TORONTO--(BUSINESS WIRE)--ALG, the division of J.D. Power known as the industry benchmark of automotive residual value projections, today announced recipients of the J.D. Power 2022 Canada ALG Residual Value Awards, highlighted by Toyota Canada Inc. and GM Canada taking home the most segment awards. Toyota (mass market) and Lexus (premium) won awards for top brands in their respective segments.
“There’s not much brand diversity in the winners for 2022, meaning that the few brands at the top have found their niche—especially Toyota with its continued dominance in the utility and pickup segments,” said Eric Lyman, vice president of ALG. “Noteworthy is Chevrolet’s success across a variety of key segments—EV, fullsize heavy duty pickups and performance sportscar—that showcase the brand’s enviable product diversity.”
The J.D. Power Canada ALG Residual Value Awards are the automotive leasing industry standard when it comes to recognizing the vehicles segments that are projected to hold the highest percentage of the manufacturer’s suggested retail price (MSRP) after a four-year period for mass market vehicles, and after a three-year period for premium vehicles. This is a vital consideration for car buyers when assessing the total cost of ownership for a particular vehicle whether the vehicle is financed, leased or purchased with cash. This year’s recipients have shown strong forecasted value in their competitive segments in the Canadian market for the mass market and premium segments.
For model-year 2022, 16 different brands won awards in 29 segments. The award process consists of evaluating 274 model lines through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have model 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.
Model-Level Residual Value Awards
Toyota has the most model-level awards with seven. Chevrolet and Lexus each have three awards. The brands with multiple awards are:
- Toyota: Camry, RAV4, Highlander, 4Runner, Tundra, Tacoma and Sienna
- Chevrolet: Bolt EV, Corvette and Silverado 2500 HD
- Lexus: IS, GX and UX
- GMC: Yukon and Savana
- Mercedes-Benz: AMG GT 4-Door and GLB
- Subaru: WRX and Crosstrek
Noteworthy for 2022, the Toyota Sienna beats out perennial winner Honda Odyssey in the minivan segment. Also of note are the increasingly popular electric vehicle winners, the Chevrolet Bolt EV in the mass market electric segment and the Porsche Taycan in the premium electric segment.
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 and macroeconomic environment. Since these factors need to be taken into account in order to accurately forecast residual values, the more granularity and greater the understanding of the effect of each variable, the better equipped manufacturers and lenders are able to maximize profitability. The combination of J.D. Power insights and data with the deep experience of ALG in residual values allows for even more accurate end-of-lease forecasting capabilities.
To view the online press release, please visit http://www.jdpower.com/pr-id/2022008.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
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