Learn how J.D. Power ALG Residual Value Awards work, which Lexus models won from 2021 through 2026 and how residual value can affect leases and trade-ins.

 

 

When comparing luxury vehicles, shoppers naturally look at purchase price, monthly payment, features, reliability and fuel economy. One financial factor that may be less obvious—but can have a major effect on the cost of ownership—is residual value.

Residual value is the projected amount a vehicle may be worth after a specific ownership period. A vehicle expected to retain more of its original value may experience less depreciation, provide greater trade-in flexibility and, in some cases, support more competitive lease payments.

That is where the J.D. Power U.S. ALG Residual Value Awards come in.

The awards recognize vehicles projected to retain the highest percentage of their original manufacturer’s suggested retail price after three years of ownership. Lexus has earned repeated brand-level and model-level recognition, with vehicles including the IS, LS, NX, RX, TX and LX receiving awards in recent years.

However, the award results require some explanation. A J.D. Power ALG award is a forecast rather than a guaranteed future trade-in value, and a Lexus model does not need to win its category every year to retain value well.

Here is what Lexus shoppers should know.

What Is ALG?

ALG originated as the Automotive Lease Guide, an automotive-industry resource specializing in vehicle residual-value forecasting. It has been producing vehicle-value projections for more than 50 years.

J.D. Power completed its acquisition of ALG in November 2020 and integrated ALG into its automotive data and analytics business. J.D. Power stated that combining its transaction data and vehicle analytics with ALG’s forecasting expertise would strengthen its ability to predict future vehicle values.

Today, ALG operates as J.D. Power’s residual-value forecasting division.

According to J.D. Power, ALG residual forecasts inform approximately 40% of new-vehicle launches in North America and nearly all lease transactions in the United States.

What Is a Vehicle’s Residual Value?

A residual value is the estimated future wholesale value of a vehicle, typically at the end of a lease.

For example, imagine a luxury SUV with an original MSRP of $60,000 and a projected three-year residual value of 60%. Its estimated residual value would be $36,000.

The remaining $24,000 represents the projected depreciation during that period.

This does not mean the SUV is guaranteed to be worth exactly $36,000 after three years. Actual value will depend on mileage, condition, accident history, equipment, location, used-vehicle demand and the economy.

J.D. Power identifies factors such as mileage, reliability, features, pricing, used-vehicle supply, market strategy, seasonality and economic conditions as variables that can affect actual residual value.

What Do the J.D. Power ALG Awards Measure?

The U.S. ALG Residual Value Awards recognize the models forecast to retain the highest percentage of their original MSRP at wholesale auction after three years.

The awards are divided into vehicle segments so that similar models compete against one another. A compact luxury SUV competes against other compact luxury SUVs rather than against full-size SUVs, sports cars or pickup trucks.

The analysis is based on factors that include:

• Historical used-vehicle performance
• Brand strength and future outlook
• Product competitiveness
• New-vehicle pricing
• Trim-level mix
• Powertrain strategy
• Manufacturer incentives
• Expected used-vehicle supply
• Vehicle features and equipment
• Broader economic conditions

Model averages are sales-weighted to account for the percentage of total sales represented by different trim levels. J.D. Power also requires enough competing models within a segment before presenting a segment-level award.

Are ALG Awards Based on Owner Surveys?

No.

This is an important distinction because many well-known J.D. Power studies are based on feedback from vehicle owners. The ALG Residual Value Awards are different.

They are based on vehicle-value forecasting, market performance and industry data rather than customer-satisfaction surveys.

Therefore, an ALG award does not directly measure whether owners like their vehicles or how many mechanical problems they have experienced. Quality, reliability and desirability may influence the forecast, but the final award is based on projected value retention.

Why Do ALG Awards Matter to Car Buyers?

Residual value can affect customers whether they lease, finance or pay cash.

Potentially Lower Depreciation

Depreciation is often one of the largest costs of owning a new vehicle. A model projected to retain a larger percentage of its original price may lose less value over the same period than a competing model with a weaker forecast.

Greater Trade-In Flexibility

A vehicle that retains value well may provide more trade-in equity, although the remaining loan balance must also be considered.

Possible Leasing Benefits

A lease payment is based partly on the difference between the vehicle’s adjusted cost and its projected end-of-lease value.

A stronger residual value generally means less projected depreciation must be included in the lease payment. However, the money factor, incentives, selling price, mileage allowance, taxes and fees also affect the final payment. J.D. Power describes residual values as a major component in how automakers establish leasing costs.

Indication of Used-Vehicle Demand

A strong residual-value forecast may reflect expectations that pre-owned customers will continue wanting the model several years after it was sold new.

Lexus J.D. Power ALG Award History: 2021–2026

Lexus has received significant U.S. ALG recognition over the past several model years.

Award year	Lexus brand-level result	Lexus model-level winners
2021	Top Premium Brand	LS, IS and RX
2022	Top Premium Brand	NX
2023	Top Premium Brand	IS and LX
2024	Top Premium Brand	IS, NX, LX and RX
2025	Top Premium Brand	IS, LS, NX, RX and TX
2026	No U.S. premium-brand award	NX, RX and LX

The 2021 ALG awards were announced shortly before J.D. Power completed its acquisition of ALG. Lexus was named the top premium brand, while the LS, IS and RX won their respective segments.

For 2022, Lexus received the J.D. Power U.S. ALG award for the top premium brand. The NX was the brand’s individual segment winner. J.D. Power noted that Lexus achieved the highest overall premium-brand result despite having only one model-level winner, demonstrating strength across its broader lineup.

For 2023, Lexus earned the premium-brand award for a third consecutive year, and the IS and LX received model-level awards.

For 2024, Lexus was again named the top premium brand. The IS, NX, LX and RX each won their respective vehicle segments.

Lexus had an especially strong performance in the 2025 awards. It received the top premium-brand award and earned more model-level awards than any other manufacturer, with wins for the IS, LS, NX, RX and TX.

For 2026, Lexus earned three model-level awards for the NX, RX and LX. Tesla received the overall premium-brand award, while Toyota received the mass-market brand award. Lexus therefore remained one of the most recognized manufacturers at the model level, but it did not receive the U.S. premium-brand award that year.

Which Lexus Has Won the Most Recent ALG Awards?

Between the 2021 and 2026 U.S. award years, the Lexus models with the most repeated recognition were:

Lexus model	U.S. ALG winning years
Lexus IS	2021, 2023, 2024 and 2025
Lexus RX	2021, 2024, 2025 and 2026
Lexus NX	2022, 2024, 2025 and 2026
Lexus LX	2023, 2024 and 2026
Lexus LS	2021 and 2025
Lexus TX	2025

These results show that Lexus’ award history is not limited to one body style. Compact and midsize SUVs, full-size SUVs, sport sedans, flagship sedans and three-row SUVs have all received recognition.

Lexus NX ALG Residual Value Awards

The Lexus NX has one of the strongest recent ALG records in the Lexus lineup.

It received U.S. model-level awards for:

• 2022
• 2024
• 2025
• 2026

The NX competes in the compact premium SUV category and is available with gasoline, hybrid and plug-in hybrid powertrains.

Its combination of manageable size, available all-wheel drive, luxury equipment and multiple powertrain choices can help it appeal to a broad range of new- and pre-owned-vehicle shoppers.

The NX won its category in three consecutive award years from 2024 through 2026.

Lexus RX ALG Residual Value Awards

The Lexus RX received U.S. ALG awards for:

• 2021
• 2024
• 2025
• 2026

The RX is one of the most established nameplates in the midsize luxury crossover market. Its broad customer appeal, recognizable name and availability with multiple powertrains can contribute to continued pre-owned demand.

Like the NX, the RX won its segment for three consecutive award years from 2024 through 2026.

Lexus IS ALG Residual Value Awards

The Lexus IS received U.S. ALG awards for:

• 2021
• 2023
• 2024
• 2025

The IS competes in the compact premium car segment and offers an alternative for shoppers who prefer a sport sedan over a luxury crossover.

Its repeated ALG recognition demonstrates that residual-value strength is not limited exclusively to Lexus SUVs.

Lexus LX ALG Residual Value Awards

The Lexus LX received U.S. ALG awards for:

• 2023
• 2024
• 2026

The LX is Lexus’ flagship body-on-frame SUV. It combines luxury appointments with towing capability and off-road-oriented engineering.

Because the LX has a high original MSRP, shoppers should examine both the percentage of value retained and the actual dollar amount of depreciation. A luxury vehicle can perform strongly within its category while still losing a substantial amount in absolute dollars.

Lexus LS ALG Residual Value Awards

The Lexus LS won U.S. ALG awards for:

• 2021
• 2025

The LS competes in the flagship premium sedan market. This category can experience significant depreciation because of high original prices, limited used-vehicle demand and rapid changes in luxury technology.

Winning its segment indicates that the LS was projected to retain the strongest percentage of MSRP among the qualifying vehicles in its class for those award years. It does not mean an LS will lose fewer dollars than a lower-priced Lexus model.

Lexus TX ALG Residual Value Award

The Lexus TX received a U.S. ALG Residual Value Award for 2025.

The TX is a newer three-row Lexus SUV designed to provide greater passenger and cargo space than the RX. Its 2025 recognition showed that ALG expected the model to perform strongly within its competitive segment despite having a shorter used-market history than established Lexus nameplates.

Because it is a relatively new model, longer-term transaction history will continue developing as more TX vehicles enter the pre-owned market.

What About the Lexus GX?

The Lexus GX did not receive a U.S. model-level ALG Residual Value Award from 2021 through 2026.

That does not establish that the GX has weak resale value.

Only one model—or a tie for first—normally receives the award in each qualifying segment. The GX may also face different competitors depending on how J.D. Power defines the segment for a particular award year.

The GX occupies a specialized market with body-on-frame construction, off-road capability and luxury features. Actual GX values can still be influenced by availability, mileage, condition, trim, equipment and regional demand.

An award list should be treated as one research source rather than a complete appraisal of every vehicle.

What About the Lexus ES?

The Lexus ES did not receive a U.S. model-level ALG award between the 2021 and 2026 award years.

However, the ES competes in a different market from the IS, LS and Lexus SUVs. Used-luxury-sedan demand, fleet supply, powertrain choice, pricing and changing consumer preferences can all influence its residual-value forecast.

The absence of an annual segment award means another qualifying model received a stronger forecast in that category. It does not mean the ES has no resale-value advantages.

What About the Lexus UX?

The Lexus UX did not receive a U.S. ALG model-level award between 2021 and 2026.

Customers may occasionally see reports stating that the UX received an ALG award, but those reports may refer to the Canadian awards. The U.S. and Canadian ALG programs are separate and may use different vehicle segments, market data and ownership periods.

For example, the UX received a 2026 Canada ALG Residual Value Award, but it was not one of Lexus’ three U.S. winners for 2026. Lexus’ U.S. winners that year were the NX, RX and LX.

What About the Lexus LC?

The Lexus LC did not receive a U.S. model-level ALG award from 2021 through 2026.

The LC occupies a lower-volume luxury grand-touring and performance category. Its market value may depend heavily on mileage, condition, specifications, color combination, production volume and demand from enthusiast buyers.

Specialty vehicles may behave differently from high-volume SUVs. Certain examples may be especially desirable, but rarity by itself does not guarantee appreciation or a specific future value.

What About the Lexus RZ?

The Lexus RZ did not receive a U.S. model-level ALG award through the 2026 award year.

Battery-electric vehicles can present additional forecasting challenges because their values may be affected by:

• New-vehicle price reductions
• Government incentives
• Charging improvements
• Battery technology
• Driving-range increases
• Used-EV supply
• Consumer demand
• Leasing strategies

J.D. Power has stated that the growth of EVs and their different depreciation patterns make precise residual-value forecasting increasingly important.

The RZ should therefore be compared with similar premium electric vehicles rather than automatically being expected to follow the same depreciation pattern as the NX, RX or GX.

What About the Lexus RC and Discontinued Lexus Models?

The current J.D. Power ALG award history should not be confused with J.D. Power’s earlier U.S. Resale Value Awards.

In 2019, before J.D. Power acquired ALG, Lexus received six model-level J.D. Power Resale Value Awards for the CT, RC, GS, NX, RX and LX. Those awards were based on observed wholesale transactions involving three-year-old vehicles rather than ALG’s forward-looking model-year forecast.

In 2020, the GS, LX, NX and RX received J.D. Power U.S. Resale Value Awards. The calculations used wholesale records for 2017 model-year vehicles that were three years old at the time.

These earlier awards provide useful historical context, but they should not be presented as J.D. Power ALG Residual Value Awards because the programs used different methodologies.

Why Did Lexus Not Win the 2026 Premium-Brand Award?

Tesla received the 2026 U.S. ALG award for the top premium brand, while Lexus received three individual model awards.

J.D. Power attributed Tesla’s brand-level result partly to restrained incentives relative to other luxury electric-vehicle manufacturers and strong forecasts for the Model 3, Model Y and Cybertruck.

This does not mean every Tesla was projected to outperform every Lexus or that Lexus suddenly developed poor residual value.

Brand-level and model-level awards measure different things. A manufacturer can have several segment-winning models without receiving the overall brand award. Lexus demonstrated this in 2026 with wins for the NX, RX and LX.

Similarly, Lexus won the 2022 premium-brand award while having only one individual model winner. J.D. Power explained that Lexus performed consistently across its lineup even though the NX was its only segment winner.

Why Do Lexus Winners Change Each Year?

Award results can change because the models, competition and market conditions change.

Factors may include:

• A redesigned Lexus or competing model
• New trim levels
• MSRP increases
• Manufacturer rebates and incentives
• Changes in standard equipment
• Gasoline, hybrid, plug-in hybrid or electric powertrains
• Expected leasing volume
• Rental-fleet exposure
• Used-vehicle supply
• Consumer demand
• Interest rates
• Fuel prices
• Economic conditions

J.D. Power cited Lexus’ balanced approach to trim levels and powertrains as a factor in its 2024 performance. For 2025, J.D. Power specifically noted that Lexus’ restraint with incentives supported resale values because aggressive incentives on new vehicles can reduce the value of similar used models.

Does an ALG Award Guarantee Strong Trade-In Value?

No.

The award is a forecast at the model-line level. It is not a guaranteed appraisal for every vehicle.

Two examples of the same Lexus model and year may have very different values because of:

• Mileage
• Accident history
• Mechanical condition
• Maintenance records
• Tire condition
• Interior and exterior wear
• Trim level
• Factory equipment
• Color combination
• Geographic location
• Number of previous owners
• Current market demand

A vehicle can also be purchased above MSRP or with expensive optional equipment that does not return its full cost at trade-in.

The award identifies a model projected to retain a strong percentage of MSRP within its category. It does not guarantee that every owner will receive a profit, positive equity or a specific trade-in amount.

Is Residual Value the Same as Resale Value?

The terms are related but not identical.

Residual value usually refers to a projected future wholesale value, commonly used when structuring a lease.

Resale value usually refers to what a vehicle is actually expected to sell or trade for in the current market.

An ALG award uses a forward-looking residual-value forecast. When the vehicle reaches the end of the forecast period, its actual resale or wholesale value may be higher or lower than projected.

Does a Higher Residual Always Mean a Better Lease?

Not necessarily.

A higher residual can reduce the depreciation portion of a lease payment, but several other factors matter:

• Negotiated selling price
• Money factor
• Lease incentives
• Acquisition fee
• Mileage allowance
• Lease term
• Taxes
• Registration fees
• Amount due at signing

A vehicle with a lower residual but a large lease incentive could sometimes have a lower payment than a vehicle with a stronger residual and little discount.

In addition, the residual percentage written into a customer’s lease agreement is established by the lender for that exact vehicle, term and mileage allowance. It may not be identical to the figure used for an annual industry award.

How Can Lexus Owners Protect Their Vehicle’s Value?

An award-winning model can still lose unnecessary value when it is poorly maintained.

Owners can help protect their Lexus by:

Following the Recommended Maintenance Schedule

Complete maintenance at the proper time and mileage intervals, and keep the service records.

Repairing Damage Promptly

Address cracked glass, damaged wheels, dents and interior damage before they become worse.

Maintaining the Tires

Worn, mismatched or damaged tires may reduce an appraisal because the next owner or dealer will need to replace them.

Keeping the Interior Clean

Smoke, stains, pet damage, odors and excessive sun exposure can significantly affect marketability.

Avoiding Highly Personalized Modifications

Major suspension changes, engine tuning, oversized wheels and permanent cosmetic alterations may limit the number of interested buyers.

Keeping the Original Equipment

Retain all keys, charging cables, cargo covers, manuals, wheel-lock keys and factory accessories.

Monitoring Mileage

Mileage is not the only valuation factor, but unusually high mileage will generally reduce the value of a vehicle compared with similar examples.

Frequently Asked Questions About J.D. Power ALG Awards

What does ALG stand for?

ALG originated as Automotive Lease Guide, a company known for forecasting vehicle residual values. It is now part of J.D. Power’s automotive data and analytics business.

What is the J.D. Power ALG Residual Value Award?

It recognizes the vehicles projected to retain the highest percentage of their original MSRP at wholesale auction after three years of ownership within their respective segments.

Is the ALG award based on reliability?

Not exclusively. Reliability can influence used-vehicle demand and residual value, but the award also considers used-market performance, brand outlook, pricing, features, incentives, supply and product competitiveness.

Is the ALG award based on owner opinions?

No. It is a data-based residual-value forecast rather than an owner-satisfaction survey.

Which Lexus models won the 2026 U.S. ALG awards?

The Lexus NX, RX and LX received 2026 U.S. model-level ALG Residual Value Awards.

Did Lexus win the 2026 premium-brand award?

No. Tesla received the 2026 U.S. premium-brand award. Lexus still received three individual model awards.

Which Lexus models won the most 2025 ALG awards?

Lexus received five model-level awards for the IS, LS, NX, RX and TX. Lexus also received the overall premium-brand award for 2025.

Which Lexus models have won repeatedly?

The IS, NX and RX each received four U.S. ALG model-level awards between 2021 and 2026. The LX received three awards, the LS received two and the TX received one.

Why does a model disappear from the winners list?

Another competing model may receive a stronger forecast, the category may change, or pricing, incentives, equipment, supply and market conditions may affect the projection.

Does not winning mean a Lexus depreciates badly?

No. Only the highest-ranked qualifying model receives the segment award. A second-place model could still retain value well compared with the broader luxury market.

Does J.D. Power publish the exact residual percentage for every winner?

The public award announcements generally identify the winning brands and models but do not always provide the exact forecast percentage for every vehicle. A segment win means the model had the strongest qualifying forecast under the award methodology.

Are U.S. and Canadian ALG awards the same?

No. The programs evaluate different markets. The U.S. awards use a three-year forecast, while the Canadian program uses four years for mass-market vehicles and three years for premium vehicles. Winners can therefore differ.

Does an ALG award affect my lease buyout price?

Your lease buyout is based on the residual value written into your signed contract. An annual ALG award does not change that contractual amount.

Can my Lexus be worth more than its lease residual?

Yes. If the actual market value is higher than the contractual buyout amount, the vehicle may have lease-end equity. Market values can also be lower than the contract residual.

Are ALG awards the same as Kelley Blue Book resale-value awards?

No. Both concern value retention, but they use different methodologies and forecast periods. J.D. Power ALG evaluates projected three-year wholesale value, while Kelley Blue Book’s Best Resale Value Awards generally use a five-year projection.

Are ALG awards the same as J.D. Power dependability awards?

No. The Vehicle Dependability Study measures problems reported by owners of three-year-old vehicles. ALG awards forecast future residual value using market and product data.

Which Lexus is best for resale value?

There is no single answer for every ownership period. The NX, RX, IS and LX have received repeated ALG recognition, but actual resale performance depends on the model year, purchase price, mileage, condition and market.

Can a high-priced Lexus still lose a lot of money?

Yes. A vehicle may retain the highest percentage of MSRP in its segment while still experiencing substantial depreciation in dollars because its original price was high.

Should an ALG award determine which Lexus I buy?

It should be one consideration rather than the only consideration. Customers should also evaluate seating, cargo capacity, fuel economy, performance, reliability, insurance, monthly payment and expected ownership period.

The Bottom Line

The J.D. Power ALG Residual Value Awards provide customers with a useful way to compare projected vehicle-value retention.

They recognize models expected to retain the highest percentage of their original MSRP after three years, based on market performance, product competitiveness, brand outlook and other economic and vehicle-specific factors.

Lexus has built a strong recent record in the awards.

Between 2021 and 2025, Lexus repeatedly received the top U.S. premium-brand award. Its model-level winners during the 2021–2026 period included the IS, LS, NX, RX, TX and LX. For 2026, the NX, RX and LX were recognized, even though Tesla received the overall premium-brand award.

An award is not a guarantee that every Lexus will have the same trade-in value. Mileage, condition, equipment, accident history and market demand still matter.

Nevertheless, repeated recognition across several Lexus cars and SUVs shows that projected value retention has been a consistent strength across multiple parts of the Lexus lineup.

Explore Award-Winning Lexus Models at Lexus of Concord

At Lexus of Concord, our team can help you compare Lexus models based on more than the purchase price or monthly payment.

We can discuss expected ownership length, annual mileage, available powertrains, current lease and finance programs and the factors that may influence future trade-in value.

Whether you are considering a Lexus NX, RX, LX, IS, TX or another model, visit Lexus of Concord in Concord, California, to explore our current selection of new and L/Certified Lexus vehicles.

J.D. Power ALG residual values are projections and are not guaranteed future wholesale, resale or trade-in values. Actual value depends on mileage, condition, equipment, history, geographic location, supply, demand and economic conditions. Award information in this article was current as of February 2026.