Why should automotive brands promote their commitment to delivering vehicles with strong residual values?
Resale Drives Consideration
The resale value a vehicle carries is consistently cited as one of the most important elements vehicle shoppers consider when purchasing a new vehicle.*
Competitive Differentiation
In a competitive automotive market, highlighting strong residual values can showcase a brand's focus on providing owners with long-term value and can set it apart from competitors.*
Command Consideration
Highlighting strong residual value can appeal to and command the attention of budget-conscious consumers looking to avoid significant depreciation costs when they decide to sell or trade in their cars.*
* JD Power 2023 ALG Residual Value AwardsSM
JD Power U.S. ALG Residual Value Awards
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.
A residual value is the projected wholesale value of a vehicle at a future date, typically the end of a lease. It’s a key driver of lease cost and reflects an automaker’s long-term quality, design, and brand desirability.
Actual residuals over a multi-year lease depend on factors like mileage, reliability, options, features, and the broader economy. Accurate forecasts require granular data and a clear view of each variable’s impact.
By combining JD Power insights and data with ALG’s residual expertise, manufacturers and lenders can achieve more precise end-of-lease forecasts and improve profitability.
Active licensees can purchase a wide array of merchandise including trophies, lapel pins, key chains, apparel and more, to commemorate their achievement.
JD Power Awards provide the highest-performing companies within our benchmarking studies the chance to let consumers know that they put their customers first. As the trusted symbol of the Voice of the Customer, our awards help companies increase consumer consideration and ensure that the top-ranking brands stand out in the crowd.
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