McLEAN, Va. -

In a year like no other, 2020 saw the automotive sector go through major disruptions in production, sales and shifts in key consumer values like dependability and trustworthiness. As a result, a new group of vehicle models are rising to the top in resale value.

The J.D. Power 2020 Resale Value Awards are presented to vehicle models with the best resale value across 25 car, truck, van and SUV segments, in addition to the model with the best overall resale value in the automotive industry. The winners (by manufacturer) can be found in the photo window above.

Noteworthy is the emergence of the Genesis brand, the luxury division of the Hyundai Motor Company. The Genesis G90 model earns the top spot for the best resale value in the large premium car segment, a very impressive feat for a model that entered the market with the 2017 model year. The G90 displaces perennial leaders in the segment like Lexus, BMW, Mercedes-Benz and Porsche. There are two primary reasons:

  • The Genesis brand ranked highest in Overall Vehicle Dependability among all brands in the J.D. Power 2020 U.S. Vehicle Dependability Study. This is the first year that Genesis has been included in the study — and it knocked Lexus out of the top spot.
     
  • Genesis was one of only three luxury brands that performed better than the industry average in the J.D. Power 2020 Initial Quality Study.

The strong showing by Genesis across categories demonstrates that consumers continue to reward OEMs that build innovative and dependable vehicles, even in the midst of a pandemic.

Reductions in incentive spending raise questions about affordability, resale values

The pandemic has caused major production interruptions that have led to significant declines in overall incentive spending by OEMs that have effectively raised prices to consumers.

This has resulted in affordability concerns among new-vehicle buyers. This will be an important factor to observe over the next year, as it is likely to influence how consumers value vehicles coming into the used-vehicle market in 2021.

However, the ascension of many unexpected models to a top spot in 2020 is likely to put pressure on other models as we move deeper into the decade. This is extremely exciting for consumers, as it will very likely result in the introduction of innovative products packed full of the latest technology and safety features.

Over the long run, we expect incentive spending to rebound. That said, it is not going to be like flipping a light switch. As the industry works through the consequences of the pandemic—and consumers see the positive effects of the new vaccines that will precede a return to some sense of normalcy—more traditional incentive dynamics will return.

In the meantime, we can expect to see some great products on the market as brands vie for top spots in used vehicle valuations.

David Paris is an executive analyst at J.D. Power Valuation Services.