| IntelliChoice 5-Year Ownership Costs |
What is a BOVY?
IntelliChoice analyzes more than 1,700 models to determine the automotive market's Best Overall Values.
IntelliChoice aggregates and analyzes data from auto manufacturers, the U.S. government, and third-party data resources to determine the actual costs of ownership of new vehicles over a five-year period, and assigns a value rating to nearly 2,000 mainstream vehicles sold in America each year. This insightful value rating factors the accumulated ownership costs of depreciation, maintenance, repairs, fuel, fees, financing, and insurance to identify the true standout models in each class.
Vehicles with just low ownership costs do not necessarily make good values. IntelliChoice's Best Overall Value of the Year (BOVY) awards recognize those vehicles whose total cost of ownership is significantly lower than expected relative to its peer models, thus assisting consumers in making Smart purchase decisions. These vehicles are not just excellent values; they are the top-ranked models in their respective classes. While there are many factors to consider when buying a new vehicle, the annual BOVY winner list provides a quick reference to distinguish those vehicles on the market that promise the best return on investment.
This year, IntelliChoice identified 33 winning models for segment and class accolades. Eight new classes were added including Non-Luxury and Luxury Convertible, Luxury Utility, Midsize and Luxury Crossover, Cargo Van and Sport Sedan/Wagon. Representing the popular segments within the car, SUV, truck, and van categories, these numerous classes ensure that you will find an award relevant to your new-vehicle search.
For 2007, Overall Value Ratings were determined by taking the individual statistical/economic performance of each trim within assigned model line groups (for example, Honda Accord V6 Sedan) and generating an average of that figure. These ‘averages’ are then ranked and rated against the other model lines within the vehicle’s class.
The primary reason for this change is that it allows ratings to be assigned in a way that better reflects the data as well as the manner in which consumers are evaluating cars they are considering purchasing. Though trim ratings can and do vary, the statistical difference between trims is not always sufficient to accurately determine a rating. Rather than force ratings by trim regardless of the variances, we are considering the model line data as a better indicator of overall value. We will continue to determine the ownership costs at the more granular level for each trim so that consumers can see which vehicles cost more or less than expected over five years based on our projections.
This year’s winners list had several newcomers including the Lexus IS, Hummer H3 and Toyota’s new Yaris. Toyota stayed strong with 11 awards—though it was tied with General Motors which was represented by Chevrolet and Hummer.
Though fewer hybrids took top honors this year, collectively they continue to prove themselves Excellent in Overall Value, including the Prius, Civic, Accord, Camry, Escape and Highlander models. Hybrids are available in an ever-increasing number of classes such as Full-Size Utility, Luxury and Sport Sedan/Wagon.
While some vehicles remain consistent performers year after year, some shifts in ownership costs, value ratings and subsequently the BOVYs are to be expected. This may be due to in part to customary changes in the assumptions we use to calculate a given cost area (for example, the financing rate), changes in vehicle or manufacturer data (variances in pricing or warranty coverage), a widespread cost fluctuation over time (as with fuel or insurance), or a significant difference in the vehicle competitor set within a given class.
Depreciation is still the most significant area of ownership costs, and as a rule, vehicles with very good retained value tend to do better in overall value. Hybrid models are an excellent example of this as their higher initial cost is may be offset by excellent retained value over time, still making them great purchases in the long run. Due to the inevitable flux in fuel costs, the inflation rate of fuel over five years was increased to 9.82%.
The BOVY list for 2007 can be viewed at http://www.intellichoice.com/best_values/bovy (new winners are posted each year in early February). To review specific cost areas, and make trim-to trim comparisons, simply click through on the IntelliChoice 5-Year Ownership Cost link on any vehicle report.
If a model performed particularly well in one or more individual ownership cost areas, we indicate it on the Overview page of each vehicle report. These vehicles are either the Best or Among the Best (top 10%) in their respective classes.
It should be mentioned that due to the transient nature of manufacturer rebates, such short-term incentives are not included in the annual calculations for Best Overall Values. However, IntelliChoice repeats this analysis on a monthly basis to include recently released models, and to account for updated fuel costs, pricing changes, and nationally available rebate programs. The vehicles that stand out on a monthly basis are dubbed "Best Deals of the Month." A complete listing of the annual Best Overall Value award winners and Best Deals of the Month can be found at http://www.intellichoice.com/best_deals/bestDeals.
The Best Overall Value of the Year awards identify THE vehicles that promise the best return on investment within their classes.
