Toyota vs. Ford

1
Toyota vs. Ford

• Team 2
• Anthony DeBoer
• Alex Owen
• Todd Chung
• Francis Roldan

2
Presentation Outline

• Scenario
• Effects of APR and Down Payment on EUAC
• Warranty and Resale Value
• Fuel Economy and Insurance
• Maintenance
• Conclusion

3
Scenario

• 23 year old starting engineer at Chevron Corp.
  with 60,000 annual salary drives 15,000 miles
  per year for 6 years
• Lives in Pomona, CA
• 80 Highway, 20 City
• He is in good health, has a good driving record
  and credit score
• MSRP Toyota Camry 21,940, Ford Fusion 18,155

4
Effect of APR on EUAC
5
Effect of Down Payment on EUAC

• 8 APR for 48 month loan

6
Warranty

• FORD FUSION
• Basic 3 yr. / 36,000 mi.
• Drive train 5 yr. / 60,000 mi.
• Roadside 5 yr. / 60,000 mi.
• Rust 5 yr. / Unlimited mi.
• 5 Years / 60,000 Miles
• Deductible  
•  0  100
• 1,132 832

• TOYOTA CAMRY
• Basic 3 yr. / 36,000 mi.
• Drive train 5 yr. / 60,000 mi.
• Rust 5 yr. / Unlimited mi.
• Deductible  
•  0  100
• 1,029 729

7
Resale value
Camry in 2000 Camry in 2000 Camry in 2006 Camry in 2006 Fusion in 2000 Fusion in 2000 Fusion in 2000 Fusion in 2006 Fusion in 2006
(Note Using the Taurus for the Fusion) (Note Using the Taurus for the Fusion)
16,816 7,092 13,981 13,981 4,362

Resale value 7092 / 16816 42.1 .421 x 21940 9240 Resale value 7092 / 16816 42.1 .421 x 21940 9240 Resale value 7092 / 16816 42.1 .421 x 21940 9240 Resale value 7092 / 16816 42.1 .421 x 21940 9240 Resale value 4362 / 13981 31.1 .311 x 18155 5646 Resale value 4362 / 13981 31.1 .311 x 18155 5646 Resale value 4362 / 13981 31.1 .311 x 18155 5646 Resale value 4362 / 13981 31.1 .311 x 18155 5646 Resale value 4362 / 13981 31.1 .311 x 18155 5646
8
Fuel Economy

• Estimates
• 15,000 miles driven per year
• 80 highway, 20 city miles
• Avg. cost per gal 3.50
• 6 year time period

• Toyota Camry
• 24mpg city/34mpg highway
• 478 gal per yr
• 1 yr cost 1235.79
• 6yr cost 10036.76

• Ford Fusion
• 23mpg city/31mpg highway
• 518 gal per yr
• 1yr cost 1811.11
• 6yr cost 10868.16

9
Insurance

• 23 Year Old Male
• 15,000 miles per year
• Single
• Living in Pomona
• Good driving record

10
Annual Maintenance

• 10 Difference Annually, Oil Changes, Cabin Air
  Filter, Engine Air Filter , Fuel Filter,
  Transmission Fluid, Transaxle Fluid, Engine
  Coolant, Tires/ Tire Alignment, Battery, Brakes

11
Conclusion

• The Toyota Camry has higher salvage, better fuel
  economy, lower maintenance cost.
• However, the Ford Fusion has a lower EUAC by
  10.75 due to MSRP 18,155 to Camry 21,940.
  Therefore, it is the preferred car.

12
Sources

• www.Edmunds.com
• Toyota and Ford Dealership of Montclair,CA
• www.kbb.com
• Pepboys of Pomona, CA
• www.csupomona.edu/rosenkrantz
• www.progressive.com
• www.geico.com