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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 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





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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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