In a market where new and used vehicle prices remain stubbornly high, budget-conscious buyers are increasingly looking for vehicles that offer lasting value. The J.D. Power 2025 U.S. ALG Residual Value Awards have emerged as a guiding light, shining a spotlight on the automotive industry's best performers. For the fourth consecutive year, Lexus has claimed the title of best premium brand, while Honda continues to dominate the mass market. Lexus led all brands with an impressive five model-level awards, closely followed by Toyota with four.

Uncover the Brands That Promise Long-Term Vehicle Value

Lexus: A Leader in Residual Value

Lexus stands out with five model-level awards for the IS, LS, NX, RX, and TX. This remarkable achievement showcases the brand's commitment to quality and durability. Lexus vehicles are known for their sleek designs, advanced technology, and exceptional performance. Over the years, they have consistently maintained their value, making them a popular choice among leaseholders and buyers alike. The IS, with its sporty handling and refined interior, is a favorite among enthusiasts. The LS, on the other hand, offers luxury and comfort in spades, while the NX and RX provide a perfect balance of style and practicality. The TX, Lexus' latest addition to the lineup, has also been well-received, thanks to its spacious interior and impressive towing capacity.

Lexus' success in the residual value awards is not a fluke. The brand's attention to detail and focus on quality have earned them a reputation for excellence. From the materials used in construction to the engineering behind each vehicle, Lexus leaves no stone unturned. This commitment to quality is reflected in the resale values of their models, which remain high even after several years on the road.

In addition to their outstanding performance, Lexus also offers a comprehensive warranty and excellent customer service. This gives buyers peace of mind knowing that they are investing in a vehicle that will last and be well-supported throughout its life. With Lexus, you get more than just a car; you get a lifestyle.

Toyota: A Close Second in Residual Value

Toyota follows closely behind Lexus with four model-level awards for the GR Supra, Camry, Land Cruiser, and Tundra. Toyota has long been known for its reliability and durability, and these awards are a testament to that. The GR Supra, with its powerful engine and sporty handling, is a favorite among driving enthusiasts. The Camry, on the other hand, is a staple in the midsize sedan segment, offering a comfortable ride and excellent fuel economy. The Land Cruiser is a true icon, capable of tackling any terrain with ease, while the Tundra is a workhorse that can handle heavy loads and tough conditions.

Toyota's success in the residual value awards can be attributed to their consistent quality and value for money. The brand offers a wide range of vehicles to suit different needs and budgets, and each model is built to last. Toyota's commitment to innovation and continuous improvement is also evident in their latest models, which feature advanced safety technologies and cutting-edge design.

In addition to their performance and reliability, Toyota also offers a strong resale value. This makes their vehicles a popular choice among leaseholders and buyers who are looking for a long-term investment. With Toyota, you can be confident that your vehicle will hold its value and provide you with years of reliable service.

Honda: The Mass Market Champion in Residual Value

Honda claims three model-level awards for the Civic, Passport, and Odyssey. The Civic is a perennial favorite in the compact sedan segment, offering a fun driving experience and excellent fuel economy. The Passport is a mid-size SUV that combines style and practicality, while the Odyssey is a top choice for families thanks to its spacious interior and comfortable ride.

Honda's success in the residual value awards is due to their disciplined pricing strategies. In 2024, Honda avoided the aggressive MSRP hikes that many of their competitors resorted to, making their vehicles more affordable and attractive to buyers. This approach has paid off, as Honda's models have maintained their value over time and are in high demand in the used car market.

In addition to their pricing strategies, Honda also offers a wide range of features and options on their models, making them stand out from the competition. From advanced safety technologies to comfortable interiors, Honda has something for everyone. With Honda, you get a vehicle that not only performs well but also provides value for money.

GMC, Subaru, BMW, Jeep, Acura, Cadillac, Chevrolet, Dodge, Hyundai, Kia, Mercedes-Benz, Nissan, and Tesla: The Rest of the Residual Value Leaders

GMC, Subaru, BMW, Jeep, Acura, Cadillac, Chevrolet, Dodge, Hyundai, Kia, Mercedes-Benz, Nissan, and Tesla also received awards for their models. GMC's Sierra 3500 HD, Hummer EV SUT, and Hummer EV SUV were recognized for their durability and performance. Subaru's WRX, Crosstrek, and Forester were praised for their all-wheel drive capabilities and off-road prowess. BMW's 5 Series and X1 were commended for their luxury and performance, while Jeep's Wagoneer and Gladiator were lauded for their off-road capabilities and ruggedness. Acura's Integra was recognized for its sporty handling and stylish design, while Cadillac's Escalade was praised for its luxury and comfort. Chevrolet's Corvette was commended for its performance and style, while Dodge's Charger Daytona was recognized for its muscle car appeal. Hyundai's Kona EV and Kia's Telluride were praised for their electric and hybrid technology, while Mercedes-Benz's Sprinter was recognized for its commercial vehicle capabilities. Nissan's Kicks was commended for its affordability and practicality, while Tesla's Model 3 was recognized for its advanced technology and long-range capabilities.

Each of these brands has its own unique selling points and strengths. Whether it's performance, luxury, or practicality, there is a vehicle on this list that will meet the needs of every buyer. These awards are a testament to the quality and value of these brands and their models.

The U.S. ALG Residual Value Awards set the industry benchmark for recognizing vehicles that are expected to retain the highest percentage of their original MSRP over three years. This value retention is a critical factor in vehicle leasing costs and underscores a brand's success in maintaining long-term quality, design appeal, and overall desirability. By understanding the factors that impact residual values, manufacturers and lenders can make more informed decisions and enhance profitability.

Numerous factors, including mileage, reliability, options, weather, and the macroeconomic landscape, can affect residual values over a lease term. Accurately forecasting these values requires a deep understanding of each variable's impact and how they interact with each other. By combining J.D. Power's market insights with ALG's expertise, more precise end-of-lease value projections are possible, helping manufacturers and lenders make better decisions and provide better service to their customers.