According to J.D. Power, Honda and Lexus have once again been named the premium and mass-market vehicle brands most likely to retain more of their value three years after the vehicle is purchased.
For the fourth consecutive year, the brands earned top honors in the J.D. Power 2025 US ALG Residual Value Awards, which recognize value retention as an indicator of long-term vehicle quality.
“[T]Top brands consistently employ a balanced strategy across trim levels, powertrains and pricing, which helps strengthen residual performance and long-term value for consumers shopping in a highly competitive market,” Danny Battaglia, CEO of ALG Customer Success at JD Power, said in a statement.
Battaglia said Honda remained disciplined with pricing in 2024 over rapid price increases, which would reduce the brand’s affordability.
While many brands have increased their purchase incentives throughout 2024, Lexus has practiced restraint in offering incentives, which has helped maintain brand value, he said.
The incentives have a direct negative effect on the resale value of older models, Battaglia said.
According to J.D. Power, five Lexus models – IS, LS, NX, RX and TX – received model-level awards, the most of any brand. After Lexus, four Toyota models – GR Supra, Camry, Land Cruiser and Tundra – have secured success. GMC, Honda and Subaru received three model awards each, while 11 other brands also received awards, with the majority of recognitions earned for at least one model.
The awards were determined by analyzing 311 vehicle models through used car performance, brand outlook and model competitiveness.