Honda has taken away the coveted ALG Mainstream Residual Value Brand award from Subaru. It’s a big deal because Subaru held the title 4 years running since 2016. Honda last won the award in 2014 and Toyota took home honors in 2015. There are also four Honda models that win their respective segment awards.
In addition to Honda's recognition as the Best Overall Mainstream Brand, the 2020 Honda Accord sedan wins the Mid-size passenger car award (3rd year in a row), Fit takes Subcompact (sixth year in a row), Odyssey wins Minivan (retains its top spot), Pilot Midsize Utility 3-Row (2nd year) and the all-new Passport Midsize Utility 2-Row leads the pack for the first time.
2020 Honda Accord
What does it mean for shoppers?
ALG, an industry leader in forecasting new vehicle depreciation, says the Honda lineup is projected to retain its value the strongest after three years of ownership compared to any mainstream auto brand, and now better than Subaru the previous overall lineup leader.
If you are buying or leasing a new Honda vehicle, shoppers can expect to get more value for their vehicle when they trade it in over another brand. This could potentially save you hundreds of dollars when you go to sell your vehicle or at trade-in, because it’s that much less you have to finance on the new car you buy or lease.
2020 Honda Pilot
This is not an exact science, but ALG’s Residual Value awards are what you might call a formal prediction of the future. They are more forward-looking by definition, based not only on used-vehicle auction pricing but also a long list of other factors like current transaction prices, the value of improvements to new models, and the significance of a redesign.
If you buy a Honda vehicle, and it has a better resale trade-in value you will be happier than if it drops like a rock. Shoppers who are most interested in saving money should look at the brand and individual models with the highest retained residual values. Vehicles like the 2020 Honda Accord, Fit, Odyssey, Pilot, and Passport are predicted to hold their value best after three or four years.
Denis Flierl has invested nearly 30 years in the automotive industry in a variety of roles. All of his reports are archived on our TN Honda page and be sure to follow Denis on Facebook, Twitter, Instagram. Check back tomorrow for more Honda news and updates.
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Photo credit: Honda USA