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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 2023 Toyota Tacoma, with a residual value of 73% over 3 years. With an MSRP of $38,948, that means it will depreciate by only about $10,000 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 2023 Toyota Tacoma SR5 $38,798 $431 73.0% Lease
2 2023 Toyota Tundra i-FORCE MAX Max LTD 10AT $62,437 $762 69.0% Buy
3 2023 Kia Niro EV Wind $40,875 $431 69.0% Lease
4 2023 Honda Ridgeline RTL $43,125 $480 67.0% Lease
5 2023 Honda Passport EX-L $42,445 $524 64.0% Buy
6 2023 Mazda CX-9 Touring $40,125 $471 59.0% Buy
7 2023 Hyundai Kona EV EV SE EV Automatic Transmission $34,885 $373 58.0% Lease
8 2023 Hyundai Nexo LTD Automatic Transmission $64,920 $777 58.0% Buy
9 2023 BMW 4 Series i4 eDrive35 $54,345 $576 56.0% Lease
10 2022 Chevrolet Traverse LT $38,420 $449 % Lease
11 2023 Dodge Durango R/T Plus $59,885 $677 % Lease
12 2023 Audi e-tron GT Premium Plus $106,395 $1,178 % Lease
13 2023 Jeep Wrangler 4xe Rubicon 4xe $62,380 $700 % Lease
14 2022 Dodge Durango GT Plus $47,085 $485 % Lease
15 2023 Volvo S90 B6 Plus $58,095 $701 % Buy
16 2023 Lexus NX 350 $45,840 $555 % Buy
17 2022 GMC Sierra 1500 Short Elevation $56,870 $543 % Lease
18 2023 Cadillac XT5 Luxury $46,465 $570 % Buy
19 2022 Jeep Renegade Latitude $31,025 $380 % Buy
20 2023 Jeep Grand Cherokee Limited $51,650 $609 % Buy
21 2023 Chevrolet Traverse LT $39,315 $461 % Buy
22 2022 Chevrolet Colorado LT $37,770 $436 % Lease
23 2023 Audi e-tron Premium $71,995 $877 % Buy
24 2023 Jeep Grand Cherokee L Laredo $44,830 $542 % Buy
25 2022 Chevrolet Trax LT $26,190 $305 % Lease
26 2023 GMC Sierra 1500 Short Elevation $57,820 $625 % Lease
27 2023 Volvo C40 Recharge Twin Core $56,395 $699 % Buy
28 2023 Audi Q5 e 55 S line Premium Plus $64,130 $776 % Buy
29 2022 GMC Canyon Short Elevation $36,770 $409 % Lease
30 2023 Cadillac XT4 Luxury $38,365 $468 % Buy
31 2023 Lexus UX 250H $40,700 $491 % Buy
32 2022 Jeep Grand Cherokee 4xe 4xe $61,660 $603 % Lease
33 2023 Chevrolet Silverado 1500 LT (2FL) $54,320 $513 % Lease
34 2023 Ram 1500 BIG Horn $52,150 $422 % Lease
35 2023 Audi A6 45 Premium $60,295 $727 % Buy
36 2023 Jeep Grand Cherokee 4xe Summit 4xe $74,390 $920 % 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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