TROY, Mich. -

Perhaps now more than ever with the used-car market in a place never previously seen, having tangible insight into residual values is even more crucial to automakers, finance companies and dealerships.

With that scene in mind, experts announced the recipients of the J.D. Power 2022 U.S. ALG Residual Value Awards, highlighted by Honda and Lexus being named brand award winners in the mass market and premium segments, respectively.

“Accurately forecasting residual values in the auto industry is a key factor in assessing an estimated $225 billion lease portfolio of vehicles in the United States,” said Eric Lyman, vice president of ALG, the division of J.D. Power.

“The brands and vehicle models that rise to the top demonstrate that they score well across the award program’s criteria, including manufacturers’ superior design and quality,” Lyman continued in a news release.

The J.D. Power U.S. ALG Residual Value Awards recognize models projected to hold the highest percentage of their manufacturer’s suggested retail price following a three-year period of ownership.

ALG explained this value retention is a key variable in the lease cost of a vehicle, underscoring an automaker’s success in the areas of long-term quality and design, as well as the overall desirability of automotive brands and their models.

ALG added it is also a vital component to vehicle shoppers as it helps forecast a vehicle’s resale value once they sell or trade-in the vehicle for a new one, consistently cited as an important purchase consideration by shoppers.

For model-year 2022, ALG highlighted 19 different brands have won awards in 29 segments. The award process consists of evaluating 284 models through analysis of used-vehicle performance, brand outlook and product competitiveness.

The company explained 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.

In addition to the mass market brand level award, Honda also took home three model-level awards.

And Lexus ranked highest among premium brands while only having one segment-winning model.

“The achievement of Lexus speaks to an impressive, industry-leading continuity of residual value across its entire lineup,” Lyman said. “It’s like a decathlete who wins only one of the 10 individual events but scores enough points in each of them to stand atop the podium.”

Honda and Hyundai shared the most model-level awards, with three each. They are followed by a diverse list of OEMs winning in two categories: Audi, Kia, Land Rover, Mercedes-Benz, Subaru and Toyota. That list included:

• Honda: Civic, Passport and Odyssey

• Hyundai:  Accent, Kona and Kona EV

• Audi: A6 Allroad and Q3

• Kia: K5 and Telluride

• Land Rover: Range Rover Velar and Discovery

• Mercedes-Benz: AMG GT 4-Door and Metris

• Subaru:  WRX and Forrester

• Toyota: Tacoma and Tundra

Noteworthy for 2022, ALG said the Mercedes-Benz AMG GT 4-Door topped long-time segment leader Lexus LS in the premium executive segment, while the new Ford Bronco beats out perennial winners Jeep Wrangler and Toyota 4Runner for top honors in the off-road utility segment.

Also of note, ALG mentioned there are the increasingly popular electric vehicle winners, which are highlighted by the Kona EV in the mass market electric segment and the Tesla Model Y 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, weather and macroeconomic environment,” ALG experts said.

“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,” they continued.

“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,” they went on to say.