Team Members:
Ramiro Alvarez
Frank Gundran
Minh Tran
Matthew 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
Annual Cost Analysis
Cost
$18,000.00
$16,000.00
$14,000.00
$12,000.00
$10,000.00
$8,000.00
$6,000.00
$4,000.00
$2,000.00
$0.00
Gas
Hybrid
0
1
2
3
4
5
6
Years
▪ The unpredictable maintenance estimates make the plots difficult to
predict, but if we remove these factors…
Scenario 2
Gas vs. Hybrid (w/o Maintenance & Repairs)
• Same down and monthly payment as before
• NO maintenance or repair costs
• Fuel is the only cost considered
Annual Cost Analysis w/o Maintainence
$16,000.00
$14,000.00
Cost
$12,000.00
$10,000.00
Gas
$8,000.00
Hybrid
$6,000.00
$4,000.00
$2,000.00
$0.00
0
1
2
3
4
5
6
Years
• Here, without the erratic maintenance costs, it becomes clearer.
Scenario 3
Gas Fluctuation Analysis (w/ maintenance)
EUC Price (Dollar)
Gas Fluctuation Analysis

$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.
$1,550
$1,500
$1,450
$1,400
Gas
$1,350
Hybrid
$1,300
$1,250
$1,200
$2.50
$3.00
$3.50
$4.00
$4.50
Gas Prices (Dollar)
Gas Prices
Gas
Hybrid
Difference
Progression
$2.50
$1,325
$1,298
$27
$3.00
$1,366
$1,328
$39
$12
$3.50
$1,408
$1,357
$51
$12
$4.00
$1,449
$1,387
$62
$12
$4.50
$1,491
$1,417
$74
$12
 Change in annual mileage changed price of gas
 EUC price for hybrid always lower
 As miles increase per year, EUC price increases
Annual Mileage Analysis
1500
EUC Price
1450
1400
Gas
1350
Hyrbid
1300
1250
1200
11000
13000
15000
Miles/Year
17000
19000

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.



www.chevrolet.com
www.edmunds.com
www.autos.aol.com