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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 Four Wheeler Magazine
HKS Nissan Xterra
The Nissan Xterra is one of the most popular SUVs on the market. With aggressive styling, a low price, and a real 4WD chassis...
By Ben Stewart
photographer: Ben Stewart
The Nissan Xterra is one of the most popular SUVs on the market. With aggressive styling, a low price, and a real 4WD chassis with low range, the Xterra has the potential to be a fairly competent rig in the dirt. And that potential was explored when HKS, a leading Japanese engine performance tuner, teamed up with Rancho. HKS performed some mild tweaks to the stock 3.0L V-6 to deliver a bit more power in addition to a nice throaty exhaust note. The HKS Super Mega Flow intake replaces the stock airbox with a free-flowing air filter element, while the HKSuv after-cat exhaust system replaces the stock muffler with a less restrictive unit. These parts combine with the HKS Super Fire Racing Iridium spark plugs and Vitek wires to produce an honest 10 rear-wheel horsepower bump over stock. While not earth-shattering, these mods were noticeable during our seat-of-the-pants testing and helped compensate for the larger 285/75R16 tires. One of the biggest complaints we hear from Nissan owners is the relative lack of aftermarket support when compared with the domestics or Toyota, especially in the suspension category. As if anticipating the Xterra's popularity, Rancho had a prototype 2.50-inch lift available before the vehicle went on sale. This system consists of longer upper control arms to lift the front along with Rancho RS 5000 shocks; the rear uses a replacement add-a-leaf for the spring pack along with matching RS 5000s. This setup is fairly close to the production version that Rancho should have on the market by late fall. Additionally, it should fit 4WD Frontier pickups as well as 2WD Xterras and Frontiers. With a bit of fender trimming up front, HKS was able to fit 285/75R16 Yokohama Geolander M/Ts (33-inch) on 16x8-inch American Racing Python wheels into the fenders. We found, during full steering lock and suspension compression, that these tires rub. Once Rancho comes out with a production version of the system, we surmise 31x10.50R15 or 265/75R16s would be a better choice for maximum tire clearance; however, a 2-inch body lift along with the fender trimming may just be enough for 33s on a 15-inch wheel or the 285s on a 16-inch wheel. While the axle gear ratio remains stock (lower gears are not yet available), the five-speed combined with the motor mods made gearing issues on the street a relative nonissue. The truck seemed to have enough power under most circumstances, with the exception being the longer freeway grades, which required a downshift to Fourth. And though we expected mileage to suffer due to the larger tires, we were rewarded with an average mpg for our 700-mile test of 16.1, nearly identical to a stock Xterra's. When it came time to address the brakes, HKS decided to upgrade the stopping power to match the larger tire size. The combination of the cross-drilled front rotors and high-performance brake pads really made the already sufficient Xterra brakes noticeably more responsive and less prone to fade. External modifications were kept on the mild side with a Smittybilt Outland Sport bumper guard, Smittybilt taillight bars, and a set of PIAA off-road lights. Overall, we are pleased with the modifications to this new Xterra, and, possibly more important, we applaud the aftermarket manufacturers involved with this project for responding so quickly to a vehicle line we think deserves the attention. For any questions regarding the suspension on this vehicle contact Rancho. For any other questions about the HKS engine performance or the HKS Xterra, contact HKS directly. FW
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