Top Ranking Cars for Long-Term Value: Lexus and Honda Continue to Lead
The auto industry celebrated the release of the J.D. Power 2025 U.S. ALG Residual Value Awards, recognising vehicles expected to retain the highest percentage of their original MSRP over three years.
This year, Honda continues to be the top mass market brand, with models like the Civic, Passport, and Odyssey receiving awards. Notably, Jeep's Wagoneer and Gladiator models, Kia's Telluride, Hyundai's Kona EV, Chevrolet's Corvette, and Cadillac's Escalade also claimed model-level awards.
Lexus led all brands with five model-level awards, followed closely behind by Toyota with four. Dodge's Charger Daytona, BMW's 5 Series and X1, Mercedes-Benz's Sprinter, Nissan's Kicks, Acura's Integra, and Tesla's Model 3 also received recognition.
Subaru's WRX, Crosstrek, and Forester models, as well as Toyota's GR Supra, Camry, Land Cruiser, and Tundra, were among the winners. GMC's Sierra 3500 HD, Hummer EV SUT, and Hummer EV SUV models also received model-level accolades.
The U.S. ALG Residual Value Award focuses on recognising vehicles with superior brand strength, durability, consumer preference, and economic conditions affecting resale prices. The process accounts for differences across trim levels and considers factors such as historical depreciation data, market performance, brand and model reliability, market demand and supply trends, and consumer preferences.
By combining J.D. Power's market insights with ALG's expertise, more precise end-of-lease value projections are achievable. A total of 16 brands received awards across 33 segments for the 2025 model year, one more than last year.
Lexus was named the best premium brand for the fourth year in a row. To qualify for a brand award, manufacturers needed entries in at least four different vehicle segments.
The selection process involved analyzing 311 models based on their used-vehicle performance, brand trajectory, and market competitiveness.
Danny Battaglia, managing director of ALG customer success at J.D. Power, commented that Honda maintained disciplined pricing strategies in 2024, avoiding aggressive MSRP hikes, and Lexus' limited use of incentives had a positive impact on resale values for older models.
Accurately forecasting residual values over a lease term requires understanding each variable's effect on value retention, such as mileage, reliability, options, weather, and the macroeconomic landscape. Factors like brand perception and reputation, model-specific popularity and performance, vehicle condition and maintenance, age and mileage, fuel type and technological factors, market conditions and demand, and accident history and appearance all play a role in determining residual values.
These awards serve as a reliable indicator for consumers, helping them make informed decisions when choosing their next vehicle.
- The finance and transportation sectors are closely linked in relation to the auto industry, as accurate forecasts of residual vehicle values are crucial for both lenders and consumers.
- In the business world, industries such as finance, automotive, and othersurveyed by J.D. Power, like transportation, rely on robust industry analysis and insights to remain competitive and inform their strategic decisions.
