– ALG, the benchmark for forecasting future vehicle values and the analytics division of TrueCar, Inc. (NASDAQ: TRUE), announced winners of its 2016 annual Residual Value Awards, ranking Land Rover and Subaru as the top Premium Brand and Mainstream Brand, respectively.
ALG’s Residual Value Awards (RVA) recognize vehicles in 26 segments that are forecast to retain the highest percentage of their Manufacturer’s Suggested Retail Price (MSRP) after a three-year period. This year’s recipients were chosen from 2016 model year vehicles on sale that have shown strong value in their competitive segments. The awards will be presented to automakers this week at the Los Angeles Auto Show.
“Residual values are a key indicator for the market success of a vehicle, factoring in quality, product execution and brand desirability as primary drivers of ALG’s forecast,” said Larry Dominique, president of ALG and executive vice president of TrueCar. “With depreciation being the single biggest expense of vehicle ownership, informed consumers are aware of the importance of residual values when making their purchase decision. Consequently, an ALG Residual Value Award is a meaningful differentiating asset in the hyper-competitive automotive landscape.”
Land Rover’s top ranking among Premium manufacturers is its second consecutive win. Consumer demand for Land Rover products has increased following a newly expanded lineup and enhanced luxury amenities, resulting in limited incentive spending and high residual values. Land Rover models also won in three segments this year: Range Rover, Range Rover Sport and Discovery Sport.
Among Mainstream brands, Subaru models captured five segment awards, a majority of the segments within which the brand competes. Three of its models — the WRX, Legacy and Outback — are back-to- back winners. Toyota models also received five segment awards, including the company’s Tacoma pickup, a perennial winner. Additionally, Honda received segment awards for four vehicles, while Toyota’s Lexus luxury brand was awarded three.
