🌟 First Choice Second Hands

The Gist

Lexus and Honda are the undisputed resale value kings, topping the 2025 J.D. Power U.S. ALG Residual Value Awards for the fourth year straight. Lexus dominates premium brands, Honda leads mass-market, and Toyota isn’t far behind. What’s their secret? Steady pricing, restraint on incentives, and smart trim-level strategies that keep their models in high demand. Dealers take note—high resale value = stronger margins and faster turnover. Stock smart, avoid incentive-heavy duds, and remember: some cars age like fine wine, while others become “$500 OBO” Craigslist specials.

Sources

• CarPro - J.D. Power Highest Residual (Resale) Value Awards

• Consumer Affairs - Lexus, Honda lead in residual value in luxury and mass-market segments

• Automotive Drive - Honda, Lexus best in retaining resale value: JD Power

• Auto Remarketing - Tradition continues as Lexus, Honda take top honors in ALG Residual Value Awards

Who’s Holding Their Value? (And Who’s Watching It Depreciate Like a Leaky Balloon?)

Car buyers, dealers, and lease shoppers take note: the 2025 J.D. Power U.S. ALG Residual Value Awards have spoken. And for the fourth straight year, Lexus and Honda are sitting comfortably on the throne of resale value retention.

Who’s on Top?

• Lexus is the crowned champion of premium brands, with five models clutching top honors.

• Honda rules the mass-market segment, keeping prices steady while others spiraled.

• Toyota follows closely behind, proving that the family tree is strong.

And because numbers tell the real story, here’s the breakdown of model-level winners:

• Lexus: IS, LS, NX, RX, TX

• Toyota: GR Supra, Camry, Land Cruiser, Tundra

• Honda: Civic, Passport, Odyssey

• Subaru: WRX, Crosstrek, Forester

• GMC: Sierra 3500 HD, Hummer EV SUT, Hummer EV SUV

• Others: BMW 5 Series, Jeep Gladiator, Tesla Model 3, Cadillac Escalade, and more.

What Makes These Cars Gold on Wheels?

Residual value isn’t just luck. It’s a cocktail of smart strategy and buyer psychology. Here’s what the resale heavyweights have in common:

• Price Discipline: Honda played it cool and didn’t inflate MSRPs like a balloon at a kid’s party.

• Incentive Restraint: Lexus didn’t throw out cash rebates like Halloween candy, keeping its resale value sweet.

• Trim & Powertrain Balance: Winning brands keep their lineups lean and mean—no unnecessary bells and whistles that tank resale value.

"The top brands consistently employ a balanced strategy with regard to trim levels, powertrains, and pricing, which helps bolster residual performance and long-term value for consumers shopping in a highly competitive market," said Danny Battaglia, managing director of ALG customer success at J.D. Power.

Do Buyers Even Care About Resale?

Eh, it depends. Some just want the best deal now, future be damned. That’s why brands that sling heavy incentives still move metal. But for those who plan ahead—lease customers, CPO buyers, and trade-in planners—residual value is king.

For dealers? Knowing which models hold value best means smarter trade-in offers, stronger margins, and inventory that won’t become showroom wallpaper.

Pro Tips for Used Car Specialists

Want to keep your lot full of winners and avoid the duds? Here’s the playbook:

• Stock high-resale value models: Lexus, Honda, and Toyota are the MVPs.

• Pay attention to incentives: Less discounting today means better resale tomorrow.

• Mileage and condition matter: A well-loved car keeps its worth longer than a beater.

• Follow demand trends: Reliable nameplates like the Civic and Camry rarely sit unsold.

The Big Takeaway

Not all used cars are created equal. Some roll into the second-hand market like prized collectibles, while others become "Make Me an Offer" Craigslist specials.

If you're stocking up on used inventory, choose wisely—because the best-selling cars aren’t just vehicles, they’re investments.

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