Lexus, Honda lead in residual value in luxury and mass-market segments

Residual value measures how long a car is likely to retain its value, which is a big factor in determining the cost of a multi-year lease. Image (c) ConsumerAffairs

J.D. Power survey finds the two brands best retain their value over time

With car prices still high, shoppers are looking for vehicles that offer long-term value. The 2025 J.D. Power U.S. ALG Residual Value Awards highlight brands and models expected to retain their value best over time.

For the fourth year in a row, Lexus was named the top premium brand, while Honda was recognized as the top mass-market brand. Lexus won five model-level awards, and Toyota followed with four.

Honda kept prices steady in 2024, while Lexus avoided large incentives, helping their models hold value. The awards evaluated 311 models based on used-vehicle performance, brand reputation, and product competitiveness.

Top award winners include:

  • Lexus: IS, LS, NX, RX, TX
  • Toyota: GR Supra, Camry, Land Cruiser, Tundra
  • Honda: Civic, Passport, Odyssey
  • Subaru: WRX, Crosstrek, Forester

These awards recognize models likely to retain the highest resale value after three years, reflecting quality, reliability, and desirability.

“Honda stayed disciplined with pricing in 2024, avoiding the aggressive manufacturer's suggested retail price (MSRP) increases that diminished affordability at other brands, while Lexus’ restraint with incentives paid dividends, as incentives have a direct negative effect on the resale values of older models,” said Danny Battaglia, managing director of ALG customer success at J.D. Power. 

“Additionally, the top brands consistently employ a balanced strategy with regard to trim levels, powertrains and pricing, which helps bolster residual performance and long-term value for consumers who are shopping in a highly competitive market,” he said. 

Model-Level Residual Value Awards

Lexus receives the most model-level awards with five, followed by Toyota with four. GMC, Honda and Subaru each receive three model-level awards. Model award recipients include: 

  • Lexus: IS, LS, NX, RX and TX
  • Toyota: GR Supra, Camry, Land Cruiser and Tundra
  • GMC: Sierra 3500 HD, Hummer EV SUT and Hummer EV SUV
  • Honda: Civic, Passport and Odyssey 
  • Subaru: WRX, Crosstrek and Forester 
  • BMW: 5 Series and X1
  • Jeep: Wagoneer and Gladiator
  • Acura: Integra
  • Cadillac: Escalade 
  • Chevrolet: Corvette 
  • Dodge: Charger Daytona 
  • Hyundai: Kona EV
  • Kia: Telluride 
  • Mercedes-Benz: Sprinter 
  • Nissan: Kicks
  • Tesla: Model 3

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. 

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, weather and macroeconomic environment.

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