Honda, Lexus Top Residual Value Awards

By Staff Writer November 19, 2021

The ALG/J.D. Power 2022 U.S. Residual Value Awards named Honda and Lexus as winners in the mass market and premium segments, respectively.

“Accurately forecasting residual values in the auto industry is a key factor in assessing an estimated $225 billion lease portfolio of vehicles in the United States,” said Eric Lyman, vice president of ALG. “The brands and vehicle models that rise to the top demonstrate that they score well across the award program’s criteria, including manufacturers’ superior design and quality.”

The 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. This 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. It is also a vital component to vehicle shoppers as it helps forecast a vehicle’s resale value once they sell or trade in the vehicle for a new one.

For model-year 2022, 19 different brands have won awards in 29 segments. The award process consists of evaluating 284 models through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have model entries in at least four different segments. To account for differences across trim levels, model averages are weighted based on percentage share relative to the entire model line.

In addition to the mass market brand level award, Honda also takes home three model-level awards. Lexus ranks highest among premium brands despite only one segment-winning model. "The achievement of Lexus speaks to an impressive, industry-leading continuity of residual value across its entire lineup," Lyman said. "It's like a decathlete who doesn't have to win any of the individual 10 events but scores enough points in each of them to stand atop the podium."

Model-Level Residual Value Awards

Honda and Hyundai shared the most model-level awards, with three each. They are followed by a diverse list of manufacturers winning in two categories: Audi, Kia, Land Rover, Mercedes-Benz, Subaru and Toyota. 

  • Honda: Civic, Passport and Odyssey
  • Hyundai:  Accent, Kona and Kona EV
  • Audi: A6 All-road and Q3
  • Kia: K5 and Telluride
  • Land Rover: Range Rover Velar and Discovery
  • Mercedes-Benz: AMG GT 4-Door and Metris
  • Subaru:  WRX and Forrester
  • Toyota: Tacoma and Tundra

Noteworthy for 2022, the Mercedes-Benz AMG GT 4-Door tops longtime segment leader Lexus LS in the Premium Executive segment, while the new Ford Bronco beats out perennial winners Jeep Wrangler and Toyota 4Runner for top honors in the Off-Road Utility segment. Also of note are the increasingly popular electric vehicle winners, which are highlighted by the Kona EV in the Mass Market Electric segment and the Tesla Model Y in the Premium Electric segment.

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Last modified on Monday, 29 November 2021 15:22