Hybrids, Toyohonda score well in IntelliChoice.com car awards

[FISH]

Staff and agencies
08 February, 2006

http://www.heraldnewsdaily.com/stori...-00138214.html

11 minutes ago

CHICAGO - Hybrid cars won IntelliChoice.com‘s 2006 "Best Overall Value of the Year" awards in three of eight categories, the online automotive cost ownership and value analysis firm said on Wednesday.

The awards map a combination of factors including a vehicle‘s price, fuel efficiency, maintenance costs and resale value, taking data from auto manufacturers, the U.S. government and third-party sources to determine the cost of ownership over a five-year period.

Although relatively new to the automotive scene, hybrid cars are attracting more attention due to rising fuel costs, with sales growing rapidly.

The Best Car Value for cars under $23,000 went to the hybrid Toyota (7203.T) Prius, while both SUV categories -- under $28,000 and over $28,000 -- went to the Ford (NYSE:F - news) Escape Hybrid two-wheel drive and Toyota Highlander Hybrid two-wheel drive, respectively.

"These cars are proving to be a great economic bonus and not just in terms of fuel efficiency," said IntelliChoice publisher James Bell.

"They are also low on maintenance costs and because there is such high demand for them they have high residual value when it comes to resale," Bell said.

In last year‘s awards one hybrid car -- the Toyota Prius -- won an overall value award.

IntelliChoice.com identified 29 winning models by segment and class, plus eight overall category winners. The eight overall category winners are:

Best Car Value Over $23,000 - Lexus LS 430

Best SUV Value Over $28,000 - Toyota Highlander Hybrid 2WD

Best Truck Value Under $26,000 - Toyota Tundra Regular Cab 2WD

Best Truck Value Over $26,000 - Toyota Tundra Extended Cab 4WD

Best Van Value Over $25,000 - Honda Odyssey EX

The 29 winning models by segment and class can be found on http://www.intellichoice.com.

[cincygoblue]

Well, I don't know if IntelliChoice is biased toward the imports, but they seem to be. They also don't seem to be too IntelliGent.

They seem to be saying that paying a premium for the Hybrid versions of these cars is worth the cost for the fuel savings you are getting, otherwise, why wouldn't the conventional Ford Escape and Toyota Highlander have beaten out the Hybrid ones? Maybe because of resale, which they mention in their statement, but is there really going to be any higher residual value for a hybrid than it's conventional counterpart? Would you want to buy a 4 year old hybrid, knowing that the batteries and drivetrain all have 4 years of wear and tear on them? Buying a new Hybrid almost (well not quite even almost) makes sense. But how would resale be that great on these things, considering in 4 years, there will probably be a SynergyDrive version 3.0 which gets even better milage or is in an even newer Highlander?

I also don't understand the "low-maintenance" statement, considering there is a potential for more to go wrong in a hybrid versus the conventional. Maybe I'm confused, but it seems like they are making up arguments for purchasing a hybrid.

EDIT: Well, I think they're biased. The ONLY segment won buy a domestic, other than segments where there is not import competition, was the Escape. The Domestics won Fullsize 3/4 and 1 Ton Pickups, Fullsize Vans, and Sportscars. The only way they couldn't be considered biased is if the Resale is the largest factor, and it may be. However, why wouldn't they just publish a best resale chart? Oh yeah, because then they wouldn't get THEIR survey out. But I still disagree on the resale values of hybrids 3-5 years from now.

[ralphh]

Well for the Toyota's, the Hybrid systems are warranted for 8 years.

[Geotpf]

"The awards map a combination of factors including a vehicle‘s price, fuel efficiency, maintenance costs and resale value, taking data from auto manufacturers, the U.S. government and third-party sources to determine the cost of ownership over a five-year period."

Of course the hybrids and Toyota and Honda won a lot. Toyota and Honda feature high resale value, especially on hybrids (used Priuses have been known to sell at or close to list price), high reliability scores (IE, low maintenace costs-also, hybrids use thier regular brakes less and therefore have fewer brake changes), and high gas mileage. The only factor that works against them is higher list price, and that is tempered because Toyotas and Honda typically sell closer to list than the domestics do, so if you compare list prices, the difference is less than in the real world after a five grand rebate for the domestic.

[cfch3399]

Something tells me that when Intellichoice staff go shopping for a car, Toyota waives the cost of the car.
Intellichoice, a subsidiary entirely owned by Toyota?

[Geotpf]

Originally Posted by cfch3399

Something tells me that when Intellichoice staff go shopping for a car, Toyota waives the cost of the car.
Intellichoice, a subsidiary entirely owned by Toyota?

Look, these things test three things:

1. Resale value (as compared to sticker price, not counting incentives such as rebates).
2. Maintenance costs (based on reliability scores from "thrid-party scources", almost certainly Consumer Reports and JD Power, since nobody else does this type of scores).
3. Fuel efficency.

Of course Toyota won almost every category. Those are thier strengths.

[Pancheetoh]

Originally Posted by cfch3399

Something tells me that when Intellichoice staff go shopping for a car, Toyota waives the cost of the car.
Intellichoice, a subsidiary entirely owned by Toyota?

No. It points at something that the imports do extremelly well: resale values. No absurdly inflated MSRPs, no outrageous discounts and rebates, minimal sales to rentals, and care and nurturing of model names -i.e. the Camry or Accord names will never be abandoned and they will be continuously updated... a used Camry is worth a lot just because it is a Camry-). It is hard to convey a message of stability/reliability when your own brands have life expentancies shorter than the lenght of a car loan.

In the meantime, Ford and Chevy gauge loyal customers when a model comes out (who are the only ones who pay anything remotely close to MSRP - look at Chevy hardcore fanatics buying overpriced Tahoes last month), then drop prices precipitously with absurd rebates, while dumping almost 1/3 of production to rental fleets -who will dump them into the used market for pennies on the dollar after a few months-. Needless to say many models are never updated and simply forgotten. Discontinued model names are not worth a whole lot in the used car market (care to buy a used Aurora or a Cavalier?).

Most consumers wonder how long the revived Impala or Malibu will be around. They will most likely go the same way the Lumina or the Chevelle: straight into oblivion.

PS. Actually some "genius" will be paid millions to revive the Lumina in the future only to forget about it a few years later (without ever being revised or upgarded)

[Infiniti Z350]

Originally Posted by cincygoblue

EDIT: Well, I think they're biased. The ONLY segment won buy a domestic, other than segments where there is not import competition, was the Escape. The Domestics won Fullsize 3/4 and 1 Ton Pickups, Fullsize Vans, and Sportscars.

There are import sportscars and the Corvette won that.

[SSrevolution]

I guess paying for a car it takes up to 7 years to break even on is a good value.

[Perfectionist]

Originally Posted by SSrevolution

I guess paying for a car it takes up to 7 years to break even on is a good value.

Considering I keep my cars for upwards of 15 years, I'd say it's OK.

[Whirling_Dervish]

Originally Posted by Pancheetoh

No. It points at something that the imports do extremelly well: resale values. No absurdly inflated MSRPs, no outrageous discounts and rebates, minimal sales to rentals, and care and nurturing of model names -i.e. the Camry or Accord names will never be abandoned and they will be continuously updated... a used Camry is worth a lot just because it is a Camry-). It is hard to convey a message of stability/reliability when your own brands have life expentancies shorter than the lenght of a car loan.

In the meantime, Ford and Chevy gauge loyal customers when a model comes out (who are the only ones who pay anything remotely close to MSRP - look at Chevy hardcore fanatics buying overpriced Tahoes last month), then drop prices precipitously with absurd rebates, while dumping almost 1/3 of production to rental fleets -who will dump them into the used market for pennies on the dollar after a few months-. Needless to say many models are never updated and simply forgotten. Discontinued model names are not worth a whole lot in the used car market (care to buy a used Aurora or a Cavalier?).

Most consumers wonder how long the revived Impala or Malibu will be around. They will most likely go the same way the Lumina or the Chevelle: straight into oblivion.

PS. Actually some "genius" will be paid millions to revive the Lumina in the future only to forget about it a few years later (without ever being revised or upgarded)

Great description of how GM destroys the value of their cars and trucks. Kinda refutes import bias in this award.

[Whirling_Dervish]

Originally Posted by Geotpf

Look, these things test three things:

1. Resale value (as compared to sticker price, not counting incentives such as rebates).
2. Maintenance costs (based on reliability scores from "thrid-party scources", almost certainly Consumer Reports and JD Power, since nobody else does this type of scores).
3. Fuel efficency.

Of course Toyota won almost every category. Those are thier strengths.

Nice to see I'm not alone in this conclusion.

[ChevroletTough]

intellichoice = meatheads

[LAMRONH]

Originally Posted by Pancheetoh

No. It points at something that the imports do extremelly well: resale values. No absurdly inflated MSRPs, no outrageous discounts and rebates, minimal sales to rentals, and care and nurturing of model names -i.e. the Camry or Accord names will never be abandoned and they will be continuously updated... a used Camry is worth a lot just because it is a Camry-). It is hard to convey a message of stability/reliability when your own brands have life expentancies shorter than the lenght of a car loan.

In the meantime, Ford and Chevy gauge loyal customers when a model comes out (who are the only ones who pay anything remotely close to MSRP - look at Chevy hardcore fanatics buying overpriced Tahoes last month), then drop prices precipitously with absurd rebates, while dumping almost 1/3 of production to rental fleets -who will dump them into the used market for pennies on the dollar after a few months-. Needless to say many models are never updated and simply forgotten. Discontinued model names are not worth a whole lot in the used car market (care to buy a used Aurora or a Cavalier?).

Most consumers wonder how long the revived Impala or Malibu will be around. They will most likely go the same way the Lumina or the Chevelle: straight into oblivion.

PS. Actually some "genius" will be paid millions to revive the Lumina in the future only to forget about it a few years later (without ever being revised or upgarded)

In paragraph #2, do you mean Ford and Chevy GOUGE loyal customers... ?
You make several valid points. I maintain that much of the domestics' market and labor problems are karmic in nature: They have not operated with integrity or with their customers' or workers' best interests in mind, they have been short sighted, and top mismanagement is golden parachute-oriented vs. long-term oriented.

It is hard to convey a message of stability/reliability when your own brands have life expentancies shorter than the lenght of a car loan. Not to mention renewal cycles considerably LONGER than the car loan period.

As for IntelliChoice: I used to buy the IntelliChoice hard copy books, but I found their resale projections to often be something akin to Bill Clinton accusing someone else of lying: A joke that only True Believers would swallow hook, line, and sinker.

[Mr. Burns]

oh right, another biased one to add to the pile. *sarcasm*


kudos to honda and toyota for designing and building some intelligent vehicles.