Why Residual Values Matter

When buying or leasing a car, one of the most critical factors to consider is its residual value. Residual value refers to the estimated worth of a vehicle at the end of its lease term or after several years of ownership. Understanding this concept is essential because depreciation—the decline in a car’s value over time—can significantly impact your finances.

2008 Tesla Roadster

$180000

electric

33000 mi

Good Deal  

0 (5)

2024 Bentley Bentayga

$270257

Gas

36 mi

Good Deal  

0 (5)

2023 Tesla Model Y

$37391

electric

15121 mi

Very Good Deal  

0 (5)

See More

For consumers, vehicles with high residual values offer several advantages:

• Lower Lease Payments: Cars with strong residual values often result in lower monthly lease payments since the depreciation cost is minimized.
• Higher Resale Value: If you plan to sell or trade in your vehicle, a high residual value means more money back in your pocket.
• Better Long-Term Investment: Vehicles that retain their value well are often more reliable and in demand, making them a smarter long-term investment.

At MotorVero, we leverage data from industry experts like ALG to help you identify which models are forecast to hold their value best. This ensures you get the most out of your investment.

--TOP ADVERTISEMENT HERE--

How Residual Values Are Calculated

Residual values are determined by analyzing several factors, including:

• Vehicle Performance: How well the car performs in terms of reliability, fuel efficiency, and overall quality.
• Brand Reputation: Brands with a strong reputation for durability and customer satisfaction tend to have higher residual values.
• Market Demand: Popular models with high demand often retain their value better.
• Product Competitiveness: Features, technology, and design that set the vehicle apart from competitors.

By evaluating these factors, MotorVero provides you with accurate insights into which cars are likely to hold their value over time.

2023 Acura MDX

$48995

Gas

19096 mi

Good Deal  

0 (5)

2018 Audi A4 Allroad

$24198

Gas

65824 mi

Good Deal  

0 (5)

Toyota Grand Highlander

$55278

Gas

0 mi

Very Good Deal  

0 (5)

See More

2023 Residual Value Award Winners

Each year, MotorVero collaborates with ALG to recognize the vehicles that are projected to retain the highest percentage of their original MSRP over a three-year period. The 2023 Residual Value Awards highlight the best-performing models across 27 vehicle segments, including a new category for Premium Subcompact Utility vehicles.

Key Highlights from the 2023 Awards

• Mainstream Brand Winner: Honda continues to dominate the mainstream category with models like the Honda Accord and CR-V, known for their reliability and strong resale value.
• Premium Brand Winner: Land Rover reclaims the top spot in the premium category, thanks to its luxurious yet durable SUVs.
• Repeat Winners: The Jeep Wrangler, Subaru WRX, and Volvo V90 make repeat appearances, proving their enduring appeal and value retention.
• --FIRST CONTENT ADVERTISEMENT HERE--
  

Below is the full lineup of 2023 Residual Value Award winners:

How to Use Residual Values When Buying or Leasing a Car

Understanding residual values can help you make smarter financial decisions when purchasing or leasing a vehicle. Here’s how:

For Buyers

• Choose Models with High Residual Values: These vehicles will depreciate less, ensuring you get a better return if you decide to sell or trade in later.
• Consider Long-Term Costs: A car with a high residual value often has lower ownership costs over time.
• 

  2025 BMW i4 xDrive40

  $66295

  electric

  9 mi

  Fair Deal  

  0 (5)

  

  2017 Cadillac ATS

  $19565

  Gas

  26281 mi

  Fair Deal  

  4 (5)

  

  2020 Lincoln Aviator

  $40843

  Gas

  25714 mi

  Very Good Deal  

  0 (5)

  See More
  
  

For Lessees

• Lower Monthly Payments: Cars with strong residual values typically have lower lease payments.
• Minimize End-of-Lease Costs: A higher residual value reduces the likelihood of owing additional fees at the end of your lease.

MotorVero’s tools and resources make it easy to compare residual values and find the best options for your needs.

Tips for Maximizing Your Car’s Resale Value

Whether you’re planning to sell or trade in your vehicle, these tips can help you maximize its resale value:

• Regular Maintenance: Keep up with routine maintenance to ensure your car remains in top condition.
• Keep Mileage Low: Lower mileage vehicles typically have higher resale values.
• Protect the Interior and Exterior: Use seat covers, floor mats, and regular washes to keep your car looking new.
• Document Service History: A well-documented service history can increase buyer confidence and resale value.
• --SECOND CONTENT ADVERTISEMENT HERE--
  

Why Trust MotorVero?

MotorVero is your trusted partner in making informed vehicle decisions. With access to industry-leading data and tools, we provide:

• Accurate Residual Value Forecasts: Our partnership with ALG ensures reliable and up-to-date information.
• Comprehensive Vehicle Comparisons: Easily compare models based on residual values, features, and pricing.
• Expert Insights: Our team of automotive experts is here to guide you every step of the way.

Ready to find your next car? Explore MotorVero’s tools today and make a decision you won’t regret.

2021 Lincoln Aviator

$37520

Gas

52920 mi

Good Deal  

0 (5)

Rolls-Royce Cullinan AWD

$359180

diesel

12000 mi

Good Deal  

5 (5)

Audi e-tron GT

$15773427

electric

54466 mi

Fair Deal  

0 (5)

See More