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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
Off the beach and into Morocco's interior, much of the country is covered in a blanket of fist-size rocks. It was a struggle to keep the vehicle on course on that Mars-like surface. After turning the rotary dial on the Terrain Response selector knob to the Grass/Gravel/Snow setting, the LR2 easily bounded over the rock. Unlike Terrain Response in pricier Land Rovers, the LR2's has no Rock Crawl mode, a consequence of not having a low-range gear. Instead, the LR2 uses a Haldex computer-controlled center differential, also from Volvo; however, one advantage of Land Rover's version is it has a precharged reservoir of hydraulic fluid that lets the differential instantly shift power to the rear wheels, rather than needing front-wheel speed differential to build pressure to engage the clutches.  On the road, the vehicle is a smooth, quiet, and easy-riding companion. Even over potholes and broken pavement, the off-road suspension absorbs the blows. On winding roads, the LR2 exhibits the steering feel and response more akin to an English sports car than a 4x4, with excellent weight, feel, and feedback. This is in contrast to other premium compact SUVs, even some within the Blue Oval corporate family, which have vague, isolated steering. How Land Rover provides such direct connection to the activities below without inflicting abuse on the driver over broken terrain is a mystery. Handling prowess is backed by electronic- and roll-stability control systems, which should help minimize the consequences in the event of an emergency situation. A slick-shifting six-speed automatic backs the straight-six engine to good effect. The computer controlling shifts is smart enough that the transmission doesn't hunt for gears or downshift too often and manual control is possible. The lower gears are good off-road ratios--remember, there's no low range--and they help launch the LR2 briskly. The company claims a 0-to-60-mph time of 8.4 seconds, which seems about right. With a spread of six gears, the LR2 can enjoy low-speed granny gears and overdrive highway gears that target EPA gas mileage.  But while the off-the-line acceleration is good, passing power at highway speeds is weak. The 230-horsepower engine feels overmatched by the 4255-pound curb weight when zipping past traffic in the 50-to-70 mph range. The Rover isn't slow by any means, but it is sluggish. There is the potential for more power, should the company decide to offer the narrow-angle, Yamaha-supplied, 311-horsepower, 4.4-liter V-8 that's used in the Volvo XC90. But a V-8 version could push $50,000. That price level would position the LR2 against competitors in higher market segments, which could make it a tough sell, appealing as the notion of a V-8 LR2 may be to enthusiasts. Overseas markets get a diesel version, so the U.S. can expect to see one eventually, but not soon. In the cabin, the design and layout feature the planar, technical appearance seen in other Land Rover models, with large, clear instruments and easy-to-use controls for the HVAC and entertainment systems. The touch-screen navigation is easy to use as well, and the Dolby Pro Logic surround-sound audio system features the same hardware admired in Volvo stereos. The two-panel panoramic sunroof is standard on all U.S.-market LR2s, keeping the interior well lit and contributing to the airy feeling and good visibility of the roomy second row. The seats are comfortable and supportive, but lack lumbar adjustment. The LR2 really is the natural extension of Land Rover's revival in recent years, with styling, on-road ride and handling, and off-road talent that mirror that of its larger siblings, but in a smaller, more fuel-efficient and agile package. ... >>next page
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