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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 Motor Trend Magazine
Tuner: 2004 AEM Honda Civic Si
Civic duty done right
By John Kiewicz
Photography by the author
Advanced Engine Management is well known for its Honda/Acura-tuning savvy and makes Honda Civic speed parts (intake, exhaust, ignition, suspension, and such). Its latest creation uses wares from an Acura RSX--and AEM can help you build a similar hybrid. With the all-new 2006 Honda Civic soon hitting showrooms and clean 2002-2005 Civics available on the cheap, there'll be plenty of cash left over to modify your car for proper Civic duty. AEM replaced its project Civic Si's stock 2.0-liter i-VTEC I-4 and five-speed manual transmission with a high-revving (8000 rpm) 2.0-liter I-4 from an Acura RSX Type S. The tuner then paired the RSX's six-speed manual transmission with an ACT heavy-duty clutch and enhanced the RSX I-4 with much of its go-fast hardware, including Cosworth cylinder sleeves and Wiseco 10:1 forged pistons, to ensure strength. A Garrett GT28RS turbocharger breathes through an intercooler before mixing with fuel injected by AEM's high-volume fuel rails, adjustable regulator, and high-output fuel pump. A special exhaust manifold, downpipe, and stainless-steel exhaust system from DC Sports--AEM's sister company--combine to deliver 327 horsepower and lots of tire smoke.  Despite the Quaife limited-slip front differential, achieving a proper launch during testing without spinning the front tires is tricky. With a 3100-rpm launch, careful clutchwork, and copious tire squealing, the AEM powertrain helped us push the Civic to 12.7-second e.t.--tying a 2006 Corvette C6. The most impressive upgrade here is AEM's new engine-management system (the same EMS that's already set world records in everything from Hondas to Dodge Vipers), which is programmable and incorporates traction control. We were skeptical about its effectiveness, but were later impressed with how well the traction control works. Source: Advanced Engine Management (AEM)310/484-2322 www.aempower.com AEM further upgraded the Civic with its customized Brembo Big Brake Kit with 13-/12-inch rotors (front/rear) and Goodrich brake lines that deliver 24-foot-shorter stopping distances from 60 mph. Some of the braking improvement is due to the grip of the Toyo Proxes RA-1 tires mounted on Motegi Trak Lite 17x8.0-inch wheels. The grippy rubber works with DC Sports front and rear titanium strut bars, SPC front and rear adjustable caster kits, Progress coil-overs and anti-roll bars, and SPC lower control arms to deliver C6 Corvette-beating handling. On the skidpad, the AEM Civic delivers nearly 1 g--excellent for any car, especially a front-drive econocar that teeters on three wheels when cornering.
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Competition Corner - August 2003
We left you last month after constructing the subwoofer enclosures, and previously I talked about how Chris and I built the mechanism to convert our 2002 Civic demo car to center-drive. This time, you...
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