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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 Truck Trend Magazine
2008 Mercedes-Benz M-Class "Edition 10" Photo Gallery / By the Manufacturer / Photography by the Manufacturer /
Article provided by: Truck Trend Magazine
Mercedes-Benz is celebrating the 10th birthday of its successful M-Class, the top-selling premium SUV with 850,000 units to its name. To mark the occasion, Mercedes-Benz is bringing out the attractive special "Edition 10" model. The specification includes 20-inch wheels, bi-xenon headlamps and special bodywork highlights in titanium-look as well as dark-tinted tail lights. The sporty, refined interior features two-tone all-leather appointments, sports instruments and stainless steel sports pedals. The "Edition 10" can be ordered from autumn 2007.  The "Edition 10" is a fitting tribute to mark the tenth anniversary of the most successful Mercedes-Benz premium SUV. It recalls the market launch of the M-Class a decade ago, a vehicle now regarded as the pioneer of the premium SUV. Compared with the series-production models, the anniversary edition sporting the special "Edition 10" logos on the wings features even higher-grade appointments and is instantly recognisable from the exterior, courtesy of its eye-catching design and engineering details. Highlights include the 20-inch light-alloy wheels shod with 265/45 R 20 V tyres. Depending on the customer's preference, the light-alloy wheels in gleaming silver provide an interesting contrast to the "Edition 10" design - or blend in harmoniously with if the darkened "chrome shadow" finish is specified. The darkened housings for the bi-xenon headlamps with Active Light System and identically styled fog lamps with integral cornering light function lend the vehicle's front end an even more striking appearance. The package of measures at the front end is rounded off with a special radiator grille and simulated stainless steel underride guard, both in titanium-look. Dark-tinted tail light clusters, a simulated stainless steel underride guard in titanium-look and twin-pipe exhaust system with separate chrome tailpipes adorn the rear of the M-Class "Edition 10". Blue-tinted glass and special chrome trim elements on the door handles, rub strips, radiator grille and rear bumper add the finishing touches to the striking appearance. The special model is available in obsidian black, iridium silver or calcite white. A choice of five "Edition 10" models In addition to the powerful V8 diesel engine with its 700 Nm of torque in the ML 420 CDI 4MATIC, two superlative V6 diesel units are available. The V6 entry-level unit in the ML 280 CDI produces 140 kW / 190 hp, the ML 320 CDI develops 165 kW/224 hp from the same displacement. The ML 350 and the ML 500 with the new 5.5-litre V8 unit bring two petrol versions to the line-up with outputs of 200 kW/272 hp and 285 kW/388 hp respectively.
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