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 |

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
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