Residual Value All-Stars: Luxury Vehicles

Vehicles that retain a strong residual value offer an unmistakable benefit to automakers and consumers alike. Such models allow for a competitive cost of ownership and leasing advantage, with some being better values when it comes to leasing.

One of the biggest factors in the total cost of a lease is the vehicle's residual value. This is especially important on the luxury side of the market because leasing tends to be more popular in this sector than on the mass market side.

Residual Value All-Stars: Mass-market

Vehicles that maintain high residual/resale values deliver unmistakable benefits to all segments of the automotive ecosystem.

Stronger values give manufacturers the ability to offer the market a competitive total cost of ownership advantage that can have a tangible effect on consumers and dealers alike. But what vehicles have the best residual values today?

Which ones, among the mass market brands, are at the top?

Used Vehicle Market Continues Sluggish Start to 2019

The used vehicle market continued its sluggish start to the new year, as a result the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index declined 1.3 points – relative to January – to 116.1. February’s decline marked the sixth consecutive month of declines in the used market and is a trend we should expect to see more of throughout the course of 2019 as used vehicle prices are expected to decline relative to 2018.

EV Pulse: Tesla Model Y Unveiled

Tesla unveiled their Model Y SUV last week. Pricing starts at $47,000 and production will start sometime in 2020. There will be a $39,000 version as well but it will not be available until later down the road. The Model Y will be the fourth vehicle in the California automaker's lineup, the new SUV has the potental to be the most successful model Tesla sells.

Used Vehicle Price Index on Track to Reach Highest Level Since Late 2015

Data collected through the first three weeks of August shows that used vehicle prices have improved relative to July and are on track to end the month even stronger than anticipated. So far month-to-date, the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index has increased by 2.3 points – relative to July – to 122.0. August’s preliminary result marks the third consecutive month of index growth and puts it on track to reach its highest level since late 2015.

Porsche Mulls Expanding Hybrid Technology to the 911

Porsche is on a mission to electrify its lineup. Tightening emissions standards have forced many automakers to turn to alternative power sources. With the fully electric Mission-E on the horizon and the introduction of the Panamera Turbo S E-Hybrid, the German sports car brand is now looking to add battery power to its most iconic model. According to Bloomberg, the next generation Porsche 911 will get a hybrid variant.

October Used Vehicle Prices Dip, New Vehicle Deliveries Slow

In their November 2017 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note wholesale depreciation declined by an average of 2.2 percent in October. The dip performed better than the 3.2 percent average price decrease recorded over the past five years for the period.