Car resale values are one of those subjects that most everyone has an anecdotal opinion on -- my (insert brand X) holds its value better than your (insert brand Y) -- but they're also something that can be tough to back up unless you've done some serious research. Thankfully, the folks at J.D. Power are willing to slog through that research to give the rest of us some hard data.
The 2022 ALG Residual Value Awards are in, and, according to an announcement made by J.D. Power on Thursday, when it comes to resale values, you still can't beat a Japanese car -- especially if that car is a Honda or a Lexus, which won overall for best mass-market and best premium residual values, respectively.
Neither of the winners should come as a surprise, but it still makes one wonder how J.D. Power has come up with its results. The winning manufacturer is chosen based on the results of a comparison of 284 models using criteria of used-vehicle performance, brand outlook and product competitiveness. A manufacturer also has to offer models in at least four market segments to even be considered.
"Accurately forecasting residual values in the auto industry is a key factor in assessing an estimated $225 billion lease portfolio of vehicles in the United States," said Eric Lyman, vice president of ALG. "The brands and vehicle models that rise to the top demonstrate that they score well across the award program's criteria, including manufacturers' superior design and quality."
Other brands with high-scoring models include Hyundai, which, along with Honda, had three top-scoring models. Brands like Audi, Kia, Land Rover, Mercedes-Benz, Subaru and Toyota each had two top-scoring models.
So, the moral of the story is that if you buy or lease a car and you want something that will retain more of its value, buy a Honda or a Lexus.