J.D. Power awards 2025 US residual value winners
22 November 2024
The J.D. Power 2025 US ALG Residual Value Awards have recognised outstanding value retention. Mass-market and premium brand leaders were crowned alongside 31 model category winners.
With new and used-vehicle prices still elevated, budget-conscious US shoppers are seeking vehicles that will provide long-term value. This highlights the importance of residual value performance and recognising outstanding value retention.
Lexus leads brand awards
For a fourth consecutive year, Lexus and Honda received the award for best premium brand and mass market brand respectively. Lexus received five model-level awards, followed by Toyota with four.
‘Honda stayed disciplined with pricing in 2024, avoiding the aggressive manufacturer-suggested retail price 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,’ he added.
Awards consider 311 models
For model year 2025, a total of 16 different brands received awards in 33 segments. This was 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. Model averages are sales-weighted based on percentage share relative to the entire model line. This accounts for differences across trim levels. At least four different brands must be included for a segment to qualify for an award.
Lexus received five model-level awards, the most of any brand. The next most-celebrated marque was Toyota with four. GMC, Honda and Subaru each received three model-level awards.
Measure of success
The awards recognise models projected to hold the highest percentage of their manufacturer’s suggested retail price after three years of ownership.
Value retention is a key variable in the lease cost of a vehicle. It underscores success in terms of long-term quality and design, as well as the desirability of models and brands.
Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Examples include mileage, quality, reliability, options, features, weather and macroeconomic factors.
These factors need to be taken into account to accurately forecast residual values. So, greater granularity and understanding of each variable can better equip manufacturers and lenders to maximise profitability.
In October this year, the Autovista Group Residual Value Awards celebrated eight European value retention champions. This was the result of data-driven analysis from across 17 regional markets.
