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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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2005 Nissan Xterra Review
All-new Xterra is a catalyst for adventure.
Driving Impressions
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Testing an adventure vehicle demands something more than just putting around town, especially when you have a 4x4. Rising to the occasion, we ended up on a weekend adventure trip, driving to the Grand Canyon for a little river rafting, stopping in Sedona and Williams, Arizona, along the way. Much of the route took us across lonely interstate highways, where we noticed the new Xterra cruises far more easily, and more quietly, than the previous generation. The automatic transmission, a five-speed overdrive, wins points around town. For commuting or driving in traffic, we would prefer it. But on the open road, the six-speed manual is a sweet gearbox, with an overdrive gear so tall the engine barely murmurs at cruising speeds on the sweeping, largely unpatrolled highways leading to Williams, the gateway to the Grand Canyon. In addition, the six-speed's first four ratios are lower than the automatic, so we could really feel all the torque when we shifted for ourselves. The 4.0-liter V6 has very good, if not outstanding, response to throttle. High-speed passing with the automatic transmission does create some noise and vibration as the engine revs toward redline, but only at speeds well above the normal cruising levels. No such issues with the manual, which is strikingly refined, yet sporty. We're told the six-speed is a version of the same transmission used on the Nissan 350 Z, and we would recommend it for those who like to drive.
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Regardless of the power train, the Xterra is easy to keep in lane on the highway, probably due to the combination of rack-and-pinion steering and a speed-sensitive steering ratio. At one point, we drove five hours without stopping, a positive indication when it comes to seat comfort and overall driving effort. To check the audio system, we jammed a CD into the Rockford Fosgate. We're not audiophiles, but we like our music. We can testify that the 300-watt system is quite a bit bigger, cleaner, and more accurate than what we normally listen to. Getting good sound in an SUV interior can be difficult, since there are many hard surfaces combined with soft shapes to reflect and muffle sound. In this case, 8 speakers with subwoofer carry the day. Even though the Xterra's utility quotient is the main design priority, effort has been made to reduce wind noise, and the results are tangible. Large mirrors, angled grilles, big roof racks, open side steps-these are features that invariably create wind noise, and at speeds over 75 mph, noise does begin to become a factor. Yet below those speeds, the Xterra remains nicely calm and quiet. The roof rack, a prime source of wind whistle, has been redesigned with oval beams, which slice through the air more cleanly than round or square tubing. Engine noise, likewise, is kept to a minimum through techniques such as a silent timing chain, microfinished surfaces and Teflon-coated pistons. On smaller roads, the Xterra retains a handy feeling, driving with the ease of a large family sedan. If you push it, the long-travel chassis will show some roll from side to side, and the tires will complain, but in ordinary driving, the Xterra feels consistently composed and, for a truck, highly refined. The 4-liter engine has some guts in the midrange, and we noticed that acceleration coming out of a corner is a strong point. A memorable stretch came when as we approached the launch point for our raft trip. Leaving the highway for a graded dirt road, we continued downward for miles. It had rained in the desert the night before, and as we approached the river, water trickled across the road, accumulating in the middle and flowing down the path. Eventually the trickle became a torrent, then a series of streams, and we found ourselves driving down a canyon path of loose gravel with rivulets of water running around us on all sides. The crunch of gravel gave way to the sound of water and rock in the wheelwells. We were forced to move carefully from side to side to find the firmest ground, crossing running water gingerly, for about a quarter mile. The electronic traction control kicked in and out, but we never got stuck. Eventually, we turned a corner, crested a little hill and arrived at our destination, none the worse for the moisture. The Off-Road Grade is intended for situations such as this, because out-of-the-way places are often subject to changes in weather and circumstance. All it takes is a little rain, or snow, or falling rock, to create a challenge. In this case, the Off-Road Grade Xterra, with its traction control, all-terrain tires and locking differential, not only got us in, it got out again, which is the whole point with a vehicle like this. We think this is probably Nissan's most capable off-highway tool, a vehicle that can handle most challenges without the embarrassment of pushing, shoveling, or tow straps. With the six-speed manual, the low-range crawl ratio is 40-to-one, better than most Jeeps. Unlike many SUVs, the Xterra actually has a fully boxed frame and a solid rear axle. next page |
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