Manufacturer Discipline and Consistency Leads to High Residual Values in Canada, J.D. Power Finds

Toyota (Mass Market) and Lexus (Premium) Earn Top Brand Awards for Sixth and Fifth Consecutive Year, Respectively

Manufacturer Discipline and Consistency Leads to High Residual Values in Canada, J.D. Power Finds

Media Relations Contacts
Gal Wilder, NATIONAL Public Relations; Toronto; 647-259-3261, gwilder@national.ca
Geno Effler, J.D. Power; West Coast; 714-621-6224; media.relations@jdpa.com

Vehicle manufacturers with a more balanced and consistent strategy when bringing their products to market have proven to be the leaders when evaluating model year 2025 residual values, according to the J.D. Power 2025 Canada ALG Residual Value Awards, announced today. These awards are the leading automotive industry standard distinguishing the vehicle models projected to hold the highest percentage of the manufacturer’s suggested retail price (MSRP) after four years for mass market vehicles and after three years for premium vehicles.

“Preeminent brands such as Toyota and Lexus have shown they can strategically make select updates or redesigns to their vehicles while retaining elements that deliver strong residual value,” said Danny Battaglia, managing director of ALG customer success at J.D. Power. “Additionally, these top brands’ awareness and tactical approach to pricing trim levels and powertrains also helps raise residual performance and provides long-term value for shoppers that are buying in a competitive market.”

The J.D. Power Canada ALG Residual Value Awards program is a vital consideration for vehicle shoppers when assessing the total cost of ownership for a particular vehicle, whether the vehicle is financed, leased or purchased with cash. This year’s award recipients have shown strong forecasted value in their competitive segments in the Canadian market.

For model year 2025, 16 different brands earned awards in 32 segments. The award process consists of evaluating 282 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.

Residual Value Awards

Lexus and Toyota are the top brand-level performers for 2025. Toyota has the most model-level awards with seven. Model award recipients include:

Toyota: Camry, RAV4, Grand Highlander, Sequoia, 4Runner, Tundra and Sienna
GMC: Hummer EV SUT, Hummer EV SUV, Canyon and Savana
Cadillac: CT4, CT5 and Escalade
Lexus: UX and NX
Subaru: WRX and Crosstrek
Acura: MDX
Audi: A3
Chevrolet: Silverado 3500 HD
Honda: Passport
Hyundai: Kona
Kia: Niro EV
Land Rover: Range Rover Sport
Mercedes-Benz: AMG GT
Nissan: Z
Porsche: Panamera
Tesla: Model 3
Volkswagen: GTI

To view the rank charts for each segment, please visit: http://www.jdpower.com/pr-id/2025003.

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 considered to forecast residual values accurately, the more granularity and greater the understanding of the effect of each variable, the better-equipped manufacturers and lenders can maximize profitability. Combining 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.

About J.D. Power

J.D. Power is a global leader in automotive data and analytics, and provides industry intelligence, consumer insights and advisory solutions to the automotive industry and selected non-automotive industries. J.D. Power leverages its extensive proprietary datasets and software capabilities combined with advanced analytics and artificial intelligence tools to help its clients optimize business performance.

J.D. Power was founded in 1968 and has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business.

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