Honda, Lexus Win Brand Awards in J.D. Power Residual Value Awards

ALG, the division of J.D. Power in Troy that measures automotive residual value, announced the recipients of the J.D. Power 2022 U.S. ALG Residual Value Awards, with Honda and Lexus being named brand award winners in the mass market and premium segments, respectively.
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Lexus LS
Lexus and Honda won brand awards in the J.D. Power 2022 U.S. ALG Residual Value Awards in the premium and mass market segments respectively. // Courtesy of Lexus

ALG, the division of J.D. Power in Troy that measures automotive residual value, announced the recipients of the J.D. Power 2022 U.S. ALG Residual Value Awards, with Honda and Lexus being named brand award 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,” says 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.”

For model-level residual value awards, Honda and Hyundai share the most with three each. They are followed by Audi, Kia, Land Rover, Mercedes-Benz, Subaru, and Toyota, each winning in two categories:

  • Honda: Civic, Passport and Odyssey
  • Hyundai: Accent, Kona and Kona EV
  • Audi: A6 Allroad 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

The Mercedes-Benz AMG GT 4-Door tops long-time 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.

The awards recognize vehicle models projected to hold the highest percentage of their manufacturer’s suggested retail price following a three-year period of ownership. 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.

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.

Lexus ranks highest among premium brands while only having one segment-winning model, which is a rare feat.

“The achievement of Lexus speaks to an impressive, industry-leading continuity of residual value across its entire lineup,” says Lyman. “It’s like a decathlete who wins only one of the 10 individual events but scores enough points in each of them to stand atop the podium.”

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