In a market where affordability pressures are pushing more customers to weigh the total cost of vehicle ownership, the estimated worth of a vehicle at the end of its lease term, known as a residual value, is a key indicator of long-term resale value and affordability. The J.D. Power 2026 U.S. ALG Residual Value Awards,SM released today, highlight the importance of residual values, with Tesla and Toyota showcasing the strongest results.

 

"Strong wholesale retention, solid brand value and a disciplined approach on rental fleet and incentives propelled Toyota to the top spot among mainstream brands," said Danny Battaglia, managing director of ALG customer success at J.D. Power. "Toyota topped six segments for 2026, including a four-peat for GR Supra and five-peat for Tundra. Meanwhile, Tesla avoided the high incentives of other luxury battery electric vehicle brands in 2025. That helped earn it the top rank among luxury brands with the highest performers in three segments–including the refreshed Model Y, which included introduction of a lower-priced base version and additional content on midlevel trims.” 

 

For model-year 2026, 14 different brands receive awards in 26 segments. The 2026 award process consisted of evaluating 300 models through analysis of used-vehicle performance, brand outlook and product competitiveness. Eligibility for a brand award requires a manufacturer to have model-line entries in at least two different vehicle segments. To account for differences across trim levels, model averages are sales-weighted based on percentage share relative to the entire model line. For a segment to qualify for an award, at least four different model lines must be included. 

 

Model-Level Residual Value Awards

Toyota receives the most model-level awards with six, while BMW, Lexus and Tesla each receive three model-level awards.

 

Model award recipients include: 

 

Toyota: GR Supra, GR86, Camry, Sequoia, Tundra and Tacoma

BMW: 3 Series*, 4 Series* and X1

Lexus: NX, RX and LX

Tesla: Model 3, Model Y and Cybertruck

Chevrolet: Corvette and Silverado 3500 HD

Mercedes-Benz: AMG GT 4-DOOR and Sprinter

Subaru: Crosstrek and Solterra

Acura: Integra

Audi: A6

Cadillac: CT4*

Ford: Bronco

Honda: Civic

Jeep: Wrangler

Kia: Carnival

*Tied for first place, Compact Premium Car

 

The J.D. Power U.S. ALG Residual Value Awards are the automotive industry’s standard in recognizing vehicle models projected to hold the highest percentage of their manufacturer’s suggested retail price at open auction after 3 years of ownership. A key indicator of brand health, RVs form a major component in the way automakers set the leasing cost of their vehicles. A strong RV underscores an automaker’s success in vehicle execution and market strategy, as well as the overall desirability of its brand. 

 

Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Among them are mileage and condition; features and pricing; vehicle execution; used supply; market strategy;  seasonality; and macroeconomic factors. These inputs require close accounting to accurately forecast residual values, so manufacturers and lenders with a greater understanding of each factor can equip themselves to optimize their leasing strategies. The combination of J.D. Power’s extensive transaction data and ALG’s deep experience in residual values allows for even more accurate end-of-lease forecasting capabilities.