As new- and used-vehicle prices continue to rise, the resale, or residual, value has never been more important to consumers, according to the newly released J.D. Power 2024 U.S. ALG Residual Value Awards. For a fourth consecutive year, Lexus receives the brand award for best premium brand, while Honda receives the award for best mass-market brand for a third consecutive year. Three marques—Honda, Lexus and Toyota—were each recognized with four model segment winners.
“The continued strength of Lexus and Honda underscores an attention to detail and a unique strategy in terms of product planning and management,” said Kristen Lanzavecchia, director of customer success at ALG, the J.D. Power division focused on automotive residual value projections. “Overall, these brands took a measured approach in their freshening of products, trim levels and powertrains, resulting in higher residual performance and better long-term value for their customers.”
The more balanced Lexus and Honda trim-levels strategy is underpinned by entry-level vehicles that offered heightened product value. In terms of powertrains, Honda and Lexus were more conservative in their offerings of fully electric vehicles, providing a wider range of options, including traditional gas-powered, hybrid and plug-in hybrid variants.
For model year 2024, 15 brands receive awards in 28 segments, two more brand recipients than a year ago. The 2024 awards process evaluated 293 models through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand awards requires a manufacturer to have model line entries in at least four vehicle segments. To account for differences across trim levels, model averages are sales weighted based on percentage share relative to the entire model line. For a segment to qualify for an award, at least four brands must be included. This year, the small-car segment car has only three model lines, so it doesn't qualify to have a segment recipient.
Model-Level Residual Value Awards
Honda, Lexus and Toyota each receive four model-level awards. Model award recipients include:
- Honda: Civic, Accord, CR-V and Passport
- Lexus: IS, NX, LX and RX
- Toyota: GR Supra, Tundra, Tacoma and Sienna
- Chevrolet: Corvette and Trax
- Subaru: WRX and Crosstrek
- Land Rover: Discovery and Range Rover Evoque
- Jeep: Wagoneer and Wrangler
- Acura: Integra
- Ford: F-150 Lightning
- GMC: Sierra 3500 HD
- Jaguar: XF
- Kia: Telluride
- Mercedes-Benz: AMG GT 4-door Coupe
- Ram: ProMaster
- Tesla: Model Y
The U.S. ALG Residual Value Awards recognize vehicle models projected to hold the highest percentage of their manufacturer’s suggested retail price following a three-year period of ownership. The value retention is a key variable in the lease cost of a vehicle, underscoring an automaker’s success in the areas of long-term quality and design, as well as overall desirability of automotive brands and their models.
Numerous variables affect the actual residual value of a vehicle over a multiyear lease term. Examples include mileage, quality/reliability, options and feature sets, weather and macroeconomic environment. Since those factors must be taken into account in order to accurately forecast residual values, the more granularity and greater the understanding of the effect of each variable, the better equipped manufacturers and lenders are to be able to maximize profitability. The combination of J.D. Power insights and data with the deep experience of ALG in residual values allows for even more accurate end-of-lease forecasting capabilities.
Originally posted on Auto Dealer Today