Check My Math (Car Comparisons Spreadsheet)

[TonyPSchaefer]

I realize that it's rather simplistic but I created a spreadsheet for a buddy who is looking at different cars. I compared the following vehicles:
- Ford Fusion
- Ford Fusion Hybrid
- Toyota Camry
- Toyota Camry Hybrid
- Toyota Prius
- Toyota Avalon
- Buick Lucerne

I don't want to kill him with a whole bunch of variables so it's as simple as: "how much does it cost to buy and how much does it cost to fuel each year?" I do not consider maintenance or environmental feel goodness or if someone invested the money saved purchasing a less-expensive vehicle. The MPGs came from fueleconomy.org and the costs of the cars I got from Googling base prices.

This is not something I plan on publishing or using publicly. All I want is a quick check that the numbers are correct.

[TonyPSchaefer]

I tweaked the spreadsheet to include tax incentives. I also added more formula functionality so that you can play with the numbers more.

[FireEngineer]

What tax incentives?? Only the Fusion Hybrid gets the hybrid tax credit and that is only $1,700. And you should include maintenance, not having to maintain the brakes as often and with no belts to worry about has to count for something.

Wayne

[DaveinOlyWA]

got my Pri tax free. that was over $2000 i didnt have to pay... but then again, that promo died a premature death due to the downturn in the economy. it was supposed to run until the end of 2010...

ok...hmmm....$21000 for a Prius??

[Darwood]

How much does it cost to continue securing fuel from countries that don't like us so much? Does that count? I know that's why i bought a Prius. (2 of them)
It's also why I will buy a Volt if and when that's possible.

Don't buy products from people wishing you harm.

[TonyPSchaefer]

I didn't check the tax incentives currently available on each vehicle.
I was hoping to not drag every potential cost of ownership into it. His attention span is not that long.
Trust me, Darwood, I'm more able to hit him with the environmental and national security aspects verbally than in Excel.

[grand total]

Your friends current car has a cost (value), it's not zero.

[bwilson4web]

The problem with a mass of numbers is it can overwhelm the reader with more detail than their minds are ready to take. That is one reason I use graphs since the lines show trends that otherwise would be difficult or impossible to see.

You've spent a lot of time on the spreadsheet and that is what a good modeler does. However, for persuasion, you might consider another approach, say modeling the Prius versus another 1.5L vehicle, Scion xA or Echo/Yaris. But as someone suggested, include the resale value over time.

The difference between the purchase price and the 1 year Kelly BB value is the 'capital' cost of ownership. Many of us believe the resale value of the Prius is pretty good ... they don't deprecate at the same rate as ordinary cars. This moderates the initial purchase price problem. Then add the lower operating costs and the answer becomes clearer.

One last thing, be sure to include in the gas-only vehicle price the things that are standard on our hybrids: alloy wheels, functional spoilers, electric everything, and automatic transmission.

Bob Wilson

[brick]

I think the better way to approach this problem is in terms of total cost of ownership (TCO) over xx years. (I suggest five as an average starting point.) Add the following for each:

-Purchase cost (including TTL and minus any real incentives). And don't use MSRP. Instead, use edmunds, KBB, or some ther site to find out what he's likely to actually pay for a car optioned the way he is likely to want it.
-Financing cost if he isn't paying cash.
-Insurance cost for five years
-Fuel cost for five years
-Maintenance cost for five years (if you can find any data on that, otherwise neglect it)

Then subtract:
-Residual value at five years. Use Edmund's or KBB to find out how fast similar vehicles have depreciated since they were new five years ago.

That's as accurate as you are likely to get, and you can just show him one number for each vehicle.