Automotive Lease Guide, the nation's leader in setting automobile residual values, has named Honda the industry's top automotive brand with the highest overall residual values across its full range of models for the 2004 model year. Honda also received four individual segment awards: the Accord for the Midsize Car Segment; the Odyssey for the Minivan Segment; the CR-V for the Compact SUV Segment; and the Pilot for the CUV Segment. Both the Honda Odyssey and CR-V are repeat winners from last year.
Residual value performance measures the ability of a product to hold its value over time and is considered a key indicator of a product's long-term desirability. A strong residual value results in less depreciation over time, reducing cost of ownership.
"At Honda, we pride ourselves on delivering real value to our customers in terms of our long term quality, resale value and overall cost of ownership," said Dick Colliver, executive vice president of American Honda Motor Co., Inc. "This recognition by ALG really validates our strategy and the value our products deliver to the customer."
According to the ALG, its Residual Value Awards honor "those vehicles in each segment predicted to retain the highest percentage of their original price."
Financial institutions use ALG's figures to calculate how much it will cost to lease certain cars. The residual value is important to leasing because, in the simplest sense, a consumer pays for the amount of the car's value that they use.
"Residual Value performance continues to be a leading indicator of the success of a vehicle or brand," said John Blair, Automotive Lease Guide's chief executive officer. "ALG individual segment award winners represent a combination of desirability as new cars and long term appeal in the used vehicle marketplace. Honda has captured the industry brand award due to the strength of their entire product line, which is quite an accomplishment given the fierce competition in today's automotive industry."
Based in Santa Barbara, California, Automotive Lease Guide is a privately held company that has been forecasting automotive residual values for over 35 years in both the US and Canadian markets.