicles worth the extra cost?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Are Hybrid Vehicles worth the extra cost? Ryan Pietropaolo NCSSM January 2012

  2. Goal • Compare costs of Hybrids with non-hybrid vehicles. • Compare environmental impacts i.e. oil use • Cost of owning a vehicle.

  3. Brain-Storm Variables • initial cost • miles per gallon • financing rates • gas prices • tax rate • maintenance • repairs • average lifespan • insurance cost • depreciation value

  4. apples-to-apples comparison • 2012 Honda Civic Sedan • Hybrid vs. LX

  5. Basic Assumptions • Driving habits: 15,000 miles per year; 50/50 city/highway • Purchased in North Carolina (Durham County) • Inflation 3% per year • Insurance: same coverage, based on car value • Equal Maintenance costs

  6. Initial Costs and Financing • Hybrid: $24,050; LX: $18,655 • no money down • 48 month loan on initial cost only • 4% annual interest, compounded monthly

  7. Monthly Payment

  8. monthly payment cont.

  9. Repayment Cost • Annual Cost: Hybrid- $6516 LX- $5054

  10. Fuel Costs • Hybrid: 44 miles/gal (combined city/hwy) • LX: 33.5 miles/gal (combined city/hwy) • Current gas price: $3.35 (inc. 3%/year)

  11. Cumulative Fuel Cost

  12. Tax • New car tax rate – 7.3% (North Carolina) • Yearly Property Tax Rate- 1.2481% (Durham) • Depreciation Rate:

  13. Cumulative Tax Cost

  14. Yearly Maintenance Costs • 5-year estimates based on previous models • Increase 3% each year after year 5

  15. Yearly Repair Costs • 5-year estimates based on previous models • Increase 10% each year after year 5 • Repairs same for both models • Battery Packs generally last the life of the vehicle and reduce engine wear. (.2% F.R.)

  16. Yearly Insurance Costs • Liability insurance costs are equivalent for both vehicles. ($450 per year) • Non-liability costs are determined on the depreciated value of the car. (3% per year) • Owners only carry liability insurance after the ninth year.

  17. Oil Conversions • 42 gallons of oil per barrel • 45% of oil becomes usable gasoline • Super Tanker carries 2 million barrels of oil • 21,000 Honda Hybrids sold in United States last year

  18. Extensions • What current gas price would make it cost effective to buy a hybrid? • At what point should you sell your SUV and buy a hybrid? • Comparisons involving Electric and Diesel. • When is it cost-effective to build light-rail transit? • What is the impact of the CAFE standards on oil dependence?

  19. Questions / Comments Ryan Pietropaolo NCSSM pietropaolo@ncssm.edu

More Related