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Which Cars Better to Lease or Buy

When it comes to leasing, depreciation cost will be the largest portion of your monthly payment. Depreciation is the difference between what the vehicle is worth at time of lease, and what it's worth at the end of your lease (called Residual Value). So it makes sense to lease a car with low depreciation cost, or put another way - high residual value.

Residual value is calculated as a percentage of MSRP. The higher the percentage, the lower your depreciation cost during a lease. For example, if a car has an MSRP of $30,000 and the leasing company has calculated a residual value of 50% after 36 months, that means the total depreciation cost will be $15,000 (that's if you purchase the car at MSRP, which you better not do if you're reading RealCarTips - any price you negotiate below MSRP will reduce your overall depreciation cost).

Below, you'll find a list of the vehicles with the highest 36-month residual values. These are the vehicles you will be paying the least when it comes to depreciation - and which may be better to lease than to purchase, especially if you plan to keep it for only 3 years and not drive more than 12,000 miles per year. The vehicle with the best residual value right now is the 2024 Honda Ridgeline, with a residual value of 67% over 3 years. With an MSRP of $43,975 that means it will depreciate by only about $12,000 over 3 years (if you were to pay full MSRP).

Keep in mind residual values are best-guess estimates, and sometimes leasing companies set them higher than what they actually expect the vehicle to be worth (as a hidden incentive so lease payments are lower). And sometimes, market conditions change during the lease, and the actual worth of the vehicle ends up being way lower than the residual "guesstimate". Since the residual value is set in stone, this is why these vehicles may be a better choice to lease than purchase, especially the ones with residuals over 60%.

However, not all vehicles with high residual values offer good lease deals (due to other factors such as interest rates and other fees). For these types of deals, it's better to purchase the vehicle rather than lease - check out the final column in the table below to see if it's better to lease or buy the vehicle if you're planning to keep it short-term.

As always, I recommend using TrueCar No Haggle and CarsDirect to see the lowest prices your local dealers are willing to offer on these leases.

Better to Lease or Buy

Rank Vehicle Trim MSRP Lease Payment ($0 Down) Residual Better To...
1 2024 Honda Ridgeline RTL $43,975 $493 67.0% Lease
2 2024 Genesis GV70 Advanced $67,645 $749 66.0% Lease
3 2024 Toyota Prius Prime SE $34,409 $363 66.0% Lease
4 2024 Toyota 4Runner SR5 $45,119 $557 66.0% Buy
5 2023 Kia Niro EV Wind $40,875 $343 65.0% Lease
6 2024 Kia Niro EV Wind $40,925 $357 65.0% Lease
7 2024 Honda Passport EX-L $43,295 $534 64.0% Buy
8 2023 Honda Ridgeline RTL $43,175 $480 62.0% Lease
9 2024 Mazda CX-90 3.3 Turbo Preferred Plus $47,275 $563 61.0% Buy
10 2024 Hyundai Ioniq 6 SE $43,600 $478 59.0% Lease
11 2023 Hyundai Santa Fe SE $30,085 $373 59.0% Buy
12 2024 Kia EV6 Light $47,275 $488 59.0% Lease
13 2024 Hyundai Tucson SE $28,625 $355 58.9% Buy
14 2023 Mazda CX-30 2.5 S Preferred $29,595 $366 58.6% Buy
15 2024 Kia EV9 Light $60,695 $749 58.0% Buy
16 2023 Hyundai Nexo Limited $64,920 $748 58.0% Lease
17 2023 Mercedes EQE Sedan EQE 350+ $76,050 $869 56.0% Lease
18 2024 Genesis GV60 $53,195 $623 56.0% Buy
19 2024 Hyundai Ioniq 5 SE Standard Range $43,025 $473 55.9% Lease
20 2023 Infiniti Q50 Luxe $43,800 $532 55.0% Buy
21 2024 BMW i7 eDrive50 $106,695 $1,256 55.0% Buy
22 2023 Kia EV6 Wind $50,025 $488 55.0% Lease
23 2024 Hyundai Kona EV SE $34,050 $363 54.9% Lease
24 2023 Toyota RAV4 Prime SE PHV $46,414 $509 54.0% Lease
25 2023 Mercedes EQE SUV EQE 350+ $79,050 $932 54.0% Buy
26 2023 Mercedes EQS SUV EQS 450+ $105,550 $1,307 54.0% Buy
27 2023 Subaru Solterra Premium $46,220 $399 54.0% Lease
28 2023 Mercedes EQS Sedan EQS 450+ $105,550 $1,307 54.0% Buy
29 2024 BMW i4 eDrive35 $54,545 $613 54.0% Lease
30 2023 Nissan Ariya Engage $45,080 $493 53.0% Lease
31 2024 BMW iX xDrive50 $90,595 $956 53.0% Lease
32 2023 Ford Mach-E Select $44,795 $477 52.0% Lease
33 2023 Mercedes EQB EQB 250+ $55,150 $632 49.0% Lease
34 2023 Toyota bZ4X XLE $46,624 $480 45.0% Lease
35 2024 Jeep Grand Cherokee L Laredo $45,925 $530 % Lease
36 2024 Chevrolet Equinox LT $31,765 $328 % Lease
37 2024 Volvo S90 B6 Plus $59,495 $702 % Buy
38 2024 Audi Q5 e 55 S line Premium $58,995 $626 % Lease
39 2023 Chevrolet Equinox LT $29,970 $320 % Lease
40 2023 Jeep Grand Cherokee Laredo $41,925 $397 % Lease
41 2024 Jeep Wrangler 4xe Willys $60,915 $496 % Lease
42 2024 Chevrolet Traverse ltd LT $36,497 $384 % Lease
43 2024 Audi Q8 e-tron Sportback S line Premium $79,480 $795 % Lease
44 2023 Jeep Grand Cherokee L Limited $54,685 $579 % Lease
45 2023 Volvo C40 Recharge Twin Core $56,395 $549 % Lease
46 2024 Audi A6 45 Premium $58,395 $714 % Buy
47 2024 GMC Hummer ev pickup e4WD 3X $107,824 $1,309 % Buy
48 2024 Jeep Grand Cherokee 4xe $61,660 $589 % Lease
49 2024 Cadillac CT4 excluding V Premium Luxury $41,565 $492 % Buy
50 2024 Audi Q4 e-tron 40 Premium Plus $55,695 $604 % Lease
51 2023 Audi Q4 e-tron 50 Premium $58,895 $585 % Lease
52 2023 Jeep Gladiator Sport S $52,795 $571 % Lease
53 2024 Jeep Wrangler 4-door Sport $42,450 $478 % Lease
54 2023 Toyota Highlander LE $41,955 $504 % Buy
55 2024 Chevrolet Silverado 1500 Custom $47,420 $476 % Lease
56 2024 Audi Q8 e-tron Premium $78,035 $723 % Lease
57 2023 Chevrolet Traverse LT $39,315 $463 % Buy
58 2023 Jeep Grand Cherokee 4xe $62,255 $538 % Lease
59 2023 Volkswagen ID.4 PRO $43,995 $480 % Lease
60 2023 GMC Sierra 1500 Short Elevation $59,070 $516 % Lease
61 2023 Volvo XC40 Recharge Twin Core $54,645 $617 % Lease
62 2024 GMC Hummer ev e4WD Edition 1 $107,820 $1,333 % Buy
63 2024 Jeep Grand Cherokee Laredo $42,425 $510 % Buy
64 2023 Lexus RZ 450E Premium $61,650 $643 % Lease
65 2024 Audi e-tron GT Premium Plus $107,995 $1,224 % Lease
66 2024 GMC Hummer ev suv e4WD Edition 1 $107,820 $1,333 % Buy





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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.

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