Used-vehicle values have been all over the map this year as new-vehicle shortages and other issues have plagued the market. Many new-car models carry artificially inflated price tags, making it hard to determine which vehicles hold their value the best. JD Power has that information and just released its 2023 ALG Residual Value Awards to rank the models that best retain their value over time. ALG, a division of JD Power, is recognized as the industry benchmark of automotive residual value projections.
Beyond resale value, residual values impact the price you pay to lease a vehicle. JD Power notes that several factors affect residual value, including mileage, quality and reliability, options, and even the local weather. In conducting its research, JD Power/ALG looks at vehicle values after a three-year ownership period, a typical lease term in today’s industry.
Honda receives the best mass-market brand award for a second consecutive year. Kia, meanwhile, earns the most individual model awards and is most improved in the mass-market category, climbing three rank positions. On the premium side, Lexus wins the brand award for a third consecutive year, while Porsche is the most improved brand, moving up four spots from last year.
Kia’s performance is a strong indication that it has made the leap from a bargain brand to a trusted mainstream automaker. “The marketplace is acknowledging that Kia has a very strong product lineup in terms of design, quality, and residual values. Kia has become a force to be reckoned with,” said Eric Lyman, vice president at ALG.
Overall, 13 auto brands receive awards across 29 categories, which JD Power says is a decrease of six brands from last year. The company evaluated 291 models and analyzed used-vehicle performance, competitiveness with similar products, and an outlook on the brand. To be eligible for an award, an automaker must have a model in at least four market segments. JD Power weights model averages based on their share of the entire model line to account for differences between individual trims.
Notable models on the list of award winners include the new Acura Integra, Mercedes AMG GT 4-door, Porsche 911, and the Toyota GR Supra. Interestingly, the GMC Hummer EV Pickup made the list at a time when it’s nearly impossible to find or buy one for less than 200 percent of MSRP. Land Rover also performed well, with the Discovery, Range Rover Evoque, and Range Rover Velar making the list.
Korean automaker Kia receives the most model-level trophies in the 2023 ALG Residual Value Awards, with five. Honda and Toyota each receive four model-level awards. Model award recipients include:
JD Power is the source of information for this article. It was accurate on November 17, 2022, but it may have changed since that date.
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