The 2021 Ford Bronco has faced its fair share of challenges in what is the first year of production for the sixth-generation model, though the model is still in high demand and racking up accolades at the same time. As it turns out, that popularity and the relative scarcity of 2021 Ford Bronco models has also led to higher residual values for the rugged SUV, according to J.D. Power, which just released its 2022 U.S. ALG Residual Value Awards. In that regard, the Ford Bronco took home top honors in the Off-Road Utility segment, beating out its chief rivals, the Jeep Wrangler and Toyota 4Runner.
Higher residual values are desirable for those who want to lease a new vehicle, as they can help keep payments down since those vehicles don’t depreciate as much over the lease period. That is, if the vehicle isn’t subjected to heavy dealer markups or incentives impacting the sales price. Unfortunately, the limited supply of 2021 Broncos, coupled with high demand, has led to some pretty extreme dealer markups across the country in recent months.
There are a number of other variables that affect the residual value of a vehicle over a multi-year lease term, including mileage, quality, reliability, options, features, weather, and the current macroeconomic environment. Lessees essentially pay the difference between the purchase price and the vehicle’s residual value once the lease period ends, divided by the term of the lease.
The 2022 Ford Bronco may have a hard time retaining the residual value title next year, however. As Ford Authority reported last month, the entire Bronco lineup will get a bit more expensive for the new model year, while some options will increase in price as well. As a result, the 2022 Bronco’s lease residuals are lower than the 2021 model, as Ford Authority reported just a few weeks ago. Meanwhile, 2022 Bronco production is currently scheduled to begin at the Ford Michigan Assembly Plant on December 15th, 2021.