With new- and used-vehicle prices still elevated, budget-conscious shoppers are seeking vehicles that will provide long-term value, highlighting the importance of the J.D. Power 2025 U.S. ALG Residual Value Awards released this week. For a fourth consecutive year, Lexus and Honda receive the award for best premium brand and mass market brand, respectively. Lexus receives the most model-level awards with five, followed by Toyota with four.
“Honda stayed disciplined with pricing in 2024, avoiding the aggressive manufacturer’s suggested retail price (MSRP) increases that diminished affordability at other brands, while Lexus’ restraint with incentives paid dividends, as incentives have a direct negative effect on the resale values of older models,” said Danny Battaglia, managing director of ALG customer success at J.D. Power.
For model year 2025, 16 different brands receive awards in 33 segments, which is one more brand recipient than a year ago. The 2025 award process consisted of evaluating 311 models through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have model line entries in at least four different 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 different brands must be included.
Model-Level Residual Value Awards
Lexus receives the most model-level awards with five, followed by Toyota with four. GMC, Honda and Subaru each receive three model-level awards. Model award recipients include: