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Toyota and Lexus rank highest in 2021 Canada ALG Residual Value Awards

Chevrolet and Kia earn trophies in first-ever heavy-duty truck and micro-SUV categories

Jil McIntosh
Feb 04, 2021  •  May 21, 2021  •  1 minute read  •  Join the conversation
2021 Lexus LC500
2021 Lexus LC500 Photo by Nick Tragianis /Driving

Toyota and Lexus have ranked the highest among automotive brands for residual value in Canada, while the Chevrolet Silverado HD was highest in the first-ever rating for heavy-duty trucks, and the Hyundai Kona was named tops in the first rating for micro-utility vehicles.

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They are some of the winners of the J.D. Power 2021 Canada ALG Residual Value Awards, which recognize vehicles that are projected to hold the highest percentage of their MSRP (manufacturer’s suggested retail price) after four years for mainstream vehicles, and three years for premium vehicles.

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Residual value – also known as resale value – is a vital component of determining a vehicle’s overall cost of ownership, whether it’s purchased or leased. Valuation companies figure this out using a variety of factors, including vehicle content and pricing, industry data, what they’re bringing at auction, and what the economy is doing overall.

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It’s especially important for leasing, because that’s how the rates are calculated. Basically, automakers start with the vehicle’s projected residual value, subtract it from the total price, and then divide the difference by the number of months in the lease to determine the monthly payment.

To be eligible for an award, a brand must have vehicle entries in at least four different segments. To account for differences across trim levels, the model averages are weighted based on their percentage share of the entire model line.

A partial list of the winners includes the Porsche Taycan (electric vehicle), Kia Rio (subcompact car), Toyota Corolla (compact car), Hyundai Sonata (midsize car), Subaru Crosstrek (subcompact SUV), Toyota RAV4 (compact SUV), Toyota Tundra (full-size pickup), Toyota Tacoma (midsize pickup), BMW 2 Series (premium compact), Genesis G80 (premium full-size car), Chevrolet Corvette (premium sports car), and Honda Odyssey (minivan).

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