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A bit different than the iSeeCars list I posted a few weeks ago; this is based on 2017 cars currently being sold compared to their original purchase price rather than MSRP, with 592,000 transactions taken into account. The iSeeCars list was for 5-year-old cars and presumably used MSRP rather than original purchase price.
J.D. Power Announces Best Resale Value Awards for Mass Market and Luxury Vehicle Models
Honda and Toyota Each Receive Five Awards for Best Resale Value
04 November 2020Download Press ReleaseThe J.D. Power 2020 U.S. Resale Value Awards, recognizing the best resale value across 25 model-level vehicle segments following three years of ownership, were announced today. This is the third year J.D. Power has given these awards, which are based transaction data using customer insights. Included in this list is the model with the best overall resale value, the GMC Sierra 3500.
“Our transaction database shows which models have the lowest depreciation costs, hence providing consumers with a key component in the total cost of ownership of the vehicle they plan to purchase or sell,” said Jonathan Banks, vice president & general manager of vehicle valuations at J.D. Power. “Currently, wholesale prices remain strong and we expect prices will be greater than pre-virus levels by year’s end. However, given the volatility of the market, it’s more important for consumers to factor this information into their purchase decision.”
Model-Level Resale Value Awards
Honda and Toyota receive the most model-level awards, each with five. They are followed by Lexus (four model-level awards) and Chevrolet and Dodge, each with two model-level awards. The GMC Sierra 3500 has the best resale value in the industry.
Toyota: Toyota 4Runner; Toyota 86; Toyota Prius v; Toyota Tacoma; and Toyota Tundra
Lexus: Lexus GS; Lexus LX; Lexus NX; and Lexus RX
Chevrolet: Chevrolet Corvette and Chevrolet Tahoe
Dodge: Dodge Challenger and Dodge Charger
Other models that rank highest in their respective segments are Audi Q3, Genesis G90, GMC Sierra 3500, Infiniti Q60, Jeep Wrangler, Mercedes-Benz B-Class and Porsche Cayman.
For the 2020 award process, 270 vehicle models were evaluated using a sample of more than 592,000 transactions with an average of 2,200 data points assessed on each vehicle. The award selection process utilizes used vehicle wholesale prices, which represent how much a dealer pays for a used vehicle. These prices are then divided by the vehicle’s original purchase price. These calculations are based on wholesale records from May through September 2020 for vehicles that are three years old. For the 2020 calculation, 2017 is the applicable model year.
The K900 on the Large-Premium-Car list is quite interesting, considering how few of them are sold and the low demand for it.
The key is likely their relation to the Genesis G90 (which allegedly has the highest resale value in the segment), and the fact that they are made in such limited numbers (less than 500 sold in 2017) that it's akin to something like a supercar in how it holds its value.
What's more surprising is the fact that the LS didn't make the list. I'm not sure what happened there, especially as Lexus dominates the rest of the list.
What's more surprising is the fact that the LS didn't make the list. I'm not sure what happened there, especially as Lexus dominates the rest of the list.
The most likely reason is the downturn in the car's reputation that the LS500 got in relation to its LS460 predecessor.
I was actually surprised to see the GS on the list. I'm on my third and the value of the previous two at trade in time was nothing to write home about.
Of my 3 vehicles right now, the Tacoma is worth the least, but that won't always be the case. The value on the GS and Highlander will go down faster than the Tacoma. Used Tacomas around here, with fewer features than mine, are listed for more than I paid for mine new.
The most likely reason is the downturn in the car's reputation that the LS500 got in relation to its LS460 predecessor.
I don't see how a brand new model with nothing carried over from the old one would have an impact on the reputation of the old model. If anything, a new redesign of a certain model being poorly received would result in the older model going up in desirability and consequently resale value.
Last edited by Motorola; Dec 11, 2020 at 04:22 PM.
Because, compared to past models, the LS500 is a joke sales-wise. Even if I wanted to afford one, I would buy a CPO 2017 460 first, regardless of mileage, if I had to replace my 2008 tomorrow.
Because, compared to past models, the LS500 is a joke sales-wise. Even if I wanted to afford one, I would buy a CPO 2017 460 first, regardless of mileage, if I had to replace my 2008 tomorrow.
Yeah, that's my point. The older car would go up in value and desirability if the new one was not well-received, not the other way around.
I don't see how a brand new model with nothing carried over from the old one would have an impact on the reputation of the old model. If anything, a new redesign of a certain model being poorly received would result in the older model going up in desirability and consequently resale value.
It's not so much the reputation of past LS460 models that the new LS500 affecting...it's the value of used two or three-year-old 500 themselves. As Josh points out, the value of the LS460 still speaks for itself.
It's not so much the reputation of past LS460 models that the new LS500 affecting...it's the value of used two or three-year-old 500 themselves. As Josh points out, the value of the LS460 still speaks for itself.
That makes no sense. This is specifically for 2017 MY LS's. The LS500 was from 2018 onward.
That makes no sense. This is specifically for 2017 MY LS's. The LS500 was from 2018 onward.
Most likely, few 2017 LS models have been resold, and there probably isn't very much data to work with. It is an extremely reliable car, has very high owner-satisfaction, and, unless leased and turned back in (like Steve's LS460 was) the average owner is probably not going to be getting rid of it.
Most likely, few 2017 LS models have been resold, and there probably isn't very much data to work with. It is an extremely reliable car, has very high owner-satisfaction, and, unless leased and turned back in (like Steve's LS460 was) the average owner is probably not going to be getting rid of it.
I'm fairly certain most 2017 LS460's are leased and most have been returned for this year after the end of a three-year lease like most other flagship luxury sedans. Certainly, if the Kia K900 with its measly 400 sold in 2017 can make the list, than the LS460 has more than enough data with its 4,000 sold. For whatever reason, despite its excellent reputation, it did not hold its value.
Last edited by Motorola; Dec 11, 2020 at 09:36 PM.
The K900 on the Large-Premium-Car list is quite interesting, considering how few of them are sold and the low demand for it.
From the press release, seems like they compare it to the purchase price, which likely was heavily discounted. so the low demand has already been accounted for. Sounds like they're trying to measure actual cost of ownership. So original purchase price vs today's resale value. Not from an MSRP starting standpoint, in which case I'm sure the K900 and other heavily discounted and incentivized vehicles wouldn't do well.
J.D. Power 2020 3-Year Resale Value Assessment
