J.D. Power recently completed its acquisition of ALG from TrueCar, Inc. ALG is now part of the J.D. Power Valuation Services group. As of 2021, the ALG Canadian Residual Value Awards are now the J.D. Power Canada ALG Residual Value Awards.
J.D. Power Canada ALG Residual Value Awards
The J.D. Power Canada ALG Residual Value Awards recognize automakers' outstanding achievements for vehicles that are forecasted by ALG’s proprietary model to hold the highest percentage of their Manufacturer’s Suggested Retail Price (MSRP) after a three-year period for Premium vehicles and four-year period for Mainstream vehicles, vans, trucks, and electric vehicles.
A residual value is the forecasted amount a vehicle will be worth at a certain point over the next six years and is primarily used to calculate the value of the vehicle at the end of a lease agreement. Residual values are a key indicator of an automaker’s success and help determine the overall desirability of automotive brands and their vehicles.
Award Eligibility and Methodology
2021 model year vehicles available in Canada that have been included in the most recent ALG Edition are eligible to earn a J.D. Power Canada ALG Residual Value Award. Award winners are determined through careful analysis of used vehicle performance of prior year models, brand outlook and product competitiveness. The forecast model uses a wide variety of macro, industry, segment and vehicle factors to arrive at the most accurate prediction of a vehicle’s future value.
Eligibility for an overall brand award in either the Mainstream or Premium category requires a brand to have vehicles in at least four unique model level segments. Overall brand awards are based on the weighted average score for all vehicles sold by the winning brand.
Vehicle segments are based on our proprietary automotive segmentation, which accounts for information such as vehicle size, transaction price, and cross-shop information.
Awards are presented across the following brand and model level segments: