Overall Best Vehicle Values

• July
• 31

6:09 am cars

If you think the “cost” of your vehicle is the price of your vehicle, you’ve got a big lesson to learn. The vehicle that costs the least to buy isn’t always the best value in its segment, because other costs in addition to purchase price are important in determining the overall value equation. So as you consider the purchase of a new vehicle, to get the most for your money, you should look at several factors in addition to price in determining what vehicle might be the best one for you.

If you don’t have an advanced degree in cost analysis, you will be glad to learn that IntelliChoice, a Primedia company that earns its keep poring over ownership and leasing cost data, has done much of that work for you. IntelliChoice’s value calculation accounts for the price of a vehicle and the accumulated costs of depreciation, maintenance, repairs, fuel, fees, financing, and insurance. The value measurement analyzes data compiled on more than 1,000 car, truck, and SUV models and projects what these costs will be for the upcoming five-year ownership cycle.

This all sounds mighty scientific, but a couple of caveats are in order: first, Intellichoice’s value calculations are based on the aforementioned five-year ownership cycle. If you plan to keep your car, say, eight years, the value calculation can be significantly skewed. A second caveat: over the course of five years the predominant “cost” for most vehicles is depreciation, and Intellichoice estimates depreciation since it can’t see into the future to obtain actual used-vehicle price transaction data for cars that are currently new. (If they could, that skill alone would make them a pot of money.) Because of this, if Intellichoice depreciation estimates prove to be wrong, the company’s value estimates will be wrong as well.