Land Rover and Toyota were the top brands offering vehicles expected to retain highest level of their value – called residual value -- after three years, according to the latest edition of the annual ALG Residual Value Awards. Land Rover and Toyota topped the premium and mainstream brand categories, respectively.
This year’s edition, which ranked MY2015 vehicles, included midsize and full-size commercial vans covered by the awards, bringing the total segments vying for the accolades to 26. ALG said in a statement that awards recipients were chosen based on the vehicles’ strong value within their segments.
Larry Dominique, president of ALG and executive vice president of sister company TrueCar, said in the statement that residual value is important for carmakers and consumers alike since it indicate a vehicle’s future value – based on the quality, durability and brand desirability as well as other factors.
Residual values forecasts are also important since they serve as basis for many lease programs, as financing companies that write leases use them to determine how much of a vehicle’s value has to be paid for over the month of a lease.
According to the statement, Land Rover lorded over the premium classification due as it has “having consistently delivered a stream of hot, new vehicles for which customer demand far outweighs supply.” Dominique noted that Land Rover models like the Range Rover Sport only last on dealers’ lots for an average of 13 days, in contrast to the industry average of 65 days.
Toyota dethroned Honda in the mainstream category, after winning five segment awards. The Toyota Prius V wagon won ALG’s alternative-fuel category while the Toyota Tacoma pickup truck was picked as the RVA winner, its 14th in a row.
Other Toyota vehicles winning segment awards are the Toyota Tundra, the Lexus IS, Lexus GX and Toyota Land Cruiser also received honors. Winning carmakers will receive the awards at the Los Angeles Auto Show this week. Last year’s winners were Mercedes-Benz and Honda.