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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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Article From Truck Trend Magazine
Truck Trends' Best In Class 2007 Best Power Puller
We've been doing our Best In Class Awards for six years now and based on the positive feedback, it has a lot of good buying information. Where else can you get such a comprehensive set of specifications all in one place, where you can instantly compare those specs, head-to-head, with their direct competitors? We've tapped into our vast driving experience with each one of these vehicles and made our selection based on the most significant criteria. Admittedly, we tend to lean toward bigger engines, larger towing capacities, and stronger bang-for-the-buck readings, so we don't expect our priorities to be an identical match to yours. That's why (in the past) we've listed all available chart information--fuel economy, passenger seating, and optional engine costs--on every vehicle. Of course, getting that information often changes as fast as the information itself. All pricing information presented here is from the most current edition of the 2007 Edition of the "Kelley Blue Book New Car Price Manual." Best Power Puller F-450 Super Duty This year, federal regulations have made it law that low-sulfur fuel is to be used throughout all 50 states. As a consequence, all three big diesel pickup trucks have hundreds (if not thousands) of dollars of extra sensors, electronics, particulate filters, high-tech after-burners, and custom-designed exhaust systems to accommodate the new emission standards. Big power pullers are going to be a bit more expensive for a while, or at least until new technology is discovered. In the meantime, for those who need the biggest fully loaded truck available, a $50,000 4x4 crew-cab dualie won't be that unusual. Even though it's the most expensive of the group, the new F-450 Super Duty wins the category hands-down"it's rated to tow a fifth-wheel trailer weighing 24,000 pounds and the new Power Stroke diesel engine has twin turbos. That's the king in our book. | Best Power Puller - Topline Crew Cab 4x4 Diesel Dualie | | Vehicle | Chevrolet Silverado HD 3500/GMC Sierra HD 3500 | Dodge Ram HD 3500 Mega Cab | Ford F-450 Super Duty | | Base price | $44,095/$49,440 | $49,495 | $51,280 | | Wheelbase, in | 167 | 160.3 | 172 | | Engine | 6.6L OHV 32-valve turbo, intercooled V-8 | 6.7L OHV 24-valve turbo, intercooled I-6 | 6.4L OHV 32-valve twin-turbo, intercooled V-8 | | Transmission | 6-speed Allison 1000 auto | 6-speed manual/6-speed auto ($1095) | 5-speed auto | | Horsepower, SAE @ rpm | 360 @ 3200 | 350 @ 3000 (est) | 350 @ 3000 | | Torque, SAE @ rpm | 660 @ 1600 | 650 @ 1500 | 650 @ 3000 | | Airbags | Dual | Dual | Dual | | Brakes | Disc/disc 4WABS | Disc/disc 4WABS | Disc/disc 4WABS | | Tires | 265/70R17 | 235/80R17 | 225/70R19.5 | | Spare tire, $ | $405 | $195 | $295 | | Fuel capacity, gal | 34 | 34 | 34 | | Max pass | 6 | 6 | 5 | | Base curb weight, lb | 6421 | 6348 | 6523 | | GVWR, lb | 11,400 | 10,000 | 14,500 | | Max payload, lb | 4029 | 4000 | 7500 | | Max towing (fifth wheel), lb | 16,000 | 16,350 | 18,500 |
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