Consistent quality, durability, and pricing key to retaining higher residual values

The key for automotive manufacturers in retaining higher residual values is the ability to provide consistent quality, durability, and pricing across their vehicle models, according to a J.D. Power update.

That comment stems from the results of the company’s J.D. Power 2024 Canada ALG Residual Value Awards, as the OEMs that were able to provide the three aforementioned key elements consistently did manage to retain higher residual values.

“Although Toyota and GM have a broad lineup and are high-volume producers, the consistency throughout their models has garnered higher residual values,” said Danny Battaglia, Managing Director of ALG Customer Success at J.D. Power, in a statement.

She added that these OEMs have both broad appeal vehicles high in the

rankings and specialized vehicles at the top as well — an example of the latter being an off-road vehicle. “Continued consistency with quality, durability and pricing produces high demand which retains residual values.”

The model-year 2024, 15 brands earned awards in 28 segments. The process of selecting the award-winners involves evaluating 298 model lines by considering used-vehicle performance, brand outlook, and product competitiveness. For an OEM to receive a brand award, they must have model entries in at least four

different segments. Toyota and Lexus topped the brand-level performers this year.

The model award recipients are as follows:

  • Toyota: Corolla, Camry, 4Runner, Sequoia, Grand Highlander, RAV4, Tundra, Tacoma and Sienna
  • Lexus: IS and LX
  • Audi: A3 and Q3
  • Chevrolet: Corvette and Silverado 3500 HD
  • Mercedes-Benz: AMG GT 4-door Coupe and GLB
  • Subaru: WRX and Crosstrek
  • Nissan: Z
  • BMW: 5 Series
  • Hyundai: Kona
  • Land Rover: Range Rover Velar
  • Acura: MDX
  • Honda: Passport
  • Ford: F-150 Lightning
  • Cadillac: LYRIQ
  • GMC: Savana
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