August 23, 2018
Lexus and Porsche are among the luxury auto brands to come out on top in J.D. Power’s latest analysis of the top marques for resale value today.
The J.D. Power 2018 Resale Value Awards selected the top auto brands that present a worthwhile investment for consumers today. Among luxury automakers, Lexus and Porsche were recognized as winners in the categories of premium car, large premium car and premium sporty car.
"This marks the first time J.D. Power is utilizing our transaction database of customer insights to recognize brands and models with the best resale value," said Jonathan Banks, vice president of vehicle valuations and analytics at J.D. Power, Costa Mesa, CA. "We conducted this analysis to provide consumers with a resource that informs them of the depreciation cost they incur when purchasing a new vehicle, thus providing insight on the value of their purchase."
For luxury consumers making big purchases, the decision is not just about what car will be the most satisfying immediately, but which will be the best long-term investment. One of the best ways to determine that is through looking at a brand or model’s resale value.
J.D. Power observed almost 250 different models of cars using more than 650,000 samples of transactions to determine which cars had the best resale values.
The winners from the report. Image credit: J.D. Power
Lexus dominated the report, with five different models winning the top spot in their specific category. Specifically, the Lexus IS, Lexus NX, Lexus LS, Lexus GS and Lexus GX were all selected as cars with high trade-in values.
While mass brands also performed strongly, Land Rover and Porsche were two other luxury brands to be ranked near the top.
Resale has become a major factor in other sectors of the luxury business, mainly fashion.
The fashion market category that relies on consigning high-end apparel and accessories is witnessing a period of enormous growth, outpacing the full-price segment of its industry by 20 percent, according to a report from Fung Global Retail & Technology.
The entire resale industry is expected to grow from $18 billion in 2016 to $33 billion by 2021. This data comes from retail think tank Fung Global Retail & Technology, which released the "Fashion Re-Commerce Update" report to dig into exactly how and why this sector has been taking off (see story).
But auto resale is also important, given that cars typically have a longer ownership period than apparel or accessories.
Lexus has a new campaign, "Performance, Crafted to the Extreme," which speaks to its craftsmanship. Image credit: Lexus
Lexus has been hard at work producing new models that will continue its resale-ready trend. Lexus is producing the new 2019 Lexus ES 350 at its facility in Georgetown, KY to take advantage of the plant's manufacturing technology.
The ES 350, which will be in showrooms this September, is the latest in Lexus’ line of luxury vehicles produced at the Kentucky factory. The Georgetown factory recently received a platinum award from J.D. Power & Associates to mark the excellence and quality of the vehicles produced there (see story).