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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
'05 Hot Drives: 2005 KIA Spectra 5
By Neil G. Chirico
Photography by the author
The new Spectra is Kia's volume leader, so it's fitting that this model was chosen to lead the brand into the ultracompetitive sport-compact market --in wagon form, no less.
The Spectra5 adds an aggressive tone with unique front and rear spoilers, side sills, rear valance, and a black mesh grille that come together nicely. Inside, you'll find sport cloth seats, metal-finish trim, metal pedals, and a leather-wrapped steering wheel and shift knob. Power comes from a new 2.0-liter engine that features Kia's first use of variable valve timing. Horsepower increases from 124 to 138, and torque jumps from 119 pound-feet to 136, compared with the previous model's 1.8-liter. The Spectra is the least-expensive car in its class with full-length curtain airbags complementing the standard advanced-front- and seat-mounted side airbags. Four-wheel disc brakes are also included, with four-channel ABS and optional electronic break distribution.  The Spectra5's four-wheel independent suspension boasts increased spring rates, anti-roll- bar diameter, and shock valving, aided by a front strut tower brace. The Spectra sedan gets the 5's sportier specs later this year, including its speed-sensitive power steering and larger wheels. Slalom runs showed that Kia got it right with a composed, balanced feel. Still, the 5 begs for more horsepower, and the shift-linkage is on the rubbery side, but it's way more fun than the average econobox and leaves room in the budget for the hot-rod touch.--Neil Chirico | 2005 Kia Spectra5 | | Base price | $15,500 (est) | | Vehicle layout | Front engine, FWD, 4-door, 5-pass wgn | | Engine type | I-4, iron block, alum head, DOHC, 4 valves/cyl | | Displacement, ci/cc | 120.5 / 1975 | | Max SAE net horsepower | 138 @ 6000 rpm | | Max SAE net torque, lb-ft | 136 @ 4500 rpm | | Transmission | 5-speed manual | | Curb weight, lb | 2880 | | 0-60 mph, sec | 8.8 | | EPA mpg, city/hwy | 25 / 34 | | On sale in U.S. | Currently |
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Kia Spectra 2004, HELP!!!
I own a Kia, Spectra 2004 {It's the 2004.5 edition} VIN: KNAFE121145024398 Year/Make/Model: 2004 KIA NEW...
11/17/2005 | 18:11 PM | ftorres
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DETROIT, Michigan (AP) -- The Dodge Neon, Ford Focus and Volkswagen New Beetle are among the small cars that got the...
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Kia Spectra
For most entry-level buyers, the news here is that the Spectra stands tire-to-tire with its long-established competition, and th
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