Toyota, Lexus named top brands for residual value in Canada

J.D. Power’s 2025 awards predict the top models to retain their value after three or four years

  • Toyota and Lexus are the top brands for residual value in Canada, according to J.D. Power
  • General Motors took nine individual awards for its vehicles across its brands
  • “Residual” is a vehicle’s predicted value in future, and is a factor in total cost of ownership

Toyota and Lexus were named the top brands in the J.D. Power 2025 Canada ALG Residual Value Awards, marking those companies’ sixth and fifth consecutive years, respectively, for the honour. The awards are for vehicles projected to hold the highest percentage of their MSRP (manufacturer’s suggested retail price), which is a bonus for owners when they later sell or trade them in.

That residual value is calculated by looking four years ahead for mainstream vehicles, and three years for premium models; and is considered an important factor in a vehicle’s total cost of ownership. In addition to the top brands, J.D. Power also gives individual awards to the top vehicles in each category, and this year, Toyota took the highest number, with seven awards. General Motors took nine awards in total, but spread across three of its brands.

“Preeminent brands such as Toyota and Lexus have shown they can strategically make select updates or redesigns to their vehicles, while retaining elements that deliver strong residual value,” said Danny Battaglia, managing director of ALG customer success at J.D. Power. “Additionally, these top brands’ awareness and tactical approach to pricing trim levels and powertrains also helps raise the residual performance, and provides long-term value for shoppers that are buying in a competitive market.”

The 2025 winners are as follows.

To be eligible for a brand award, an automaker must have model entries in at least four different vehicle segments. The model averages are weighted based on percentage share relative to the automaker’s entire model line, to account for differences across the trim levels. The residual value calculated is the same whether the vehicle is financed, leased, or paid with cash.

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