The J.D. Power Canada ALG Residual Value Awards recognize vehicles from the 2021 model year that are forecast to retain the highest percentage of their manufacturer suggested retail price (MSRP) over the next four years.

“Toyota Canada is honoured by the recognition and by the continued trust and confidence customers have in our brands,” said Larry Hutchinson, President & CEO, Toyota Canada Inc.“A vehicle’s depreciation is a large part of the ownership cost and our retained value leadership is another reason our customers and guests choose our vehicles.”

ALG, the industry benchmark of automotive residual value projections and a division of J.D. Power, recently announced the winners of the J.D. Power 2021 Canada ALG Residual Value Awards, ranking Toyota (mainstream) and its luxury division, Lexus (premium) as the top brands in their respective segments.

The J.D. Power Canada ALG Residual Value Awards are the automotive leasing industry standard when it comes to recognizing the vehicles segments that are projected to hold the highest percentage of the manufacturer’s suggested retail price (MSRP) after a four-year period for mainstream vehicles, and after a three-year period for premium vehicles. This is a vital consideration for car buyers when assessing the total cost of ownership for a particular vehicle whether the vehicle is financed, leased or purchased with cash. This year’s recipients have shown strong forecasted value in their competitive segments in the Canadian market for the mainstream and premium segments.

“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 Michelle MacDonald, director of ALG industry solutions at J.D. Power. “Knowing which vehicles are predicted to hold their value and their respective rate of depreciation is paramount for manufacturers and consumers alike.”

For the 2021 award process, 272 model lines were evaluated through careful analysis by the ALG team of industry experts and ALG’s proprietary Canadian forecasting model. Eligibility for a brand award requires a manufacturer to have vehicle entries in at least four different segments. To account for differences across trim levels, model averages are weighted based on percentage share relative to the entire model line.

In addition to the Mainstream Brand win, Toyota also won seven segment awards, more than any other brand:

• Compact: Toyota Corolla
• Compact Utility: Toyota RAV4 (2nd consecutive year)
• Fullsize: Toyota Avalon
• Fullsize Pickup: Toyota Tundra (12th consecutive year)
• Midsize Pickup: Toyota Tacoma (11th consecutive year)
• Midsize Utility 3rd row seating: Toyota Highlander (2nd consecutive year)
• Off-Road Utility: Toyota 4Runner (2nd consecutive year)

Numerous variables affect the actual residual value of a vehicle over a multi-year lease term. Examples include auction values; vehicle content; vehicle pricing; industry data; and macroeconomic factors. Since these factors contribute to a more accurate residual value forecast, vehicle shoppers are able to better understand the total cost of ownership.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modelling capabilities to understand consumer behaviour, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

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Please Note: The details of this article were accurate at the time it was written. Manufacturers may change the details of any vehicle’s specifications, at any time, without notice.