Team Members: Ramiro Alvarez

Frank GundranMinh TranMatthew Zu

We are undertaking the comparison of a Hybrid vs. Gasoline powered Tahoe to see which of the two is truly a smart buy.▪ We will be assuming: ▪ 15,000 miles per year▪ 5 years of ownership cost▪ Both Vehicles $5000 as down payment▪ $3.50 per gallon nominal gas price▪ Gas Tahoe - $47,917, 15 mpg (conservative driving)▪ Hybrid Tahoe - $50,031, 21 mpg

▪ Both vehicles were packaged to cost as similarly as possible.

Scenario 1 Comparison with maintenance, repair, gas, and

monthly payment—as the assumptions state. Scenario 2

Comparison without maintenance and repair. Scenario 3

Comparison change in gas price and including maintenance and repair.

Scenario 4 Comparison with changing annual mileage and

still including maintenance and repair.

▪ Monthly payment▪ Maintenance and repairs ▪ Gas cost

▪ The unpredictable maintenance estimates make the plots difficult to predict, but if we remove these factors…

Scenario 2Gas vs. Hybrid (w/o Maintenance & Repairs)

• Same down and monthly payment as before• NO maintenance or repair costs• Fuel is the only cost considered

• Here, without the erratic maintenance costs, it becomes clearer.

Annual Cost Analysis w/o Maintainence

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

$16,000.00

0 1 2 3 4 5 6

Years

Co

st Gas

Hybrid

Scenario 3Gas Fluctuation Analysis (w/ maintenance)

$3.50 was used as a nominal price (ignoring the current dip in oil prices).

The cost gap between the Gasoline and Hybrid versions increases along with a rise in fuel prices.

The Differences is a linear relationship, according to the Progression column.

Gas Fluctuation Analysis

$1,200

$1,250

$1,300

$1,350

$1,400

$1,450

$1,500

$1,550

$2.50 $3.00 $3.50 $4.00 $4.50

Gas Prices (Dollar)

EU

C P

rice

(D

ollar

)

Gas

Hybrid

Gas Prices GasHybri

dDifferen

ceProgressio

n

$2.50$1,32

5$1,29

8 $27  

$3.00$1,36

6$1,32

8 $39 $12

$3.50$1,40

8$1,35

7 $51 $12

$4.00$1,44

9$1,38

7 $62 $12

$4.50$1,49

1$1,41

7 $74 $12

Annual Mileage Analysis

1200

1250

1300

1350

1400

1450

1500

11000 13000 15000 17000 19000

Miles/Year

EU

C P

rice

Gas

Hyrbid

Change in annual mileage changed price of gas

EUC price for hybrid always lower

As miles increase per year, EUC price increases

Under our analysis, the Tahoe Hybrid is a better value, as far as ownership cost data exists for the first 5 years. Based on vehicles packaged with similar

options. Based on conservative driving of the

Gasoline Tahoe to yield an average of 15 mpg.

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