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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 Volvo XC90 Photo Gallery
By the Manufacturer
Photography by the Manufacturer
The XC90 V8 Sport is designed for those who desire a more athletic variant of Volvo's flagship luxury SUV. Introduced as a midyear addition to the lineup last year, the limited production XC90 V8 Sport benefits from a dynamic chassis setting, standard 19-inch alloy wheels with low-profile tires, unique appearance, interior specification upgrades and sport-tuned suspension. The XC90 V8 Sport shares its high-tech 4.4-liter 32-valve engine with the XC90 V8. Fitted with continuously variable intake and exhaust valve timing (CVVT), this naturally aspirated V8 develops 311 horsepower and 325 lb.-ft. of torque. Both V8 models feature standard all-wheel drive with Instant TractionTM. This traction enhancing system employs computer-controlled Haldex AWD that instantaneously delivers up to 50 percent more torque to the rear axle only when needed, such as during takeoff. A six-speed "Geartronic" automatic transmission is standard on all XC90s.  Also introduced last year was an all-new 3.2-liter in-line six-cylinder engine for the XC90 3.2. This naturally aspirated powerplant replaced the 2.5T, utilizing the latest technology to maintain the same exterior dimension and fuel consumption as a five-cylinder engine. The result is 235 horsepower, an increase of 27 hp versus the 2.5T, and an identical 236 lb.-ft. of torque. It achieves performance and economy thanks to Variable Cam Timing (VCT) and Cam Profile Switching (CPS). With CPS, the intake valves can be lifted to different heights depending on engine revs and load - a lower lift for economical driving and a higher one for more power.  For 2008, the XC90 V8 gains even more upscale cues with standard Sapeli wood inlays, shift knob and steering wheel, bright headlamp, taillight and C-pillar trim and fender extensions. A new Executive Package includes 19-inch "Galateia" alloy wheels, premium soft leather seating surfaces and premium floormats. All models receive a standard auto dimming rearview mirror. A high performance sound system comes with all XC90s. For increased listening pleasure, V8 models can be equipped with a Dynaudio premium sound system. This includes a 6-CD changer, auxiliary input, MP3 capability, Dolby Pro-Logic II Surround Sound, 650-watt amplifier and 12 Dynaudio speakers. A dual screen rear seat entertainment system is also available to help preserve family harmony on the road. And to help guide the driver to the target destination, the Volvo navigation system with DVD map data and remote control is another popular option. Adhering to Volvo's core value of safety, all XC90 models are equipped with Roll Stability Control (RSC), Dynamic Stability and Traction Control (DSTC), Side impact Protection System (SIPS) with side airbags and Inflatable Curtains for all three rows. Volvo's state-of-the-art Blind Spot Information System (BLIS) is available on all XC90s. Active Bi-Xenon headlamps with automatic level control, standard on the V8 Sport, can be specified for all other models. With this system, the headlight beams swivel up to 15 degrees for enhanced nighttime visibility while cornering.
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