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IntelliChoice Value Rating
The chart above shows the purchase price versus ownership cost for each car from a specific vehicle class. The cars with better than average ownership cost/purchase price correlations are the best values, and these best value cars are represented by the dots below the curve. (i.e. the cars that have a lower ownership cost compared to its purchase price.) Those cars, which are worse than average or poor values, appear above the curve.
One way to view the graph is to draw a vertical line through any purchase price. You may see several dots that fall on this line - each of which is a car with a similar purchase price. However, notice the difference in ownership costs of each car represented by the vertical position of the dot. Two cars with the same purchase price can have thousands of dollars difference in ownership costs. This is what separates "good value" cars from "poor value" cars.
What is a good car value?
A "good car value" is one whose cost to own and operate is less than expected. The lower the cost to own and operate a car compared to what is expected, the better the value of that car.
But how do we know a car's "expected cost"?
For each car in the class, IntelliChoice plots the car's purchase price against the total five-year cost to own and operate it as determined by IntelliChoice research. Each dot on the above chart represents a specific car. Generally, we find that as the purchase price of the car increases, the cost to own and operate that car increases. This is why the dots on the graph tend to rise upward and to the right. This phenomenon also makes intuitive sense - as the purchase price rises, financing costs tend to rise, as do insurance, depreciation, taxes, and most other car ownership costs.
This is an important concept. It's normal for car ownership costs to rise as purchase price rises. Therefore, we can't just establish one "average" ownership cost number for each class, since cars in the class have different purchase prices. (This is why the "Relative" shown on each chart is different for cars in the same car class.)
Using statistical techniques, IntelliChoice "connects the dots" to form a curve that defines, for this car class, the relationship between the car's purchase price and car's ownership costs. This curve is our "expected cost" curve. The curve defines, for any car in the class, the five-year ownership cost that we would expect to see at each possible purchase price. If every car in the class were an average value, then all the dots would fall exactly on the curve. However, it's rare that any dot is exactly on the curve. Some dots are a little higher or lower, and some are a lot higher or lower. The dots that are a little lower are better than average car values, while the dots that are a lot lower are excellent car values (A dot that is a lot lower than the curve has ownership costs much lower than expected for a car of its purchase price). Conversely, a dot a little higher than the curve is a poorer than average car value, while a dot that is much higher than the curve is a poor car value.
Value is a relative term, not an absolute term. It is performing better than the logical expectation.
So is a Mercedes-Benz E320 expensive to own and operate? Certainly in an absolute sense. Most other cars cost less. But, when its cost to own and operate is plotted against cars with comparable invoice prices, the E320 costs less. So the E320 is not expensive to own and operate - it is a good car value. The Mercedes does not have low ownership costs, but it has low ownership costs for its invoice price.
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Article From Automobile Magazine
The subtle whine of the supercharger and the healthy growl of the exhaust motivate you to keep the transmission one gear lower than necessary. The well-damped suspension perfectly modulated the optional twenty-inch wheels over rough sections of tarmac, and the light but communicative steering points you exactly where you want to go. This is a car that inspires you to stop, tap the paddle shifter down to first, and hit the gas for another intoxicating run through the gears, just to experience the blissful marriage of the engine and the fast-shifting manu-matic. Welcome to the new Jaguar XKR. The addition of 120 hp is the primary difference between the XKR and the normally aspirated XK, but it's by no means the only one. Consider also the stiffer suspension, a new rear suspension brace, larger front brakes, and recalibrated stability control. A bespoke, aluminum-trimmed front bumper, body-color hood vents, unique nineteen- or twenty-inch wheels, and quad tailpipes distinguish the XKR's exterior. Overall, the subtle styling changes are effective, but we'd lose the Pep Boys-style body-color grilles around the foglights. Like the XK, the XKR is available either as a coupe or as a ragtop. The latter's rigid structure is a welcome change from the old open XK's body, which was as flexible as a gymnast but not nearly as athletic. The new convertible's cabin is free of excess drafts and buffeting even when you hit triple-digit speeds. The XKR coupe is a serious driver's car, more rewarding than either the Mercedes-Benz SL or the BMW 6-series, the cars Jaguar sees as its principal competitors. The insane M6 is faster, of course, but we prefer the more user-friendly, prettier Jag to the BMW. What the XKR has over both Germans is one of the best paddle-shift manu-matics and a more cosseting and fluid chassis. The XKR isn't a hard-core sports car like the Porsche 911, but Jaguar has retained the sophisticated body control and comfort for which it is famous while still providing enthusiasts with big grins on back roads. And there's still plenty of room in the XK lineup for a rumored, harder-core XKR-R model. Take that, M6.
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Top 10 Cars
What are your top 10 cars? My current list of favorites, in no particular order, are: Audi S4 Mercedes-Benz CLK430 ...
05/28/2005 | 01:05 AM
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Fleet Update: 2007 Jaguar XK
On a 100-mile buzz down to Irvine and back, online editor Mike Floyd notes of the 2007 Jaguar XK, "The XK's suspension is nice and comfortable, and the seat is comfy, too.
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Fleet Update: 2007 Jaguar XKR
Still about 1000 miles shy of completing what must be the world's longest break-in period-4975 miles for the 2007 Jaguar XKR-we've nevertheless been everyday visitors to the cat's lair, diligently but...
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June 2006
Bugatti Veyron, Saleen S7 Twin Turbo, Saturn Sky, Porsche 911 GT3, Porsche 911 Turbo, Cars in Movies, Chevrolet Corvette Sting Ray Racer, Red Bull Racing, Porsche Cayenne Turbo S in Dubai, Cadillac Es...
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June 2006
Bugatti Veyron, Saleen S7 Twin Turbo, Saturn Sky, Porsche 911 GT3, Porsche 911 Turbo, Cars in Movies, Chevrolet Corvette Sting Ray Racer, Red Bull Racing, Porsche Cayenne Turbo S in Dubai, Cadillac Es...
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