Which Cars Have the Best Resale Value for 2022?
Most shoppers know to crunch the numbers before buying a new vehicle. The first step is to tally up the total cost, including the MSRP and any optional add-ons, taxes and fees. Then comes a calculation of the monthly car payment. As new-vehicle prices soar, an often overlooked part of the equation — the vehicle’s residual value — can offer a silver lining. J.D. Power’s U.S. ALG Residual Value Awards rank mass-market and luxury brands based on their forecasted resale value after three years of ownership, and Honda and Lexus top the lists for 2022.
Related: Now Is a Good Time to Sell Your Extra Used Car; Here’s Why
Which Brands Have the Best Resale Value?
Honda takes the grand prize among mass-market brands in the 2022 ALG Residual Value Awards. (J.D. Power purchased ALG, a residuals consultancy originally known as Automotive Lease Guide, in 2020.) The automaker also walked away with three model-level awards to back up the designation: The Civic sedan and hatchback, Passport SUV and Odyssey minivan were top performers in their respective designated categories for compact cars, mid-size two-row SUVs and minivan.
Meanwhile, Lexus was honored as the best premium brand for overall residual value. The NX SUV was the brand’s sole category winner for Premium Compact Utility, while the LS sedan — a longtime leader for the Premium Executive category — was unseated by the Mercedes-AMG GT 4-Door.
Another upset for 2022 is the all- new Ford Bronco SUV, which came out of the gate in the Off-Road Utility segment to beat prior winners including the Jeep Wrangler and Toyota 4Runner.
In addition to Honda, Hyundai was the only other brand to score three category awards. Its Accent sedan, Kona SUV and Kona Electric SUV won their respective categories. A handful of other brands earned two category awards apiece.
- Honda: Civic (Compact), Passport (Mid-size Utility Two-Row Seating), Odyssey (Minivan)
- Hyundai: Accent (Subcompact), Kona (Micro Utility), Kona EV (Mass-Market Electric)
- Audi: A6 Allroad (Premium Full-Size), Q3 (Premium Subcompact Utility)
- Kia: K5 (Mid-Size), Telluride (Mid-Size Three-Row Seating)
- Land Rover: Range Rover Velar (Premium Mid-Size Utility Two-Row Seating), Discovery (Premium Mid-Size Utility Three-Row Seating)
- Mercedes-Benz: AMG GT 4-Door (Premium Executive), Metris (Commercial Van)
- Subaru: WRX (Sports Car), Forester (Compact Utility)
- Toyota: Tacoma (Mid-Size Pickup), Tundra (Full-Size Pickup)
How the Winners Are Determined
A vehicle’s depreciation — the rate at which it loses value over time — is determined by a combination of factors, such as mileage and condition. J.D. Power’s U.S. ALG Residual Value study forecasts resale value based on additional criteria, including design and quality, and the desirability of the brand and its specific models.
For 2022, J.D. Power evaluated 284 models for used-vehicle performance, brand outlook and product competitiveness. The vehicles expected to hold the highest percentage of original MSRP after three years’ ownership earned the top rankings.
Why Should Shoppers Care?
A vehicle that retains more of its value when it comes time to trade in means greater customer satisfaction, according to the 2021 J.D. Power U.S. Sales Satisfaction Index. The sales satisfaction study shows that high trade-in values offered some reprieve for shoppers amid rising vehicle prices and inventory challenges. While it won’t offset rising prices in the short term, choosing a vehicle with a higher expected resale value can be a smart investment for the future.
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- Used-Car Prices Spiked 30% in Just One Year
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