Vehicles awarded as top value holders
As J.D. Power’s director of ALG industry solutions Michelle MacDonald described residual values as the backbone of the auto leasing business in Canada, ALG announced the winners of the J.D. Power 2021 Canada ALG Residual Value Awards.
The J.D. Power Canada ALG Residual Value Awards recognize the vehicle segments projected to hold the highest percentage of the manufacturer’s suggested retail price after a four-year period for mainstream vehicles, and after a three-year period for premium vehicles.
The award winners as the top brands for mainstream and premium, respectively, are Toyota and Lexus.
The awards for the first time include the full-size heavy duty pickup segment, and the Chevrolet Silverado HD won in that category. The awards also included the micro utility vehicle segment for the first time.
The Hyundai Kona won that category.
J.D. Power said holding a high percentage of the manufacturer’s suggested retail price is an important consideration for car buyers when assessing the total cost of ownership for a particular vehicle. That is the case whether the vehicle is financed, leased or purchased with cash.
MacDonald said an estimated $26 billion (CAD) in outstanding lease portfolio risk is a reason why she believes residual values are the backbone of the auto leasing business in Canada.
“Knowing which vehicles are predicted to hold their value and their respective rate of depreciation is paramount for manufacturers and consumers alike,” MacDonald said in a news release.
The ALG team of industry experts and ALG’s proprietary Canadian forecasting model used careful analysis in evaluating 272 model lines for the 2021 award process.
To be eligible for a brand award, a manufacturer must have vehicle 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.
J.D. Power said examples of the numerous variables affecting the actual residual value of a vehicle over a multi-year lease term include auction values, vehicle content, vehicle pricing, industry data and macroeconomic factors.
Those factors contribute to a more accurate residual value forecast, J.D. Power said. Because of that, J.D. Power said, vehicle shoppers can better understand the total cost of ownership. The full list of winners, provided by the company, is below.
|Brand-Level Residual Value Awards|
|Model-Level Residual Value Awards|
|Electric Vehicle||Porsche Taycan|
|Subcompact Car||Kia Rio|
|Compact Car||Toyota Corolla|
|Midsize Car||Hyundai Sonata|
|Fullsize Car||Toyota Avalon|
|Micro Utility Vehicle||Hyundai Kona|
|Subcompact Utility Vehicle||Subaru Crosstrek|
|Compact Utility Vehicle||Toyota RAV4|
|Midsize Utility Vehicle—2nd Row Seating||Honda Passport|
|Midsize Utility Vehicle—3rd Row Seating||Toyota Highlander|
|Fullsize Utility Vehicle||GMC Yukon|
|Off-Road Utility Vehicle||Toyota 4Runner|
|Midsize Pickup||Toyota Tacoma|
|Fullsize Pickup||Toyota Tundra|
|Fullsize Heavy Duty Pickup||Chevrolet Silverado HD|
|Premium Compact Car||BMW 2 Series|
|Premium Midsize Car||
|Premium Fullsize Car||Genesis G80|
|Premium Executive Car||Mercedes-Benz AMG GT 4-Door|
|Premium Sportscar||Chevrolet Corvette|
|Premium Subcompact Utility Vehicle||Lexus UX|
|Premium Compact Utility Vehicle||Mercedes-Benz GLB Class|
|Premium Midsize Utility Vehicle—2nd Row Seating||Lexus RX|
|Premium Midsize Utility Vehicle—3rd Row Seating||Lexus GX|
|Premium Fullsize Utility Vehicle||Lexus LX|
|Midsize Commercial Van||Ford Transit Connect|
|Fullsize Commercial Van||GMC Savana|