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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: 2008 Dodge Magnum SRT8Tail wagon: Drifting the restyled Dodge Magnum SRT8 at VIR / By Frank Markus /
Article provided by: Motor Trend Magazine
Dodge is toughening up the look of its butch Magnum for 2008 with more menacing front-end styling and upgraded interior materials. Little has changed in the powertrain and chassis departments, but the SRT gang decided to throw a little track-day party to launch the hot-rod 6.1-liter, 425-horse Magnum SRT8. Its new hood scoop is functional, and air inlets in the fascia improve cooling to the front brakes. The fascia design also is credited with reducing aerodynamic lift by a small margin. Front Bilstein monotube shocks and rear Nivomat self-leveling shocks each get minor revisions in tuning, as do those on the SRT8 versions of its Charger and Chrysler 300C platform mates, which boast Bilsteins at all four corners this year (previously, they all had the Nivomats in back).  Inside, the Magnum gets agate-color accent stitching, carbon-fiber leather-trim door handles, an improved grip-enhancing carbon-fiber leather-trim steering wheel, and LED lighting in the cupholders and door-map pockets. The coolest new feature: a reconfigurable display in the instrument cluster can now track the vehicle's performance, measuring 0-to-60-mph time, eighth- or quarter-mile acceleration, braking distance from any speed, and lateral and longitudinal acceleration. The latter can be viewed graphically in real time via a friction circle, or the peak values can be expressed numerically, say at the end of a lap. This feature is shared with the Charger and 300C SRT8s, but not with the Grand Cherokee SRT8.  All four of these Hemi fire-breathers were available for hot-lapping at Virginia International Raceway, and back-to-back sessions reveal subtle differences in personality among the LX cars. The Chrysler's damping rates are about 25 percent softer, and in the few places on the track where the suspension gets compressed, this difference can be felt. The Charger and Magnum are tuned similarly, but the extra weight and different shocks in back make it easier to slide the rear end out on the Magnum when the ESP stability control is switched off. When ESP is on and these cars are driven on the proper racing line, the system never cuts power, it only trims wheel speeds slightly to stay on course. They return impressive performance, given their size and fitment with all-season Eagle RS-A tires (Eagle F1 Supercar tires are a no-cost option, which would doubtless further reduce the amount of ESP intervention).  The craziest vehicle to drive at VIR was the big boxy Grand Cherokee, which wins the award for most dramatic departure from the donor car. Its all-wheel drive puts the power down perfectly, and its ESP calibration allows gentle drifting in the faster corners. All of the cars feature an Autostick shifter, none gets the steering-wheel shift buttons we've come to expect. It's unfortunate to have to take your hands off the wheel to shift while setting up for a corner --especially in the more upright Jeep. We also take issue with the amount of self-shifting these trannies provide when you think you're in full manual mode. All SRT8s provide deep reserves of braking from their huge red Brembo calipers. These are immensely entertaining vehicles to hurl around a race track, though they'd probably just feel immense if one were dicing with other cars for position. But if you want hairy acceleration, a burly exhaust rumble, and a dash of flash, the Magnum and its SRT8 sibs are hard to beat for the price ($38,993-$44,223, if current guzzler-tax estimates hold). | 2008 Dodge Magnum SRT-8 | | Base price | $40,743 | | Vehicle layout | Front engine, RWD, 4-pass, 4-door, wagon | | Engine | 6.1L/425-hp/420-lb-ft OHV 16-valve V-8 | | Transmission | 5-speed automatic | | Curb weight | 4250 lb (mfr) | | Wheelbase | 120.0 in | | Length x width x height | 197.7 x 74.1 x 57.9 in | | 0-60 mph | 5.1 sec (MT est) | | EPA city/hwy fuel econ | 12 / 18mpg (est) | | CO2 emissions | 1.37 lb/mile (est) | | On sale in U.S. | Currently |
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