|
|
|
|
Value Rating
Above Average
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.
|
|
|
|
|
|
|
Article From Motor Trend Magazine
Road Test: 2005 Volvo XC90 V-8One for enthusiast college professors / By Todd Lassa / Photography by the author /
Article provided by: Motor Trend Magazine
Holy Birkenstock, Sven, Volvo's got a V-8! What will its stereotypical constituency of college professors and earth mothers think of the first eight-banger in Volvo's 77 years? Volvo's willing to chance its P.C. image to remain the builder of America's favorite European sport/utility, the XC90, and take on the likes of BMW's X5 4.4i, VW's Touareg V8, and Cadillac's Northstar V-8-powered SRX, with a Yamaha-developed V-8, for about $6000 less than these competitors.
The new-from-scratch powerplant fits under the XC90's hood because it's a 60-degree all-aluminum design with a reversed-bank offset and a two-stage cam timing chain and direct-mounted accessories. A counter-rotating-balance shaft keeps the cylinders chugging smoothly under the same hood that usually houses the 208-horsepower, 2.5-liter turbo inline-five or the 268-horsepower, 2.9-liter twin-turbo inline T6. The Yamaha makes 311 horsepower and 325 pound-feet--just four horses short of the X5 4.4i V-8, with an extra pound-foot of torque. Volvo also boasts the first Ultra-Low Emissions Vehicle II status in a gas V-8 and engine packaging that maintains the XC90's exemplary 35-mph head-on and 40-mph offset-crash properties. The V-8 has a 1250-rpm idle at cold start for a lean air/fuel mixture, and it settles in at 675 rpm when warmed. With 45 more pound-feet than the T6, the Swedish sport/utility gets an Aisin AW F21 six-speed automatic and reinforced Haldex all-wheel drive. The six-speed is 22 pounds lighter than the T6's four-speed, and overall the XC90 V-8 weighs just 33 pounds more than the T6. The V-8 has a torquey, smooth driveline with a subtle motorboat burble. Its front wheels get a bit light in full-throttle launches, until the on-demand rears get the message. The overhead cam is almost too refined, with a V-8 message that's more comfortable than a roomful of Swedish furniture. Except for that launch, power comes on subtly and should match the X5 4.4i's 6.8-second 0-60-mph time. It's the kind of power that makes you think you're going slower than you really are--quite different than a six with turbo lag. Other changes include exclusive designs for the 18-inch wheels and the tailpipes, a new grille mesh, color-key door handles and side moldings, and 2.1-gallons more premium fuel capacity. Volvo will build 15,000 XC90 V-8s for the world per year, with 11,250 headed for the United States. Volvo says Yamaha has capacity for another 5000 engines, so expect the V-8 to pop up in a heavily revised 2006 S80 and perhaps even a future Lincoln model. Hey, college profs need power, too. ... >>next page
|
Volvo XC90 is for the Kids
Long time family loving car, the Volvo XC90, is the leader of the pack in providing families not only with protection...
01/29/2008 | 14:01 PM
|
|
Volvo C70, S80, and XC90 are federal Top Safety Picks
IRVINE, Calif., Nov. 19, 2007 -- For the past two years, Volvo's XC90 SUV, C70 Convertible, and S80 Sedan have all...
11/22/2007 | 22:11 PM
|
|
Volvo Goes "Somewhere In The World" For XC90 Treasure
(IRVINE, Calif., April 25, 2007) - Ahoy, raise the main sail, maties!...
05/17/2007 | 14:05 PM
|
|
2008 Volvo XC90 is ready to be R-designed
Volvo Cars' R-design programme - a sporty factory-fitted option package - is now also available for the Volvo XC90....
01/24/2008 | 17:01 PM
|
|
2007 Volvo XC90 V8 Sport Combines Safety And Sportiness
The words "Volvo" and "sport" are not usually used in the same sentence. However, many fans of the "safe shaped like a...
04/23/2007 | 21:04 PM
|
|
|
2007 Volvo XC90 Sport
Pics, stats and more pics at the link:
...
07/12/2006 | 09:07 AM
|
|
|
Volvo XC90
The XC90 is a fine, well-crafted, and satisfying SUV. Words that I have not heard are used to characterize many SUV's,...
06/26/2006 | 16:06 PM
|
|
|
Mice in my Volvo XC90
always make sure that your volvo floor mats - - is in dirt free in...
09/10/2007 | 20:09 PM
|
|
|
2005 Volvo XC90 V8 Gas Tank Replaced
14 days ago my 2005 XC90 V8 lost power as I accelerated and lost power. It would not start and was towed into the local...
03/26/2007 | 01:03 AM
|
|
|
XC90 recall
Ouch.
The National Highway Traffic Safety Administration is recalling 108,766 Volvo XC90 vehicles from the 2003 to...
05/19/2006 | 17:05 PM
|
|
2007 Volvo XC90 Sport Pictures and Details
Responding to "numerous requests for a sportier XC90," Volvo has released a new model, aptly named Sport. Mechanical changes for this more aggressive XC90 include stiffer anti-roll bars, firmer shock ...
more
|
|
|
|
|
|
|
|
|
|
|
|
|
|