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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
Long-Term Intro: 2007 GMC Yukon SLT
Capable, luxurious, and thirsty
By Ron Kiino
Photography by Julia LaPalme
A year ago, Angelinos weren't thrilled to see throngs of Texans running around L.A. after the University of Texas Longhorns upset our hometown USC Trojans in the Rose Bowl Game. But with time comes healing, and we at Motor Trend have moved on. So much so that we recently welcomed to our long-term fleet a hulking corn-fed brute hailing from--you guessed it--Texas.  Assembled at GM's Arlington, Texas, factory, our GMC Yukon SLT not only feeds on good-ol' gasoline, but also E85 ethanol fuel, which is made from U.S.-grown bio-material such as corn. Fitment of an LMG version of GM's Vortec 5.3-liter, 320-horsepower V-8 allows for this dual-fuel capability as well as a snazzy FlexFuel badge to be affixed to the tailgate. This badge has prompted queries from curious bystanders, to which we've replied, "FlexFuel means it can run on ethanol, but the closest E85 station is in San Diego." Suffice it to say, all the Yukon's 3681 miles have been accumulated via gas. And as most of those miles have been accrued in city driving, our average fuel economy has yet to eclipse 12.0 mpg, despite EPA figures of 15/21. The good news is that the Yukon's fuel economy should improve once we subject it to more road trips, during which its Active Fuel Management system--a technology that shuts down four cylinders during light-throttle applications--can be more active. Our Yukon SLT carried a base price of $39,240, but it came well equipped for the rigorous duties of a full-size sport/utility. Standard features included a new control-arm front suspension with coil-over shocks (the archaic torsion bars are out), stability control, four-wheel disc brakes with ABS, and a 49-percent-stiffer structure. Fitted with such options as a remote vehicle starter, 12-way power front seats, power-release second-row seats, a power tailgate, and a rearview camera system, the Yukon has proved a satisfying long-termer. Staffers have been impressed with the GMC's host of amenities as well as its serene road manners and high levels of luxury. As editor-in-chief MacKenzie notes, "The Yukon immediately impresses with the classy ambience of the interior--which looks pretty well put together, too--and its smoothness and silence on the road." Moreover, the Yukon offers plenty of pep, evidenced by respectable test numbers--0 to 60 in 8.5 seconds and the quarter mile in 16.3 at 85.7 mph. With nearly 4000 miles on the odometer, our Yukon--a key member of GM's new GMT900 family--has gobbled cargo and people with aplomb. Stay tuned to see if it continues to gobble gas with the same ease. | 2007 GMC Yukon SLT | | Base price | $39,240 | | Price as tested | $48,735 | | Vehicle layout | Front engine, 4WD, 7-pass, 4-door SUV | | Engine | 5.3L/320-hp/ 340 lb-ft OHV 16-valve V-8 | | Transmission | 4-speed automatic | | Curb weight (dist f/r) | 5769 lb (52/48%) | | Wheelbase | 116.0 in | | Length x width x height | 202.0 x 79.0 x 77.0 in | | 0-60 mph | 8.5 sec | | Quarter mile | 16.3 sec @ 85.7 mph | | Braking, 60-0 mph | 137 ft | | Lateral acceleration | 0.69 g | | EPA city/hwy econ | 15/21 mpg | | Total mileage | 3681 miles | | Average test mpg | 11.9 mpg | | Unresolved problem areas | None | From the Logbook "Interior takes abuse but cleans up nicely--so far, no interior weaknesses." -- Mark Williams |
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