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 Kia Niro EV, with a residual value of 71% over 3 years. With an MSRP of $40,925 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 | 2024 Kia Niro EV | Wind | $40,925 | $387 | 71.0% | Lease |
| 2 | 2023 Kia Niro EV | Wind | $40,875 | $367 | 67.0% | Lease |
| 3 | 2023 Honda Ridgeline | RTL | $43,155 | $480 | 63.0% | Lease |
| 4 | 2023 Nissan ARIYA | Engage 63 kWh | $45,080 | $493 | 63.0% | Lease |
| 5 | 2024 Hyundai Ioniq 6 | SE | $43,565 | $478 | 62.0% | Lease |
| 6 | 2023 Toyota Prius Prime | XSE -F | $36,994 | $431 | 62.0% | Lease |
| 7 | 2024 Hyundai Ioniq 5 | SE STD Range | $42,985 | $473 | 62.0% | Lease |
| 8 | 2023 Kia Sorento | LX | $31,415 | $388 | 62.0% | Buy |
| 9 | 2024 Kia EV6 | Light Long Range | $47,275 | $527 | 62.0% | Lease |
| 10 | 2023 Honda Passport | EX-L | $42,475 | $495 | 61.0% | Lease |
| 11 | 2024 Genesis GV70 | Advanced | $67,645 | $827 | 60.0% | Buy |
| 12 | 2023 Hyundai Ioniq 5 | SE STD Range | $42,785 | $429 | 60.0% | Lease |
| 13 | 2023 Hyundai Santa Fe | SE | $30,085 | $373 | 60.0% | Buy |
| 14 | 2023 Genesis GV70 | Advanced | $66,975 | $788 | 59.0% | Buy |
| 15 | 2023 Hyundai Nexo | LTD | $64,920 | $777 | 58.0% | Buy |
| 16 | 2023 Genesis GV60 | Advanced | $60,415 | $691 | 58.0% | Lease |
| 17 | 2023 Infiniti Q50 | Luxe | $43,800 | $532 | 58.0% | Buy |
| 18 | 2023 Kia EV6 | Wind | $50,025 | $507 | 57.0% | Lease |
| 19 | 2023 Mercedes EQE | EQE 350+ | $76,050 | $869 | 56.0% | Lease |
| 20 | 2023 Subaru Solterra | Premium | $46,220 | $399 | 55.0% | Lease |
| 21 | 2024 BMW 7 Series | i7 eDrive50 | $106,695 | $1,256 | 55.0% | Buy |
| 22 | 2023 Mercedes EQS | EQS 450+ | $105,550 | $1,307 | 54.0% | Buy |
| 23 | 2024 BMW 4 Series | i4 eDrive35 | $54,545 | $613 | 54.0% | Lease |
| 24 | 2023 Hyundai Ioniq 6 | SE STD Range | $42,715 | $362 | 54.0% | Lease |
| 25 | 2023 Volkswagen ID.4 | PRO | $43,995 | $489 | 53.5% | Lease |
| 26 | 2024 BMW iX | iX xDrive50 | $90,595 | $955 | 53.0% | Lease |
| 27 | 2023 Mercedes EQB | EQB 250+ | $55,150 | $632 | 49.0% | Lease |
| 28 | 2023 Toyota bZ4X | XLE Electric 1SPEED | $46,624 | $450 | 47.0% | Lease |
| 29 | 2024 Audi Q4 e-tron | 40 Premium | $55,695 | $624 | % | Lease |
| 30 | 2023 Chevrolet Blazer | 2LT | $39,770 | $433 | % | Lease |
| 31 | 2024 Volvo S90 | B6 Plus | $58,795 | $657 | % | Lease |
| 32 | 2023 Lexus GX | 460 | $61,310 | $730 | % | Buy |
| 33 | 2024 Audi Q8 e-tron | Premium All-Wheel Drive | $75,595 | $748 | % | Lease |
| 34 | 2023 Audi A6 | 45 Premium | $60,295 | $720 | % | Buy |
| 35 | 2024 Jeep Wrangler 4xe | Willys 4xe | $60,740 | $503 | % | Lease |
| 36 | 2023 Lexus RZ | 450E Premium | $62,100 | $652 | % | Lease |
| 37 | 2023 GMC Sierra 1500 | Short Elevation | $59,070 | $617 | % | Lease |
| 38 | 2023 Jeep Grand Cherokee 4xe | Trailhawk 4xe | $67,055 | $796 | % | Buy |
| 39 | 2023 Volvo C40 Recharge | Twin Core | $56,395 | $550 | % | Lease |
| 40 | 2023 Audi Q4 e-tron | 50 Premium | $58,895 | $624 | % | Lease |
| 41 | 2024 Audi e-tron GT | Premium Plus All-Wheel Drive | $107,995 | $1,243 | % | Lease |
| 42 | 2023 Cadillac CT4 | excluding V Premium Luxury | $41,565 | $463 | % | Lease |
| 43 | 2024 Volvo S60 | B5 Core Dark | $43,095 | $511 | % | Buy |
| 44 | 2024 Audi Q5 e | 55 S line Premium All-Wheel Drive | $58,995 | $672 | % | Lease |
| 45 | 2023 Chevrolet Colorado | LT | $33,970 | $415 | % | Buy |
| 46 | 2024 Jeep Wrangler | 4-door Sport | $43,045 | $478 | % | Lease |
| 47 | 2023 Lexus RX | 350 | $51,475 | $624 | % | Buy |
| 48 | 2024 Audi Q8 e-tron Sportback | S line Premium All-Wheel Drive | $79,480 | $845 | % | Lease |
| 49 | 2023 Jeep Compass | Limited | $37,390 | $368 | % | Lease |
| 50 | 2023 Audi e-tron GT | Premium Plus | $106,395 | $913 | % | Lease |
| 51 | 2023 Jeep Wrangler 4xe | Rubicon 4xe | $62,380 | $655 | % | Lease |
| 52 | 2023 Volvo XC40 Recharge | Twin Core | $54,645 | $585 | % | Lease |
| 53 | 2023 Buick Enclave | Essence | $47,070 | $584 | % | Buy |
| 54 | 2024 Ram 1500 | Tradesman | $48,950 | $414 | % | Lease |
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
About The Author
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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