The 2022 Cadillac Escalade has received a J.D. Power Canada ALG Residual Value Award.
ALG, the official residual-value arm of global research firm J.D. Power, recently published the results of its 2022 Canada Residual Value Awards. General Motors Canada performed well in the study, and the Cadillac Escalade contributed to this rather impressive performance, beating outs its rivals on the full-size luxury SUV category. This was the only Cadillac vehicle to receive an ALG Residual Value award for the 2022 model year.
Other luxury vehicles recognized for their potential future residual value include the Lexus IS sedan, GX SUV and UX crossover, as well as the Mercedes-AMG GT 4-Door sports coupe and compact GLB crossover.
J.D. Power says “numerous variables affect the actual residual value of a vehicle over a multi-year lease term,” including mileage, quality/reliability, options and feature sets and macroeconomic environment. Manufacturers that have a better understanding of these factors will be able to more accurately predict future values for vehicles that come off lease or are repossessed, helping them maximize profits from second-hand vehicle sales.
ALG awarded a total of 16 different brands across 29 vehicle segments in this year’s edition of its annual used vehicle valuation study. The 2022 evaluation process accounted for 274 different vehicle model lines, which were analyzed on a variety of factors including used market performance, brand outlook and overall product competitiveness.
GM netted $2 billion from used vehicle sales in 2021, according to its recently published earnings report. The automaker will also launch its own used car sales service this year called CarBravo, which will sell used examples of both GM vehicles and vehicles from other automakers. This effort will make residual values extra important to GM, as it will likely stand to gain even more from used vehicle sales once the consumer-facing version of CarBravo is up and running in the spring.