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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 4Wheel Drive & Sport Utility Magazine
Wheeling in the Bluegrass StateOn the Trail With the Kentucky Krawlers / By Christian Lee / illustrators: Christian Lee /
Article provided by: 4Wheel Drive & Sport Utility Magazine
Having traveled through Kentucky a number of times over the years to reach popular 'wheeling destinations located in neighboring states, the area often piqued our interest as we scanned the terrain along the highway side and spied potential 'crawling locales on the map. We knew there were trails out there -- we just didn't know where. Upon a chance meeting with a few members of the Kentucky Krawlers Off Road Club last summer at an event in Pennsylvania, we posed the question of where to find such trails in the club's home state. Before we heard an answer, an invitation was extended for us to come see the trails for ourselves. Always eager to explore new areas and add another state to our trail repertoire, we jumped at the opportunity and quickly scheduled a weekend to hit the local trails with the club. Currently, the Kentucky Krawlers hosts member trail rides on a monthly basis (weather permitting) and a number of smaller rides as often as members can get together. The run that we tagged along on, however, was a first of its kind for the new club. Dubbed Droopy's Big Ride after the club's illustrious and out-spoken president, Nathaniel "Droopy" Sears, who organized the event, talk had already emerged of establishing the run as an annual club event. About 25 rigs came out to try the trails, which traveled through a variety of terrain ranging from creek crossings and mud bogs to steep, rocky climbs and narrow, wooded trails. Located within minutes of Kentucky's Natural Bridge State Park, the Torrent Falls Resort [(606) 668-6441, www.torrentfalls.com] served as our home base, providing ample parking, log cabin accommodations, and a home-cooked breakfast each morning. The area also offers a number of campgrounds and other accommodations, in addition to myriad hiking trails and rock-climbing opportunities. For more information about the Kentucky Krawlers Off Road Club and 'wheeling in the Bluegrass State, contact: www.kentuckykrawlers.org. My Backyard Although many of the trails reside within the Natural Bridge State Park, some travel through private property owned by Charles Booth of Beattyville, Kentucky. Charles grew up in the Slade, Kentucky, area during the oil-boom era and offered a wealth of knowledge about the region. In addition to guiding the Kentucky Krawlers through the many trails that lead through his property, Charles also provided a history lesson about the area, which included stops at abandoned oil wells and pump houses, and photographs of bygone boomtowns that once peppered the landscape. Charles also offers his land and trail-guide service to other clubs and groups. For more information, contact: Tour My Backyard Trail Guides, (606) 464-3860. The Trail Keepers Foundation Many members of the Kentucky Krawlers Off Road Club are also active in an organization called the Trail Keepers Foundation. Dedicated to preserving multiuse trails on public and private lands, the Trail Keepers is a non-profit group that works with private land owners and public land managers by assisting in trail maintenance, educating trail users, and controlling illegal activities. The group also raises money through membership, fundraisers, donations, and government grants to go toward keeping trails open and acquiring private and public land to be used for vehicular recreation. The Trail Keepers works closely with UROC/ERoCC, providing and organizing a volunteer force to assist at events and also host annual trail-cleanup activities and member trail rides. For more information about the Trail Keepers Foundation, contact: (513) 469-2412, www.trailkeepers.org.  Providing comic relief throughout the weekend, C.W. "Snapper" Dotson tried his best to beat his '95 Jeep YJ into submission with every obstacle in his path. Snapper's rig sits on varied widths of 38-inch Swampers and uses Dana 60 axles with Ford outers and Chevy inners. |  Breaking the stock front track-bar axle mount on his '99 TJ twice, After Hours Fab Shop owner Ryan Ball of Lexington, Kentucky, performed quick fixes both times and continued on the trail. |  |  Still rolling the factory Goodyear rubber on his '03 Jeep Rubicon, Russell Gindling of Louisville, Kentucky, attacked the trails as if his rig was sitting on 35s with fatty axles. The mighty stocker put on a great show, taking nearly every feat it attempted. |  Larkin Lair of Lexington, Kentucky, took to the trails with ease in his flatfender '94 Jeep YJ. The rig sports 35-inch Goodyear MT/Rs, 1-ton axles, and a custom rollcage by M.I.G. Off Road. |  After pretzeling his factory tie rod worse than we'd ever seen, John "Flash" Combs of Planet Flash Extreme Video Productions "assisted" his fellow Krawlers in repairs that involved straightening the rod, then sleeving it using a Hi-Lift Jack handle. |  John Ryan of Chicago leads the group up the Widow Maker trail located within Natural Bridge State Park. John's '03 rock buggy was built by Roark Fabworks and features a 4.3L Vortec V-6, a turbo 350 transmission, an Atlas II transfer case, and 37-inch Goodyear MT/R tires. |  In his first off-road excursion, Mike Young of Bowling Green, Kentucky, piloted his '88 Suzuki Samurai to great results. As owner of M&L Automotive Specialists, Mike built the capable rig himself performing a rear-to-front spring swap, along with installing a 4.5-inch spring-over kit and missing link shackles. |  Chris Corum, one of the club's founding fathers, was more than eager to twist up his '93 Jeep YJ for the camera. Chris' rig features a BDS suspension system; a 1-inch body lift; 35-inch Goodyear MT/Rs; and a Dana 44 front and Dana 60 rear axle, with Lockrights in both. |  Brent Ward of Richmond, Kentucky, flexes his customized Comanche pickup through the Widow Maker trail. Brent's rig sports an ARB-stuffed Dana 44 up front and a Detroit-equipped Dana 60 in back, while using a 4.3L Vortec V-6 to motivate the 37-inch Goodyear M/TR meats. |  When he's not running his shop, Rock Logic Off Road in Bowling Green, Kentucky, Darren Casada takes to the trails in his well-equipped Jeep YJ. Here Darren slides through an obstacle called Hairpin, barely eking by without a scratch. | |
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