Three Hyundai models won top prizes in ALG’s 14th annual Residual Value Awards, based on 2013 models. The Hyundai Elantra won in the Compact Car category, and for the third year running; the Azera won in the Fullsize Car category. Meanwhile, the Santa Fe Sport took home gold in the Midsize Utility Vehicle class. Also, Hyundai’s residual values across all models ranked second overall among mainstream brands.
Magnificent! But what exactly is “residual value,” and what does it mean to the consumer?
As ALG defines it, it is the percentage of manufacturer’s suggested retail price (MSRP) a vehicle retains after three years of ownership. How is residual value different from depreciation? You use residual value to calculate depreciation, like this:
Depreciation = price – residual value
You want a high residual value if you plan to trade in a car or turn it in at the end of a lease: it gives you more buying power. You also want it as an indicator of quality. ALG calculates residual values using more than 100 factors, which include the perception of quality or brand value; simply put, how high the brand or models are esteemed. ALG President Larry Dominique called Hyundai’s ascent as a brand “Nothing short of impressive” when it comes to residual value. “Hyundai’s successful residual value retention has been driven by well-executed products, improved perception of quality and a disciplined approach to incentives and fleet,” two factors that can erode residual value. “Receiving Residual Value Awards for the Elantra, Azera and the redesigned Santa Fe Sport demonstrates that Hyundai continues to deliver on that promise.” Thanks, Larry! And thanks, ALG.
And while we’re at it – thanks to Strategic Vision, which just honored three Hyundai models in its 16th annual Strategic Vision Total Value Awards. The Hyundai Elantra sedan won in the small car category, Sonata among medium cars, and the Equus in the luxury segment, beating out competitors from BMW and Mercedes. Also, the Hyundai Equus took the award for Best Model, while Hyundai ranked second overall in Total Value. Strategic Vision calculates its Total Value Index (TVI) is based on perceived value, including quality and customer appeal. If you’re interested in a great new vehicle that will pay you back when it’s time to trade in, check out the range of Hyundai vehicles available at our Illinois Hyundai dealership.