Which commuter car has the best residual value?

cusp22 · May 2020

In general, among cars (2dr / 4dr) which make and model has the best residual value on a lease? I googled "cars with best residual value". Most of the results were off road vehicles like 4runner and wrangler.

I currently, have a 2008 Honda Civic which I am looking to replace.

Michaell · May 2020

cusp22 said:
In general, among cars (2dr / 4dr) which make and model has the best residual value on a lease? I googled "cars with best residual value". Most of the results were off road vehicles like 4runner and wrangler.

I currently, have a 2008 Honda Civic which I am looking to replace.

Why is that driving your decision?

Residual is just one piece of the puzzle, when it comes to leasing. A high residual could also have a high money factor and a low incentive, and could have a higher payment than a car with a better balance of numbers.

My recommendation is for you to take some test drives, and find a few cars that you'll be happy driving for the next 3 years. Then, come back and get the numbers for those that make your short list.

cusp22 · May 2020

Michaell said:

cusp22 said:
In general, among cars (2dr / 4dr) which make and model has the best residual value on a lease? I googled "cars with best residual value". Most of the results were off road vehicles like 4runner and wrangler.

I currently, have a 2008 Honda Civic which I am looking to replace.
Why is that driving your decision?

Residual is just one piece of the puzzle, when it comes to leasing. A high residual could also have a high money factor and a low incentive, and could have a higher payment than a car with a better balance of numbers.

My recommendation is for you to take some test drives, and find a few cars that you'll be happy driving for the next 3 years. Then, come back and get the numbers for those that make your short list.

Thank you for that tip. My reason for asking for the best residual value is to understand which cars are perceived to hold their value over 3 years. My assumption is that, cars with better residual values would be more lucarative to tradein incase I decide to switch to a different make and not lease another car of the same make.

kyfdx · May 2020

cusp22 said:

Michaell said:

cusp22 said:
In general, among cars (2dr / 4dr) which make and model has the best residual value on a lease? I googled "cars with best residual value". Most of the results were off road vehicles like 4runner and wrangler.

I currently, have a 2008 Honda Civic which I am looking to replace.
Why is that driving your decision?

Residual is just one piece of the puzzle, when it comes to leasing. A high residual could also have a high money factor and a low incentive, and could have a higher payment than a car with a better balance of numbers.

My recommendation is for you to take some test drives, and find a few cars that you'll be happy driving for the next 3 years. Then, come back and get the numbers for those that make your short list.
Thank you for that tip. My reason for asking for the best residual value is to understand which cars are perceived to hold their value over 3 years. My assumption is that, cars with better residual values would be more lucarative to tradein incase I decide to switch to a different make and not lease another car of the same make.

The chances of having equity in a leased vehicle is very small.

If you are set on leasing, you should pick the vehicle with the lowest payment, as that is your fixed cost over the next three years, and you aren't likely to benefit financially at end of lease.

Corollas and Civics both have pretty good lease programs, at this time. (though, that will vary by your location)

cusp22 · May 2020

kyfdx said:

cusp22 said:

Michaell said:

cusp22 said:
In general, among cars (2dr / 4dr) which make and model has the best residual value on a lease? I googled "cars with best residual value". Most of the results were off road vehicles like 4runner and wrangler.

I currently, have a 2008 Honda Civic which I am looking to replace.
Why is that driving your decision?

Residual is just one piece of the puzzle, when it comes to leasing. A high residual could also have a high money factor and a low incentive, and could have a higher payment than a car with a better balance of numbers.

My recommendation is for you to take some test drives, and find a few cars that you'll be happy driving for the next 3 years. Then, come back and get the numbers for those that make your short list.
Thank you for that tip. My reason for asking for the best residual value is to understand which cars are perceived to hold their value over 3 years. My assumption is that, cars with better residual values would be more lucarative to tradein incase I decide to switch to a different make and not lease another car of the same make.
The chances of having equity in a leased vehicle is very small.

If you are set on leasing, you should pick the vehicle with the lowest payment, as that is your fixed cost over the next three years, and you aren't likely to benefit financially at end of lease.

Corollas and Civics both have pretty good lease programs, at this time. (though, that will vary by your location)

I like to keep the vehicle for about 5 years. I initially negotiate on the out of door price of a new vehicle like I am buying it out right. But then start off on a 3 years lease. This helps me to keep the payment low for the first 3 years and also have the peace of mind that the vehicle is returnable after 3 years incase its value decreases drastically because of an accident or recalls. If the vehicle is still in good shape after 3 years, I buy it out and use it for few more years and trade it in when I am ready for a new vehicle. Do you see anything wrong in that approach? I did this on my last 2 lease of Nissan Leafs. In both cases I was able to tradein the vehicle for more than the lease buyout price. I am wondering if I can make it work on gas cars. Like you said both Corollas and Civics are good candidates for this.

kyfdx · May 2020

cusp22 said:

kyfdx said:

cusp22 said:

Michaell said:

cusp22 said:
In general, among cars (2dr / 4dr) which make and model has the best residual value on a lease? I googled "cars with best residual value". Most of the results were off road vehicles like 4runner and wrangler.

I currently, have a 2008 Honda Civic which I am looking to replace.
Why is that driving your decision?

Residual is just one piece of the puzzle, when it comes to leasing. A high residual could also have a high money factor and a low incentive, and could have a higher payment than a car with a better balance of numbers.

My recommendation is for you to take some test drives, and find a few cars that you'll be happy driving for the next 3 years. Then, come back and get the numbers for those that make your short list.
Thank you for that tip. My reason for asking for the best residual value is to understand which cars are perceived to hold their value over 3 years. My assumption is that, cars with better residual values would be more lucarative to tradein incase I decide to switch to a different make and not lease another car of the same make.
The chances of having equity in a leased vehicle is very small.

If you are set on leasing, you should pick the vehicle with the lowest payment, as that is your fixed cost over the next three years, and you aren't likely to benefit financially at end of lease.

Corollas and Civics both have pretty good lease programs, at this time. (though, that will vary by your location)
I like to keep the vehicle for about 5 years. I initially negotiate on the out of door price of a new vehicle like I am buying it out right. But then start off on a 3 years lease. This helps me to keep the payment low for the first 3 years and also have the peace of mind that the vehicle is returnable after 3 years incase its value decreases drastically because of an accident or recalls. If the vehicle is still in good shape after 3 years, I buy it out and use it for few more years and trade it in when I am ready for a new vehicle. Do you see anything wrong in that approach? I did this on my last 2 lease of Nissan Leafs. In both cases I was able to tradein the vehicle for more than the lease buyout price. I am wondering if I can make it work on gas cars. Like you said both Corollas and Civics are good candidates for this.

The benefit of a high residual is a low lease payment. But, you give that benefit back, if you buy out the lease.

Of course, the Leaf has a relatively low residual, as do most EVs.

cusp22 · May 2020

kyfdx said:

The benefit of a high residual is a low lease payment. But, you give that benefit back, if you buy out the lease.

Very good point !

cusp22 · May 2020

In general, woud the dealer prefer a lease to be returned and sell a new lease or would the dealer like the lessee to buy the vehicle when it is up?

Michaell · May 2020

cusp22 said:
In general, woud the dealer prefer a lease to be returned and sell a new lease or would the dealer like the lessee to buy the vehicle when it is up?

Return the lease and lease a new vehicle.

There's a reason why it's called the lease merry-go-round; once on it, it's hard to get off.

kyfdx · May 2020

cusp22 said:
In general, woud the dealer prefer a lease to be returned and sell a new lease or would the dealer like the lessee to buy the vehicle when it is up?

The dealer would like another sale, of course, but the vehicle belongs to the bank. The dealer is out of the loop, at that point, unless you contact them to buy/lease another vehicle.

Which commuter car has the best residual value?

Comments

Helpful Tools

Most popular vehicles