|
|
|
|
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.
|
|
|
|
|
|
|
| |

2005 | Chevrolet Silverado 1500 Gilbert, Arizona | Trucks | $9,499 | White | 96,967 |  | 17.1 mi |

2002 | Chevrolet Silverado 2500 HD Gilbert, Arizona | Trucks | $9,999 | White | 103,425 |  | 17.1 mi |

2004 | Chevrolet Silverado 1500 Gilbert, Arizona | Trucks | $10,999 | Gray | 46,993 |  | 17.1 mi |

2004 | Chevrolet Silverado 1500 Gilbert, Arizona | Trucks | $10,999 | White | 95,632 |  | 17.1 mi |

2003 | Chevrolet Silverado 1500 HD Gilbert, Arizona | Trucks | $11,988 | White | 66,880 |  | 17.1 mi |
|
PROFESSIONAL REVIEW
Ford may have the best-selling pickup in America, but a whole lot of Americans still prefer a Chevrolet. While Dearborn's most recent light-duty pickup has taken on a windswept, aerodynamic look, and Dodge has carved a niche with its vaguely retro, little big-rig theme, Chevrolet has stuck with a more conservative shape, bluff in the nose and square in the shoulders. Chevrolet feels its customers are more comfortable with traditional truck styling. So when the Chevy pickup was totally re-designed, re-engineered and even re-named for 1999, its styling was updated but not radically changed. At the same time, however, Chevrolet caught up with (or even surpassed) the technology and refinement of the more radical looking Ford and Dodge. The Silverado, as Chevy calls its pickups now, is a great achievement, better than the previous "C/K" truck in every respect. It rides better, handles better and stops quicker; it's faster and it's more comfortable. In fact, the Silverado ranks as one of the most luxurious pickups we've ever driven. For 2001, Silverado adds even more power, convenience and durability. All extended-cab models now have two auxiliary rear doors, rather than just one on the curbside. Extended-cab 1500s with four-wheel drive are available with a Pro-Tec fully composite box that's virtually impervious to dents or corrosion. OnStar is available on newer LT models. Finally, the 6.0-liter V8 that is standard in 2500 models has been given aluminum heads and more aggressive valve timing, for a nice, round 300 horsepower at 4400 rpm, and 360 pound-feet of torque at 4000.
|
|
|
|
|
|
|
Long Term Update
'99 Chevrolet Silverado LSThere's a changing of the guard this month, as we usher in the first ...
more
|
|
|
|
|
|
| |