For the second year in a row, Toyota and Lexus are the top make-level performing brands in their respective segments, according to the J.D. Power 2023 Canada ALG Residual Value Awards, which were announced today.
“Lexus continues its solid, consistent performance and has a reputation for long term durability and quality which has always had a positive contribution to residual values,” said Eric Lyman, vice president of ALG. “Historically, Toyota was the producer of fuel-efficient passenger cars and has now migrated into what are utility vehicles and trucks. Toyota’s success during the past 10 years in those categories has been
consistent year after year, and it’s reflected in its residual values, as well.”
ALG is the division of J.D. Power known as “the industry benchmark of automotive residual value projections”. The J.D. Power Canada ALG Residual Value Awards are the automotive leasing industry standard when it comes to recognizing the vehicle segments that are projected to hold the highest percentage of the manufacturer’s suggested retail price (MSRP) after a four-year period for mass market vehicles, and after a three-year period for premium vehicles.
The 2023 J.D. Power Canada ALG Residual Value Awards aim to be a vital consideration for vehicle shoppers when assessing the total cost of ownership for a particular vehicle whether the vehicle is financed, leased or purchased with cash. According to J.D. Power “This year’s recipients have shown strong forecasted value in their competitive segments in the Canadian market for the mass market and premium segments”.
For 2023, 15 different brands won awards in 29 segments. The award process consists of evaluating 272 model lines 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.
Model-Level Residual Value Awards
Toyota has the most model-level awards with seven. GMC and Lexus each have three awards. The brands with multiple awards are:
- Toyota: Camry, Venza, Highlander, 4Runner, Tundra, Corolla Cross and Sienna
- GMC: Yukon, Canyon and Savana
- Lexus: IS, LX and UX
- Cadillac: CT5, LYRIQ
- Chevrolet: Corvette, Silverado 2500 HD
- Kia: Rio, EV6
- Mercedes-Benz: A-Class, AMG GT 4-Door
Noteworthy is the Cadillac LYRIQ winning the premium EV segment award, in its inaugural year, against Mercedes-Benz. Nissan’s all-new Z also wins an award in the premium compact sport car segment.
Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Examples include mileage, quality/reliability, options and feature sets and macroeconomic environment. The combination of J.D. Power insights and data with the deep experience of ALG in residual values allows for even more accurate end-of-lease forecasting capabilities.
