Lexus is the Top Premium Brand in J.D. Power 2024 U.S. ALG Residual Value Awards

J.D. Power released its annual U.S. ALG Residual Value Awards, and as usual, it was good news for Lexus. Lexus of Henderson is pleased to announce that for the fourth consecutive year, Lexus received the ALG brand award for best residual values for a premium brand. Lexus achieved this with four models that topped their categories and a high rating among the models in general. Only Toyota and Honda had as many models top their respective categories.

The U.S. ALG Residual Value Awards are the automotive industry standard in recognizing the vehicle models projected to hold the highest percentage of their manufacturer’s suggested retail price following three years of ownership. Initially a tool to assist manufacturers and financiers in determining model residual value when setting up leases, the figures are also relevant in predicting general resale value. The high resale value underscores a manufacturer’s success in long-term quality and design and the overall desirability of automotive brands and their models.

The variables affecting a vehicle’s actual residual value over three years are numerous and include mileage, quality/reliability, options, and packaging. Outside of the products themselves, a major factor is the macroeconomic environment, which is less easy to predict. 

“The continued strength of Lexus and Honda underscores an attention to detail and a unique strategy in terms of product planning and management,” said Kristen Lanzavecchia, Director of Customer Success at ALG, the division of J.D. Power recognized as the industry benchmark of automotive residual value projections. “Overall, these brands took a measured approach in their freshening of products, trim levels and powertrains, resulting in higher residual performance and better long-term value for their customers.”

The more measured approach speaks to brands concentrating on models that offered both gas and hybrid powertrains and, as is the case for Lexus, plug-in hybrid drivetrains.

The study divides the industry offerings into 28 categories and ranks every vehicle within its category and a winner for each. The four Lexus that reached the top of their respective categories include the IS, NX, LX, and RX model lines. 

Having four category winners alone did not put Lexus on top, as its other products had high enough predicted resale to bolster the brand’s standing. The same combination of design quality, reliability, and luxury you look for in a new Lexus will be worth the premium to anyone you eventually sell it to, even if it is back to us at Lexus of Henderson for a trade-in. Our award-winning lineup is yet another reason to visit Lexus of Henderson for your next new car.