2025 U.S. ALG Residual Value Awards Underscore Importance of Disciplined Approach to Pricing and Incentives

Lexus (Premium) and Honda (Mass Market) Receive Top Brand Awards for Fourth Consecutive Year

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,^SM released today. 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.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241119283900/en/

J.D. Power 2025 U.S. ALG Residual Value Awards (Graphic: Business Wire)

“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. “Additionally, the top brands consistently employ a balanced strategy with regard to trim levels, powertrains and pricing, which helps bolster residual performance and long-term value for consumers who are shopping in a highly competitive market.”

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:

• Lexus: IS, LS, NX, RX and TX
• Toyota: GR Supra, Camry, Land Cruiser and Tundra
• GMC: Sierra 3500 HD, Hummer EV SUT and Hummer EV SUV
• Honda: Civic, Passport and Odyssey
• Subaru: WRX, Crosstrek and Forester
• BMW: 5 Series and X1
• Jeep: Wagoneer and Gladiator
• Acura: Integra
• Cadillac: Escalade
• Chevrolet: Corvette
• Dodge: Charger Daytona
• Hyundai: Kona EV
• Kia: Telluride
• Mercedes-Benz: Sprinter
• Nissan: Kicks
• Tesla: Model 3

The U.S. ALG Residual Value Awards are the automotive industry standard in recognizing 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, as well as the overall desirability of automotive brands and their models.

Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Examples include mileage, quality/reliability, options and feature sets, weather and macroeconomic environment. Since these factors need to 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.

See the online press release at http://www.jdpower.com/pr-id/2024157.

About J.D. Power

J.D. Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. J.D. Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

J.D. Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto-shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: http://www.jdpower.com/business/about-us/press-release-info

View source version on businesswire.com: https://www.businesswire.com/news/home/20241119283900/en/