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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
First Drive: 2006 Ford Fusion
One complaint: Although the Aisin Warner tranny offers six ratios, the driver can choose only between "D" and "L." In low mode, the transmission tends to stay in the lowest possible gear and will perform downshifts at inopportune times, like in the middle of a corner. Left in "drive," the transmission is overeager to select the highest possible gear at all times, bringing unwanted upshifts when lifting mid-corner, followed by multiple downshifts seconds later when powering out of a turn. A more extensive gate is needed, or maybe a "sport" mode or adaptive shift logic that senses enthusiastic driving and holds lower gears longer. Reprogramming the software could improve driveability significantly, and we hope Ford is already at work on a fix. Another oversight: While Ford offers world-class passive safety gear, including optional curtain and side-impact airbags, stability control isn't available on any Fusion. Pull off the twisties and onto an Interstate, and the Fusion proves as pleasing to the flustered passengers as it's been to the ardent driver. Extensive tuning in the acoustic wind tunnel has hushed wind noise to below the level of the (also quite tolerable) tire sizzle and road noise. Ford claims best-in-class interior sound levels, and passengers can indeed converse using their "inside voice" comfortably at 80 mph. Package all the above in an aggressive and distinctive wrapper, and the Fusion begins to look like a tempting midsize sedan. Hang window-sticker pricing on it that starts below that of a Hyundai Sonata ($17,995) and maintains a price gap of a thousand dollars or more relative to the Japanese blue-chippers all the way up the price ladder, and Ford would seem to have earned itself a taste-test from even the most discerning midsize-sedan connoisseurs. Bon appétit! | 2006 Ford Fusion SEL V-6 | | Base price | $22,360 | | Vehicle layout | Front engine, FWD, 5-pass, 4-door sedan | | Engine | 3.0 L/221 hp/205 lb-ft DOHC 24-valve V-6 | | Transmission | 6-speed automatic | | Curb weight | 3300 lb (mfr) | | Wheelbase | 107.4 in | | Length x Width x Height | 190.2 x 72.2 x 55.8 in | | 0-60 mph | 8.5 sec (mfr est) | | EPA city/hwy fuel econ | 21 / 29 mpg | | On sale in U.S. | Currently |
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