Automotive Lease Guide (ALG) Announces Seventh Annual Residual Value Awards for the Top Segment Leaders and Brand Residual Value Awards

SANTA BARBARA, Calif., Dec. 20, 2005 -- ALG's annual Residual Value Awards honor those vehicles in each automotive segment predicted to retain the highest percentage of their original price. For the third consecutive year, American Honda Motor Company, Inc. heads the list with the Honda Brand winning the Industry Brand Residual Value Award.

Honda also received two individual segment awards: the Odyssey for the Minivan Segment and the Accord for the Midsize Car Segment. This is the fifth consecutive win for the Honda Odyssey and the second win for the Accord. Acura, a division of American Honda Motor Company, Inc., is the winner of the Near Luxury Car Segment for the TL.

BMW of North America, LLC has once again made a strong showing by winning the Luxury Brand Residual Value Award for the third consecutive year. MINI USA, a division of BMW of North America, has won the Compact Car Segment for the MINI Cooper for the fourth time.

Toyota Motor Sales, USA, Inc. took home the most Residual Value Awards this year by winning six individual segment awards: the Avalon for the Fullsize Car Segment, Tacoma Pick-up for the Compact Truck Segment, Tundra for the Fullsize Truck Segment, RAV4 for the Compact SUV Segment, 4Runner for the Midsize SUV Segment, and the Sequoia for the Fullsize SUV Segment. This is the fifth consecutive win for the Toyota Tacoma, Tundra and Sequoia; and the third consecutive win for the 4Runner.

Mercedes-Benz USA LLC is the winner of this year's Luxury Car Segment award for the CLS Class.

The Sports Car Segment award this year goes to Porsche Cars North America, Inc. for the 911 Carrera.

And last but not least, the CUV (Crossover Utility Vehicle) award goes to Land Rover North America, Inc. for the Range Rover Sport.

"In an era of negative pricing and overcapacity, Residual Value excellence is increasingly difficult to achieve," said Raj Sundaram, President of Automotive Lease Guide. "Both the segment and brand winners clearly demonstrate that quality products combined with effective pricing strategies will rise to the top." Sundaram added that, "While the top rankings did not change, several brands have shown significant improvement over last year, highlighting the importance manufacturers are placing on residual value as a long-term objective."

This year's awards are based on 2006 model year vehicles. For the fourth year, ALG has also included awards for the brand with the highest predicted resale value of all industry and luxury vehicles. The awards are derived after careful study of segment competition, historical vehicle performance and industry trends. Award winners are featured on http://www.alg.com/, The Wall Street Journal, Automotive News, and other automotive publications and websites dedicated to bringing the industry's best performing models into the public eye.


Industry Brand Residual Value Rankings

Rank Brand
1 HONDA
2 TOYOTA
3 VOLKSWAGEN
4 SUBARU
5 NISSAN
6 JEEP
7 MAZDA
8 SATURN
9 GMC

Only brands above the industry average were ranked. Below industry average were the following brands (listed in alphabetical order): Buick, Chevrolet, Chrysler, Dodge, Ford, Hyundai, Kia, Mercury, Mitsubishi, Pontiac, and Suzuki.



Luxury Brand Residual Value Rankings

Rank Brand
1 BMW
2 LEXUS
3 LAND ROVER
4 MERCEDES-BENZ
5 ACURA
6 INFINITI

Only brands above the luxury average were ranked. Below luxury average were the following brands (listed in alphabetical order): Audi, Cadillac, Jaguar, Lincoln, Saab and Volvo.



2006 Residual Value Award Winners

Brand Awards Brand
Industry Brand Residual Value Award American Honda Motor Company, Inc.
Luxury Brand Residual Value Award BMW of North America, LLC

Segment Awards Vehicle
Compact Car MINI Cooper
Midsize Car Honda Accord
Fullsize Car Toyota Avalon
Sports Car Porsche 911 Carrera
Near Luxury Car Acura TL
Luxury Car Mercedes-Benz CLS Class
Minivan Honda Odyssey
CUV (Crossover Land Rover Range
Utility Vehicle) Rover Sport
Compact SUV Toyota RAV4
Midsize SUV Toyota 4Runner
Fullsize SUV Toyota Sequoia
Compact Truck Toyota Tacoma Pick-up
Fullsize Truck Toyota Tundra



2005 Residual Value Award Winners

Brand Awards Brand
Industry Brand Residual Value Award American Honda Motor Company, Inc.
Luxury Brand Residual Value Award BMW of North America, LLC

Segment Awards Vehicle
Compact Car MINI Cooper
Midsize Car Nissan Altima
Sports Car Mercedes-Benz SLK
Near Luxury Car Infiniti G35
Luxury Car Mercedes-Benz CLK
Minivan Honda Odyssey
CUV Volvo XC90
Compact SUV Honda CR-V
Midsize SUV Toyota 4Runner
Fullsize SUV Toyota Sequoia
Compact Truck Toyota Tacoma
Fullsize Truck Toyota Tundra



Note: All brands with vehicles in at least three segments and minimum annual volume of 40,000 units were included. As a result of this requirement, MINI and Porsche as well as other brands were excluded from the above rankings.

Based in Santa Barbara, California, Automotive Lease Guide has been forecasting automotive residual values for over 36 years in both the U.S. and Canadian markets. ALG is a DealerTrack company (http://www.dealertrack.com/).

source : theautochannel

 

The real hidden meanings of these lists, perhaps more than anything else, is how much it will ultimately cost to lease one of these vehicles. Leasing, to put it in somewhat oversimplified terms, is generally paying for the difference between what a car is worth brand-new on the lot or in the showroom and what its projected " residual " value will be 2-4 years down the road. The higher the projected residual value, the less the monthly lease payment in general will be. Honda and Toyota, obviously, are some of the best performers here....but of course it makes them expensive to buy as used cars.....particularly Certified used ones. This is why I often recommend brand-new Toyotas and Hondas, particularly with a lease, for people instead of recent used ones. In many cases they just don't depreciate enough in the first several years to make them really attractive as used cars for a purchase....why pay a large percentage of list price for a used one when you can get a brand-new one for not much more? I see this all the time at Toyota and Honda dealerships......asking prices for used Corollas, Camrys, Civics, and Accords for 80-90% of what a new one would cost, particularly for the Certified used ones.

This is also one of the reasons why Hyundai and Kia , while not totally out of the leasing buisness, do not actively promote leasing as much as some other automakers. Their new-found increases in sales, quality, fit-and-finish, and reliability in the last several years has not yet caught up in the used-car market with a lot of demand for their used vehicles, so their residual values are not particularly high, necessitating higher monthly lease payments than for some other cars. In other words, the general public perception of Korean automakers, while improving, still lags behind what they have actually accomplished recently and what they now deserve. This, of course, makes the more recent used ones attractive as a used-car purchase....the price is low but the quality is still reasonably good.

 

Honda Tops in Resale Value
The Daily Auto Insider
Friday, December 30, 2005
December 2005


For the third consecutive year, American Honda Motor Company, Inc. heads the list with the Honda Brand winning the Industry Brand Residual Value Award, according to a news release. Honda products also received two individual segment awards: the Odyssey for the Minivan Segment and the Accord for the Midsize Car Segment. This is the fifth consecutive win for the Honda Odyssey and the second win for the Accord. Acura, a division of American Honda Motor Company, Inc., is the winner of the Near Luxury Car Segment for the TL.

BMW of North America, LLC has once again made a strong showing by winning the Luxury Brand Residual Value Award for the third consecutive year. Mini USA, a division of BMW of North America, has won the Compact Car Segment for the Mini Cooper for the fourth time.

Toyota Motor Sales, USA, Inc. took home the most Residual Value Awards this year by winning six individual segment awards: the Avalon for the Fullsize Car Segment, Tacoma Pick-up for the Compact Truck Segment, Tundra for the Fullsize Truck Segment, RAV4 for the Compact SUV Segment, 4Runner for the Midsize SUV Segment, and the Sequoia for the Fullsize SUV Segment. This is the fifth consecutive win for the Toyota Tacoma, Tundra and Sequoia; and the third consecutive win for the 4Runner.

Mercedes-Benz USA LLC is the winner of this year's Luxury Car Segment award for the CLS Class.

The Sports Car Segment award this year goes to Porsche Cars North America, Inc. for the 911 Carrera.

And last but not least, the CUV (Crossover Utility Vehicle) award goes to Land Rover North America, Inc. for the Range Rover Sport.

"In an era of negative pricing and overcapacity, Residual Value excellence is increasingly difficult to achieve," said Raj Sundaram, President of Automotive Lease Guide. "Both the segment and brand winners clearly demonstrate that quality products combined with effective pricing strategies will rise to the top." Sundaram added that "while the top rankings did not change, several brands have shown significant improvement over last year, highlighting the importance manufacturers are placing on residual value as a long-term objective."

This year's awards are based on 2006 model year vehicles. For the fourth year, ALG has also included awards for the brand with the highest predicted resale value of all industry and luxury vehicles. The awards are derived after careful study of segment competition, historical vehicle performance and industry trends. Award winners are featured on www.alg.com, The Wall Street Journal, Automotive News, and other automotive publications and websites dedicated to bringing the industry's best performing models into the public eye.

Summary of 2006 Residual Value Award Winners

BRAND AWARDS
Industry Brand Residual Value Award: American Honda Motor Company, Inc.
Luxury Brand Residual Value Award: BMW of North America, LLC

SEGMENT AWARDS
VEHICLES
Compact Car: Mini Cooper
Midsize Car: Honda Accord
Fullsize Car: Toyota Avalon
Sports Car: Porsche 911 Carrera
Near Luxury Car: Acura TL
Luxury Car: Mercedes-Benz CLS Class
Minivan: Honda Odyssey
CUV (Crossover Utility Vehicle): Land Rover Range Rover Sport
Compact SUV: Toyota RAV4
Midsize SUV: Toyota 4Runner
Fullsize SUV: Toyota Sequoia
Compact Truck: Toyota Tacoma Pick-Up
Fullsize Truck: Toyota Tundra

Industry Brand Residual Value Rankings (in finishing order)
1. Honda
2. Toyota
3. Volkswagen
4. Subaru
5. Nissan
6. Jeep
7. Mazda
8. Saturn
9. GMC

Only brands above the industry average were ranked. Below industry average were the following brands (listed in alphabetical order): Buick, Chevrolet, Chrysler, Dodge, Ford, Hyundai, Kia, Mercury, Mitsubishi, Pontiac, and Suzuki.

Luxury Brand Residual Value Rankings (in finishing order)
1. BMW
2. Lexus
3. Land Rover
4. Mercedes-Benz
5. Acura
6. Infiniti

Only brands above the luxury average were ranked. Below luxury average were the following brands (listed in alphabetical order): Audi, Cadillac, Jaguar, Lincoln, Saab and Volvo.

Note: All brands with vehicles in at least three segments and minimum annual volume of 40,000 units were included. As a result of this requirement, Mini and Porsche as well as other brands were excluded from the above rankings.

Source: Automotive Lease Guide

 

https://www.clublexus.com/forums/sho...&highlight=ALG

 

ohhh...haha...your funny Andrew. Thanks for the heads up. lol.