What does low depreciation mean for a car lease?

In a lease, you pay for the depreciation the car experiences during your lease term, plus a financing charge. A car with low depreciation retains more of its value, which means a higher residual value percentage is set by the manufacturer's financial arm. A higher residual translates directly to a lower monthly payment because you are financing a smaller portion of the vehicle's total value. In short, low depreciation is one of the main reasons some vehicles lease significantly better than their sticker price suggests.