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SHAIRA MAE L.

VILLOLA
BSCE 3-2

Suzuki Swift 1.2L A/T Brand New Car(2015) Second Hand Car (2009)
Price Php 668,000 P230,000

Down Payment (20%) -Php 133,600 NONE


Amortization for 5 yrs. Php 621,857.97 NONE
Insurance 220,436.40 NONE
LTO Registration 31,929.14 26,545.67
Fuel Cost 410,820.93 410,820.93
Maintenance 20,582.31 218,772.25
Depreciation(Salvage 218,890.24 196,280
Value)

Calculation :

For Brand New Car

Price: 668,000
Down payment: 133,600
Depreciation: 218,890.24

Brand New Car Annual Cost F(5)


Amortization 117,129.792 621,857.97
LTO Registration 6014.50 31,929.14
Insurance 34,085.73 220,436.40
Maintenance 3,864.10 20,582.31
Fuel Cost 64,483.33 283,559.46

Total Expenses 295,668.21 1,305,626.75

Depreciation

𝐁𝐕𝟓 = 𝐁(𝟏 − 𝐑)𝐤

𝐁𝐕𝟓 = 𝟔𝟔𝟖, 𝟎𝟎𝟎(𝟏 − 𝟎. 𝟐)𝟓 𝑩𝑽𝟓 = 218,890.24

1
Amortization

Property Value =668,000


668,000
× . 20
133,600

Principal Amount
668,000
−133,600
534,400
Rates (5 yrs)
534,400
× .959
51248.96
Total Balance
534,400
+ 51 248.96
585,648.96
Annual Amortization
585,648.96
÷ 5
117,129.792

Monthly Amortization
117,129.792
÷ 12
9760.82
(1.03)5 −1
𝐹5 = 117,129.792 [ ] = 621,857.97
.03
Insurance

(1.03)5 −1
Insurance: 35,100[ ] = 186,350.67
.03
(1.03)5 −1
TPL + AOG: 1,700 + 6,100[ ] = 34,085.73
.03
186,350.67
+ 34,085.73
Total Insurance:
220,436.40

LTO Registration

(1.03)5 −1
𝐹5 = 6014.50[ .03
] =31,929.14

Maintenance

(1.03)5 −1
Oil Change: 1535[
.03
] = 8149.52
(1.03)5 −1
Tune up: 700 × 2 = 1160 [ ] = 7432.79
.03
Brake Repair: 1,500
Batteries: 3,500
Total Cost: 8,149.52 + 7,432.79 + 1,500 + 3,500 = 20,582.31

2
Fuel Cost (DIESEL VERSION)

60𝑘𝑚
22.35 𝑘𝑚⁄𝐿 →= 2.68𝑙 × 27.30⁄𝑙 = 73.164
22.35𝑘𝑚⁄
𝑙
 Per Day: 2(73.164) = Php146.33
 Per year: 365(146.328) = Php53,409.72
(1.03)5 −1
𝐹5 = 53,409.72 [ .03
] = Php283,559.46

Calculation:

For Second Hand Car

Price: P230,000

Depreciation: 75,366.4

Second Hand Car Annual Cost F(5)


LTO Registration 2100 11,149.19
Maintenance 41,197.33 218,772.25
Fuel Cost 77,380 410,820.93
Total Expenses 123,577.33 656,138.85

Depreciation

𝐁𝐕𝟓 = 𝐁(𝟏 − 𝐑)𝐤

𝐁𝐕𝟓 = 𝟐𝟑𝟎, 𝟎𝟎𝟎(𝟏 − 𝟎. 𝟐)𝟓

𝑩𝑽𝟓 = 75,366.4

LTO Registration

(1.03)5 −1
𝐹5 = 2,100[ ] = 11,149.19
.03

Maintenance

Tire Replacement: 4,993 × 4 = 19,972  Timing Belt Associated = 6,800


(1.03)5 −1
Oil Change: 1800 × 2 = 3600 [ ] = 19,112.90
.03
(1.03)5 −1 Total Cost:
Tune up: 580 × 4 = 2320 [ ] = 12,317.20
.03
Brake Repair: 1,500 × 2 = 3,000
(1.03)5 −1
Batteries: 3,300[ ] = 17,520.15
.03

Over Haul: (ONCE only)

 Front Suspension: 35,000


 Front Wheel Bearing: 55,000
 Clutch and Fly Wheel = 50,000

3
19,972
19,112.90
12,317.20
3,000
17,520.15
35,000
55,000
50,000
+ 6,800
218,772.25

4
Fuel Cost

20𝑘𝑚
10 𝑘𝑚⁄𝐿 → = 2𝑙 × 53⁄𝑙 = 106
10 𝑘𝑚⁄𝑙
Per Day: 2(106) = 212
Per year: 365(212) = 77,380
(1.03)5 −1
𝐹5 = 77,380 [ ] = 410,820.93
.03
Cash Flow Diagram:

For Brand New Car

I l l l l l

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For Second Hand Car

I I l l l l

Determining which is more Economical

𝐓𝐨𝐭𝐚𝐥 𝐂𝐨𝐬𝐭 𝟓 = 𝑩𝑽𝟓 − 𝑻𝒐𝒕𝒂𝒍 𝑬𝒙𝒑𝒆𝒏𝒔𝒆𝒔

Brand New Car

Total Expenses:

∑ 𝐂𝐎𝟓 = 𝟐𝟎𝟏, 𝟒𝟎𝟎(𝟏 + 𝟎. 𝟎𝟑)𝟓 + 𝟐𝟗𝟓, 𝟔𝟔𝟖. 𝟐𝟏(𝟏 + 𝟎. 𝟎𝟑)𝟓−𝟏 + 𝟐𝟗𝟓, 𝟔𝟔𝟖. 𝟐𝟏(𝟏 + 𝟎. 𝟎𝟑)𝟒−𝟏
+ 𝟐𝟗𝟓, 𝟔𝟔𝟖. 𝟐𝟏(𝟏 + 𝟎. 𝟎𝟑)𝟑−𝟏 + 𝟐𝟗𝟓, 𝟔𝟔𝟖. 𝟐𝟏(𝟏 + 𝟎. 𝟎𝟑)𝟐−𝟏
+ 𝟐𝟗𝟓, 𝟔𝟔𝟖. 𝟐𝟏(𝟏 + 𝟎. 𝟎𝟑)𝟏−𝟏

= 𝟏, 𝟖𝟎𝟑, 𝟐𝟐𝟎. 𝟒𝟖

𝐓𝐨𝐭𝐚𝐥 𝐂𝐨𝐬𝐭 𝟓 = 𝟑𝟐𝟗, 𝟗𝟕𝟑. 𝟕𝟔 − 𝟏, 𝟖𝟎𝟑, 𝟐𝟐𝟎. 𝟒𝟖

= −𝟏, 𝟒𝟕𝟑, 𝟐𝟒𝟔. 𝟕𝟐

Second Hand Car

Total Expenses:

∑ 𝐂𝐎𝟓 = 𝟓𝟗𝟗, 𝟎𝟎𝟎(𝟏 + 𝟎. 𝟎𝟑)𝟓 + 𝟏𝟐𝟑, 𝟓𝟕𝟕. 𝟑𝟑(𝟏 + 𝟎. 𝟎𝟑)𝟓−𝟏 + 𝟏𝟐𝟑, 𝟓𝟕𝟕. 𝟑𝟑(𝟏 + 𝟎. 𝟎𝟑)𝟒−𝟏
+ 𝟏𝟐𝟑, 𝟓𝟕𝟕. 𝟑𝟑(𝟏 + 𝟎. 𝟎𝟑)𝟑−𝟏 + 𝟏𝟐𝟑, 𝟓𝟕𝟕. 𝟑𝟑(𝟏 + 𝟎. 𝟎𝟑)𝟐−𝟏
+ 𝟏𝟐𝟑, 𝟓𝟕𝟕. 𝟑𝟑(𝟏 + 𝟎. 𝟎𝟑)𝟏−𝟏

= 𝟏, 𝟑𝟓𝟎, 𝟓𝟒𝟒. 𝟎𝟐

𝐓𝐨𝐭𝐚𝐥 𝐂𝐨𝐬𝐭 𝟓 = 𝟏𝟗𝟔, 𝟐𝟖𝟎 − 𝟏, 𝟑𝟓𝟎, 𝟓𝟒𝟒. 𝟎𝟐

6
= −𝟏, 𝟏𝟓𝟒, 𝟐𝟔𝟒. 𝟎𝟐