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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
Truck Trend's Best in Class 2008: Compact Pickup
By Editors of Truck Trend
Winner: Toyota Tacoma Runner-Up: Dodge Dakota
Admittedly, this segment of the auto industry hasn't been getting much love over the last few years. Prices of full-size pickups have been so competitive, salesmen are slotting buyers into bigger, stronger, more capable vehicles, sometimes for the same money. But the Tacoma is still a serious player. Just about the newest (since its redesign) of any compact, the Taco has a strong four-cylinder and a neck-snapping 4.0-liter V6 -- and that doesn't even count the TRD supercharger option (for about $4000) offered at the dealer. It's the sales leader in the segment, and for good reason. However, if you have to have a V8, the only option is the Dakota, so we've slotted that in at number two. | Compact Pickup, 4WD ext cab 4-door | | Vehicle | Chevy/GMC Colorado/Canyon | Dodge Dakota Club Cab | Ford Ranger SuperCab | Isuzu I-290 | | Base price | $21,160/$20,570 | $24,330 | $22,870 | $18,048 (2WD only) | | Wheelbase, in | 126 | 131.3 | 126 | 125.9 | | Base engine | 2.9L DOHC I-4 | 3.7L SOHC V-6 | 4.0L SOHC V-6 | 2.9L DOHC I-4 | | Opt engine | 3.7L I-5 $1000 | 4.7L HO V-8 $1615 | | 3.7L I-5 $4089 | | Horsepower, SAE | 185 (242) | 210 (302) | 207 | 185 (242) | | Torque, SAE | 190 (242) | 235 (329) | 238 | 190 (242) | | Tires | 205/75R15 | 245/75R16 | 225/70R15 | 225/75R15 | | Fuel cap, gal | 19 | 22 | 19.5 | 19.6 | | EPA fuel econ, city/hwy | 16/20 (15/21) | 15/19 (14/19) | 15/19 | 16/22 (15/20) | | Max pass | 5 | 6 | 5 | 5 | | Base curb weight, lb | 3506 | 4296 | 3410 | 3488 | | GVWR, lb | 5300 | 6010 | 5060 | 4600 | | Max payload, lb | 1500 | 1750 | 1600 | 1200 | | Max towing cap, lb | 5500 | 7100 | 5800 | 3500 | | Vehicle | Mazda B-Series Cab Plus | Mitsubishi Raider Extended Cab | Nissan Frontier King Cab | Toyota Tacoma Access Cab | | Base price | $22,680 | $20,535 (4x2 only) | $22,495 | $22,240 | | Wheelbase, in | 126 | 131.3 | 125.9 | 127.2 | | Base engine | 4.0L SOHC V-6 | 3.7L SOHC V-6 | 4.0L DOHC V-6 | 2.7L DOHC I-4 | | Opt engine | | | | 4.0L V-6 $1555 | | Horsepower, SAE | 207 | 210 | 261 | 159 (236) | | Torque, SAE | 238 | 235 | 281 | 180 (266) | | Tires | 225/70R15 | 245/70R16 | 225/70R15 | 205/75R15 | | Fuel cap, gal | 19.5 | 22 | 21.1 | 21 | | EPA fuel econ, city/hwy | 15/19 | 16/22 | 15/19 | 15/19 (15/18) | | Max pass | 5 | 6 | 5 | 5 | | Base curb weight, lb | 3662 | 4310 | 3704 | 3670 | | GVWR, lb | 5020 | 6010 | 5178 | 5350 | | Max payload, lb | 1400 | 1700 | 1300 | 1600 | | Max towing cap, lb | 5600 | 4150 | 6300 | 6500 |
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