What cars should I avoid leasing because of high depreciation?
Vehicles with historically high depreciation tend to make poor lease deals because the manufacturer sets low residuals to offset their projected loss. This includes many European luxury brands like BMW, Mercedes-Benz, and Audi, which can lose 40-50% of their value in the first 3 years. Some domestic vehicles like Chrysler and Dodge models also depreciate faster than average. High depreciation is not always a dealbreaker if the manufacturer subsidizes the lease with a low money factor, but all else being equal, high-depreciation vehicles cost more to lease for the same vehicle value.