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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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Review From Motor Trend Magazine
2008 Motor Trend Truck of the Year Winner: Toyota TundraThe F-150, Ram, and Silverado guys had better get out of the rain / By Mark Williams / Photography by Robert Kerian /
Article provided by: Motor Trend Magazine
MORE ON THE 2008 MOTOR TREND TRUCK OF THE YEAR:THE 2008 CONTENDERS: 2008 Motor Trend Truck of the Year: Testing and FinalistsVIDEO: 2008 Motor Trend Truck of the Year Winner: Toyota TundraVIDEO: Of The Year: The Contenders - Motor Trend Truck of the YearWhen Toyota first announced it was coming out with a full-size pickup truck to go head to head with the big boys from Ford, Chevy, and Dodge, the question arose as to whether an import could truly compete as a heavyweight. The answer is in: The new Toyota Tundra is now ready to take on any American-made pickup truck -- on all levels. Superiority? Toyota is pulling no punches by introducing one of the biggest, strongest, and most capable vehicles in the segment, as well as investing billions in a new state-of-the-art manufacturing plant in the heart of truck country-San Antonio, Texas. Significance? With Toyota looking to more than double its presence in the hotly contested half-ton marketplace, the Tundra represents one of the most highly anticipated new vehicle launches in many years -- car or truck. Value? The new Tundra offers three different powertrains (one V-6 and two V-8s), with the 5.7-liter V-8 a high-tech wonder and torque monster -- and is among the most powerful engines in any half-ton configuration. Toyota's platform has the entire segment covered with three different bed sizes, three separate wheelbases covering five different cab and bed configurations, combined with three different trim packages (Tundra Grade, SR5, and Limited) in 4x4 and 4x2 drivetrains -- 44 different truck flavors to interested buyers, from work truck to luxury touring.  Offering that kind of variety right out of the gate is impressive and ambitious; in fact, some might say too ambitious. The recent launch of the new Tundra has not been without a few hiccups. Several months ago, an early output of camshafts in the 5.7-liter V-8 were failing. Toyota tells us they traced down all the affected parts to a specific batch and have since made the corrections to the design. No failures have surfaced since. More recently, there have been some reports of transmission shudder under certain low-speed conditions, which dealers have traced to a torque converter issue. Toyota says these incidents were isolated and have also been resolved. And finally, there's been chatter on the Internet concerning tailgate problems, which Toyota is in the process of tracking down. Our guess is many of these stories spread like wildfire, given the lightning-rod effect this new truck is having with enthusiasts and the speed with which an Internet item can travel. With all that said, let's take a deeper look at what's special about our 2008 winner. (EDITOR'S NOTE: Testing, judging, and story for the February 2008 issue of Motor Trend were completed and printed before the latest safety recall involving 15,600 2007 Tundras to correct a potential driveshaft issue)  Our testing includes a telling off-road loop around our proving-ground facility, which features sandy washes, rutted dirt roads, and high-speed gravel trails.  The Tundra's chassis and suspension handle everything the test track can throw their way. ... >>next page
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2007 Toyota Tundra
It's no secret that Toyota has been making a substantial effort of late to appear more American. Its recent entries into the premier leagues of good-ole-boy racing--first the NASCAR Craftsman Truck Se...
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2007 Toyota Tundra
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Motor Trend 2004 Truck Of The Year Testing
How do you compare a 500-horsepower, Viper-powered Dodge, a four-cylinder GM entry-level truck, Nissan's bodacious, first-ever full-size pickup, a convertible retro-rod-like Chevy, the biggest Toyota ...
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