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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 Four Wheeler Magazine
2005 Ford F-150 - To Dye ForMark Dye's Cool Arizona Four-Wheel Independent F-150 / By Ken Brubaker / photographer: Ken Brubaker /
Article provided by: Four Wheeler Magazine
In the chrome-saturated environment of the SEMA show in Vegas, many people didn't give this understated black F-150 a second glance. However, truck lovers with a keen technical eye were left speechless when they eyeballed this Ford. The reason? It harbors a multitude of cool modifications including a prerun-ready independent rear suspension (IRS). FST Motorsports engineer Torrey Porter was inspired to build this F-150 for his boss, Mark Dye, after watching (ahem) rental IRS-equipped Ford Expedition SUVs being used as chase vehicles at off-road races. Impressed by their handling and ability to absorb abuse, he worked with FST Motorsports fabricator Brian Mead to create this very unusual IRS-equipped machine. Clearly, this F-150 is all clean and pretty in these photos, but the team at FST says that won't last long because the vehicle will immediately be put to use as a chase vehicle for their off-road racing team.  The exterior of the 5.4L-powered Ford is tastefully customized with a variety of functional items. A pair of Trailer Products fiberglass fenders, a Reflexxions steel hood, and a pair of custom electric side steps starts off the list. FST Motorsports created the cool front prerunner bar/winch mount/skidplate combo as well as the rear bumper. Both ends of the F-150 sport a Superwinch S9000 winch and KC off-road lights. Finally, the left front fender sports custom graphics by Arizona Design. |  Because the framerail measurements of the '05 F-150 are identical to the framerail measurements of the '05 Expedition, the guys at FST were able to cut the rear of the solid-axle suspension frame from the F-150 and replace it with the IRS frame and suspension from the Expedition. Once in place, the guys at FST designed a custom 4-inch suspension lift using Bilstein struts. They also upgraded the rear trailing links with custom FST 7075 aircraft-aluminum trailing links that feature QA1 spherical rod ends. FST says that the IRS now generates more than 10 inches of suspension travel. |  A Fabtech 6-inch IFS coilover suspension kit was modified by the guys at FST Motorsports to produce 4 inches of lift, while retaining the full range of suspension travel. They also beefed up the steering with custom FST 7075 aircraft-aluminum-grade tie rods that feature QA1 spherical rod ends. The front differential was regeared to 4.56:1 by West Coast Differentials to handle the larger-diameter 35x12.50-17 Goodyear CORR-spec tires. The wheels are factory-spec, but they've been beefed for abuse with Champion bead locks. To enhance their durability, they've been coated with Goodrich Technologies' tough, new PermaStar finish. |  Blasting across the desert requires spare tires, extra fuel, and recovery equipment. Oh, and cold drinks. Naturally, it's mandatory that all of these items be securely fastened to the truck, so the guys at FST designed secure, quick-release mounts for all of the bed-mounted items. The back of their truck contains a Hi-Lift jack, a cooler, a pair of CORR-spec spare tires, two 10-gallon fuel cans, and a floor jack. |  Inside the truck is a custom FST-fabbed four-point rollcage. One of its unique features is that it was designed to be unobtrusive and almost invisible to passengers. The interior also features five Icon TV LCD video monitors as well as a significant amount of Car Toyz-installed MTX audio equipment. Finally, the seats feature custom suede inlays by Interstate Custom Interiors. | |
The Dirt General Owner: Mark Dye, Phoenix, Arizona Vehicle/Model: '05 Ford F-150 Estimated Value: $75,000
Engine Type: 5.4L OHV V-8 Aspiration: Fuel injection (a Whipple supercharger is on its way), custom FST 3.5-inch after-cat exhaust Output, hp and torque: N/A
Drivetrain Transmission: 4R75E Transfer case: Two-speed
Suspension Front: IFS, modified 6-inch Fabtech coilover kit producing 4 inches of lift Rear: Ford Expedition IRS, custom FST 4-inch-lift kit with Bilstein replacement struts and FSTaluminum trailing links with QA1 spherical rod ends.
Axles/Differentials Front: Stock differential, FST aluminum tie rods with QA1 spherical rod ends Rear: Stock Ford Expeditiondifferential Ring-and-pinion: 4.56:1, West Coast Differentials
Wheels/Tires Wheels: 17x8 Ford wheels with Champion bead locks and Goodrich Technologies PermaStar finish Tires: 35x12.50-17 Goodyear CORR-spec
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