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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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Article From Off-Road Magazine
2007 Toyota FJ Cruiser - The FJ Adventure
Part IV: Moab, Cajon Pass, And A Change Of Tires
By Kevin Blumer
photographer: Kevin Blumer, Collette Blumer
Off-Road's FJ has diligently served as a daily driver, hauler, and photo shoot transportation. We've also flogged the FJ in the dirt, and it's now the proud bearer of some "off-road pinstriping," which no self-respecting off-road truck should be without. This was the third time I've attended the Moab Easter Jeep Safari, but the first time I've truly enjoyed the event. While past years definitely held some bright spots in my memory banks, I wasn't in the pilot's seat on any of the Easter Jeep Safari trails until '07. Vive la difference! Off-Road's West Coast Division (as opposed to our Rocky Mountain Division) followed the painted stripes of the Hell's Revenge Trail, ventured into Arches National Park, and sampled Fins 'n' Things before heading homeward. Neither Hell's Revenge nor Fins 'n' Things is at the top of the Moab hardcore trail list, yet both routes demand a competent vehicle and a nonrookie driver. Hell's Revenge in particular has several sections that could spell big-time disaster (think sheer drop-offs and steep slopes) if not negotiated properly. Closer to home, the opportunity was taken to explore some local terrain in search of photo shoot locales. At the same time, the FJ got a new set of tires wrapped around its Walker Evans wheels. There's only been enough time for a first impression of the Nitto Dune Grappler, but this visually striking tire gets a thumbs-up right off the bat in the performance department. Read on.  If you're sick of reading about Moab year after year, here's the antidote: Put down the magazine and take a road trip. Moab really is worth experiencing firsthand. Perhaps the best part of Moab is that Dana 60s, 40-inch meats, and mechanical carnage aren't required to have fun: A variety of trails awaits. The entrance to Arches National Park is 3 miles outside of Moab, so there's no good excuse not to check it out. Arches is a nonstop visual feast. |  Longtime desert racer Kreg Donahoe isn't slowing down by visiting Moab, he's expanding his horizons. The dynamics of high-speed vehicle control provide a smooth segue into the world of Low range and lockers. "The purpose of suspension is to not upset the vehicle," Kreg advises. "That's true whether you're going fast or slow." Team Donahoe used Moab as a test bed for its new JK Wrangler suspension. Off-Road's Smurf-blue FJ Cruiser joined the Donahoe JK Wrangler and the Donahoe Class 3 FJ Cruiser for a shakedown run on Hell's Revenge. Kreg's four-door JK runs on 37-inch Nitto Mud Grapplers mounted to KMC beadlock wheels. |  The trail to Tower Arch is bumpy and scenic, but it's actually not all that technical. The best part is that it's an uncrowded trail, even during Easter Jeep Safari. The best parts of Arches National Park can be sampled in a single day, but we'll venture a guess that, just like us, you won't be satisfied with one short visit either. |  This section of Hell's Revenge is downright tame, but it's a great spot to test your approach and departure angles. All-Pro Off-Road's front and rear bumpers hug the FJ's extremities. |  Hell's Revenge gives a true test of your "Moab bump" skills. The square-edged ledges require just enough momentum to pop your wheels over the edge, but they'll mangle vehicular internals if you slam into them at speed. I'm straining to see over the hood here, and it's not just because I'm short: The 'Cruiser is tough to see out of. |  Delicate Arch adorns Utah's license plates, and it's worth the 1.5-mile hike to see the real thing. The late afternoon sun hits Delicate Arch with a spectacular flare - pure, 100-percent-natural eye candy. Scores of photographers line up along the edge of the "bowl" that Delicate Arch sits on. If you want to put your hands on the arch or have your photo taken in front of it, make sure to get it done quickly. There's no shortage of photo-Nazis who don't want you "ruining" their pictures. |
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