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Value Rating
Below Average
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
Quick Test: 2008 Dodge Avenger SXTAvenging what, exactly? / By Ron Kiino /
Article provided by: Motor Trend Magazine
The Dodge Avenger SXT's Monroney states that it's the "official passenger car of NASCAR." Is that a good thing or a bad thing? We're not really sure. Regardless, with its signature bold and boxy Dodge styling, the Avenger does wear a retro look reminiscent of stock cars. Sad to say, that's about as racy as the Avenger gets. According to technical director Frank Markus, "The Dodge's quasi-aggressive styling and nomenclature and its racy white-face gauges write a sportiness check the drivetrain and chassis can't cash." Run this Dodge around Darlington, and you'll find it delivers 0 to 60 in 9.3 sec, the quarter mile in 17.0 at 83.3 mph, 60 to 0 braking in 142 ft, and lateral acceleration of 0.74 g. At least the Avenger isn't the "official sport sedan of NASCAR," because that would be unfortunate. So what gives? Why is the Dodge so lackluster? Well its 2.4L four-cylinder is a bit crude and, at 173 hp, doesn't exactly humble other four-bangers, some of which produce 200 hp. While most of its rivals use five- or six-speed automatics, the Dodge stays true to its trusty ol' four-speed, which pushes it off the line with about as much vigor as a maimed turtle. Rear disc brakes? Nah, let's stick with less-effective drums. Not that it's all bad with the Dodge. It does offer a standard "Chill Zone" compartment in the dash that keeps beverages cold as well as a MyGIG multimedia system that features a touch-screen display and a hard-disc drive. Oh, and that "wheezy engine" and "archaic tranny" come with a lifetime powertrain warranty, all for a thrifty as-tested price of $21,500. Other than that, there's not much to like with this official passenger of NASCAR. Senior editor Ed Loh puts it this way: "Overall this is the essence of basic transportation; not remotely fun to drive and not all that practical or feature rich. There's absolutely no reason to buy this car." Well, unless you must have chilled sodas for the drive to the short track. ... >>next page
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