Honda and Lexus Among Top Auto Brands With Highest Residual Value Projections According To JD Power 2022 US ALG Residual Value Awards
“Accurate forecasting of residual values in the automotive industry is a key factor in valuing an estimated $ 225 billion rental vehicle portfolio in the United States,” said Eric Lyman, vice president of ALG. “The makes and models of vehicles that rise to the top demonstrate that they perform well in all criteria of the rewards program, including superior design and manufacturer quality. “
Residual value prices recognize which vehicle models are expected to hold the highest percentage of their manufacturer’s suggested retail price after three years of ownership. Retention of value is one of the key variables in the cost of leasing a vehicle, as it determines quality and long-term design. This value is also used to determine resale values.
There are several variables that affect the true value of a vehicle over a multi-year lease term, including mileage, quality / reliability, options and feature sets, weather, and the macro environment.
Of the 284 models considered for the 2022 model year, Honda, Hyundai and Lexus were found to be the brands with the most retained value cars. The 2022 Honda Civic is expected to have the highest resale value of any compact car in three years. The Honda Odyssey 2022 and Honda Passport 2022 are the most likely to retain their value among minivans and mid-size double-row utility vehicles, respectively.
On the premium side, the 2022 Audi A6 Allroad, 2022 Land Rover Range Rover Velar, and 2022 Mercedes-Benz Metris are all expected to retain high value.
The 2022 Hyundai Kona EV and Tesla Model Y is best for mass market electric vehicle customers by basing their purchasing decisions on residual value. According to the JD Power report, the Hyundai Kona and Hyundai Accent 2022 will also retain their quality.
The Mercedes-Benz AMG GT 4-Door beat the long-standing, top-rated Lexus LS as a winner in the Premium Executive category.
The new Ford Bronco tops the list for the highest projected residual off-road utility vehicle price, but the Jeep Wrangler and Toyota 4Runner – former segment winners – are also still highly rated.
For a brand to be eligible for a branded award, a manufacturer must have model entries in at least four different segments that account for differences in trim levels, model averages are weighted based on share in percentage in relation to the whole model range. Lexus ranks first among premium brands despite only one award-winning model, the Lexus NX 2022.
“Lexus’ success demonstrates impressive and industry-leading continuity in residual value across its lineup,” said Lyman. “It’s like a decathlete who only wins one of 10 individual events but scores enough points in each of them to get on the podium.”