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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 Look: 2006 Saab 9-5
Old Faithful
Photography by Brian Vance
Although 2006 will mark the eighth year Saab has been building its flagship 9-5 sedan and SportCombi wagon on the same platform, Saab says it sees no reason to fix what isn't broken. So, rather than bringing us a more competitive, all-new 9-5 platform to combat the latest and greatest from BMW, Audi, and Mercedes-Benz, the quirky Swedish carmaker has opted to give the 9-5 a notable rework and a significant price slashing. The 9-5's new front-end styling features projector-style headlamps set in a unique matte-black housing. Thicker anti-roll bars, better shock damping, a wider rear track, and a recalibrated steering box contribute to better on-road driving dynamics and a more compliant ride. Furthermore, handling prowess can be stepped up another notch or two by opting for the Sport Package, which provides stiffer springs and more aggressive shock tuning. 2006 Saab 9-5
| Base price | $34,820 | | Drivetrain | Front engine, FWD | | Engine | 2.3L/260-hp/258 lb-ft turbo DOHC I-4 | | Transmissions | 5-speed manual; 5-speed auto | | CURB WEIGHT | 3500-3750 (mfr) | | Wheelbase | 106.4 in | | Length x Width x Height | 190.4 x 70.5 x 57.2 in | | EPA city/hwy fuel econ | 19-20/28-30 mpg |
| Gone are the three different states of tune on the 2.3-liter turbo four-cylinder from last year's model. A 260-horsepower version is all that's remaining in the lineup, giving the car plenty of power to frolic easily alongside most of its V-6 competitors. Saab has also simplified the line by merging popular items from the Linear, Arc, and Aero models of previous years into a single offering for 2006. The most noteworthy aspect of this 9-5 upgrade--and the one that may well lure a good number of buyers--is the considerable amount of cost Saab has trimmed off the bottom line. New 9-5 models sell for over $3000 less than last year's comparably equipped models. Even though the 9-5's new nose and tail fail to hide its long-in-the tooth styling and the doors and tumblehome remain unchanged (and are showing their wrinkles), value pricing such as this makes the 9-5 a viable (albeit dated) European sedan/wagon option. Of course, if a slightly modified, old-looking Saab isn't what you had in mind, the company promises an all-new 9-5 before the decade is out.
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2003 Saab 9-5
Firstly, I checked average retail prices on a number of sites and a 2003 9-5 in "average" condition without any fancy...
06/07/2007 | 04:06 AM | enciscojuarbez
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1997 318iS - Good Car?
I was looking at a clean 1997 318iS 5-speed for sale with 87K miles. I am not familiar with BMW's, I've had Saabs. ...
10/27/2006 | 16:10 PM | Bobby C
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First Look: 2006 Saab 9-5
Although 2006 will mark the eighth year Saab has been building its flagship 9-5 sedan and SportCombi wagon on the same platform,
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