What contributes to the high resale values of Toyota and Honda vehicles?

Honda has been labeled as boring by its own engineers, while Toyota has been famously called boring by a chairman who is a descendant of the company's founder.

These two Japanese brands, Toyota's Lexus and Honda's luxury Acura brand, have enviably high resale values, retaining more of their purchase prices than any other brand.

It has been this way for years.

Since 2014, Toyota has been named the best resale value car eight times, including the last four years in a row. Lexus has won the award for luxury cars five times.

JD Power's residual awards list saw Lexus leading the luxury category, while Honda won the mainstream category.

These brands remain at the top due to their focus on pricing, production discipline, quality, durability, and a few other key factors.

Another crucial aspect for automakers is that Toyota and Honda pay close attention to customers' preferences and design vehicles accordingly.

According to Tyson Jominy, vice president of data analytics at J.D. Power, the market has a much greater demand for Toyota's products than what Toyota initially supplies, which leads to high resale values, keeping consumers satisfied. This cycle continues indefinitely.

In recent years, the auto industry has undergone significant changes, and the strengths that have helped brands succeed may now be hindering them, potentially causing them to lose their positions.

Watch the video to learn more.