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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: 2009 Ford Escape
By Todd Lassa
Four-dollar-per-gallon gasoline may be wreaking havoc on sales of the Mustang, F-150 and Explorer, but it comes along at a convenient moment for the facelifted 2009 Escape and Mariner. Six-speed automatics replace four-speed automatics, there's a new lower front chin spoiler below the redesigned front fascia and rear tire spoilers for better aerodynamics, and new low rolling resistance 16-inch Michelin tires across the board. The old 153-horsepower 2.3-liter four has been bored and stroked (among other upgrades) to a 171-horsepower 2.5-liter, and the 3.0-liter V-6 gets new cylinder heads, injectors, intake and exhaust cams, manifolds and pistons, and a compression ratio bump from 10.0:1 to 10.3:1.  So now the V-6 actually has a V-6-like horsepower number, up 40 ponies to 240. Both engines get intelligent variable valve timing. The hybrid gets the new 2.5-liter, too, and for '09 runs on the Atkinson cycle. It has a new engine processor and a new powertrain damping system, to cut vibrations and feedback.Ford anticipates EPA mileage will be up 1-mpg city, 1-mpg highway, whether you get the four, the V-6 or the hybrid. The biggest change, though, is that you no longer have to buy one of the bottom-feeder trim levels to get four-cylinder fuel economy. The 2.5 is available all the way up to the Escape Limited and Mercury Mariner Premier versions. Small engines are big now, even with buyers who can afford more. Ford even removed the "V-6" badge from so-equipped '09 models as if it has become a badge of extravagance and disregard for the environment and global oil supply. That makes the extra 18 horses for the four-banger the most important improvement. The 171-horse Escape isn't a rocket. It's simply an adequate engine in a smallish crossover, the right vehicle for those who like to ride higher than in cars, carry a few things and manage 21/27 mpg (FWD) or 20/25 (AWD), assuming the EPA backs up Ford on its estimates. Ford says about 45 percent of buyers choose four-cylinder models, virtually unchanged since the first Escape launched as a '01 model. Now that the new four is close to the fours in the Honda CR-V and Toyota RAV4 for refinement, and packs in five extra horses, the "take rate" ought to zoom well past the V-6.  Added refinement comes with the new four, producing better engine noise. It's still a raspy sounding four under full-throttle acceleration, but it's fairly smooth under most conditions. The six-speed automatic (a five-speed manual remains standard with the four) smoothens the power delivery, and there's none of the hunting for gears of the old 2.3-liter/four-speed auto combo. Acceleration matches the '08's 200-horsepower V-6/four-speed auto combination, at 10.4 seconds for 0-60 mph, Ford says. The extra 40 horses in the V-6 made necessary by the more powerful new four cuts 0-60 mph times by 1.7 seconds, according to the manufacturer. Ford also has revised the suspension, including the addition of a rear anti-roll bar for all models, making the "2009 Ford Escape, Mercury Mariner more fun to drive." Well, no. It's not fun to drive. It's a crossover sport/utility vehicle. But it's more refined and quieter at speed. And by the way, Ford claims the lower-front air dam saves 3/4-mpg at 70 mph. The low rolling resistance tires makes the steering feel lighter at low speeds. Suspension is stable and reasonably comfortable over crusty roads. As for "fun to drive," you don't want to take any CUV this tall too deeply into the curves, anyway. This one is no exception.
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