Do SUVs hold their value better than sedans?

Generally, yes, but with important exceptions. SUV demand has been strong for over a decade and resale values reflect that. However, the residual advantage varies significantly by brand and model. A Honda Civic sedan can actually hold its value better than many midsize SUVs because Civic reliability and demand are both high. From a leasing perspective, stronger residual value means lower monthly payments, so checking the specific model's projected residual is more useful than assuming SUVs always win on resale.