The residual value of a vehicle is critical information for both consumers and automakers, estimating how much a vehicle will depreciate and what it’s worth after a given lease period has ended. Now, General Motors has no less than four new residual value awards to point to.
Per an announcement from market research company and ALG parent J.D. Power, the winners of the 2021 Canada ALG Residual Value Awards were recently unveiled, with GM taking home awards in four of the model-level categories.
GMC grabbed half of those, with the GMC Yukon recognized in the Full-Size Utility Vehicle segment and the GMC Savana recognized in the Full-Size Commercial Van segment. Meanwhile, Chevrolet scooped up GM’s two remaining awards, with the Chevrolet Silverado HD recognized in the Full-Size Heavy Duty Pickup segment, and Chevrolet Corvette recognized in the Premium Sports Car segment.
“Residual values are the backbone of the auto leasing business in Canada due to an estimated CAD$26 billion in outstanding lease portfolio risk,” said the director of ALG industry solutions at J.D. Power, Michelle MacDonald.
For the latest 2021 Residual Value Awards, ALG looked at 272 model lines, with a team of experts leveraging ALG’s Canadian forecasting model used to determine the winners. Model averages were weighted based on percentage share relative to the entire model line, thus accounting for trim level differences.
The variables that contribute to a vehicle’s residual value are numerous, and according to ALG, includes things like auction values, vehicle content, pricing, industry data, and broader macroeconomic factors.
Mainstream vehicles were evaluated for a four-year period, while premium vehicles were evaluated for a three-year period. This year was the first time ALG included the Full-Size Heavy Duty Pickup segment.
For the Brand-Level Residual Value Awards, ALG recognized Toyota in the Mainstream segment, and Lexus in the Premium segment.