Finding a good deal these days seems next to impossible. Car prices are up, interest rates are still high, and even with the new technology offered in newer models, the amount of glitches and recalls plaguing the industry has made buying and leasing new cars a serious hassle.
To help people understand which leases are worth it, Matthew Long (@hellomatthewlong), a financial advisor TikToker with over 168,000 followers, listed seven SUVS that people should avoid leasing at all costs. The video was viewed over 1.8 million times as of publication.
Wait, real quick, what are MSRP, residual value, and credit scores?
Residual value is the estimated value of the car at the end of its lease. MSRP is the manufacturer’s suggested retail price, which sets the range you’ll encounter at the dealership. And we’re all familiar with credit scores in theory, but they’re calculated by the three major credit bureaus (Equifax, Experian, and TransUnion) based on five factors, per Discover: “payment history, amounts owed, length of credit history, new credit inquiries, and credit mix.”
Here’s a range of credit scores via Experian. Per Equifax, the average U.S. credit score is 701.
- Poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
Which SUVS should you avoid leasing?
Long lists “seven specific SUVS thart have horrendous reliability, residuals, and as well as they depreciate like you can’t imagine.”
2024 Land Rover Discovery Sport: Seventh on the list is a Land Rover priced at $52,700. According to Long, leasees require at least a 700 credit score and are looking at a “$875 monthly payment.” Long said that this lease has a “60% bang for your buck.”
“The best lease deal possible to give you a comparison, a 100% bang for your buck would be 1% of the true MSRP of the vehicle,” Long said.
2024 Chevy Traverse: Sixth on the list is the Chevrolet Traverse. According Long, this model is still suffering from “transmission and reliability issues.” With a $42,000 price tag, leasees are looking at a 68% bang on their buck and a monthly payment of $620.
2024 KIA Sportage: Priced at $28,000, the KIA Sportage lease comes up to $436 a month. According to Long, the bang for buck, or the actual value, on a $12,000, three-year lease is 65%.
2025 Chevy Trailblazer: Priced a little over $26,000, leasees need at least a 720 credit score and will end up paying $413 a month.
2025 Nissan Kicks: With a “terrible residual value,” the Kicks is priced at a reasonable $25,000, but leasees are looking at a $391 monthly payment, coming out to a 60% bang on your buck.
2024 KIA Soul: Priced around $20,000, leasees will end up paying around $328 a month in payments, which is a 62% bang for your buck.
2025 Ford Escape: Coming in at No. 1 and the worst deal for leasees, the Escape is priced at around $33,000. With $616 monthly payments, this SUV has a 55% bang for your buck.
Tips on getting good leases
Now that you know which SUVs to avoid if you want a good lease, it may be time to offer some tips on how to save money on a leased vehicle.
Car and Driver suggests searching for good deals and doing the research before deciding on which car to lease. Secondly, the car site suggests negotiating the price to bring down the overall monthly payments so the purchase price and residual value are closer. Thirdly, to get the correct interest rate, consumers should multiple the lease factor, or money factor, by 2400. Lastly, make sure to negotiate “the maximum number of miles you can put on the leased car,” this way there are no penalty for driving over the agreed upon mileage.
Additionally, Nerdwallet reminds consumers to maintain the car so as not to incur serious fees for things like “damaged parts, permanent stains and broken glass.”
What do viewers think?
Some viewers claimed that leasing is the best option when it comes to getting a vehicle.
“Leasing is the best options. What car / suv you don’t loose money with? None. Vehicles are not Investments,” one user said.
“The price of new cars is beyond comprehension. Will the increases ever stop? Doubtful. Imagine in 10-15 years the average MSRP reaching $60-$70K+,” a second added.
Others claimed leasing was a bad investment overall.
“If you are an investor, lease is a bad idea to start with. I agree these are not quality nameplates,” a user said.
“All leases are bad deals,” another agreed.
The Daily Dot reached out to Long and Land Rover, Chevrolet, KIA, Ford, and Nissan via email for more information.
A Nissan spokesperson replied to Daily Dot, explaining that “Kicks provides a great combination of style, features and value for shoppers in the compact SUV segment. He criticized the Nissan Kicks specifically for its residual value. However, it was just named best-in-class for the J.D. Power Residual Value Awards.”
@hellomatthewlong Don’t Lease These SUVs!!! 7 SUVs to avoid in October 2024. 🛑🚙💀 #suv #carbuying #carbuyingtips #savingmoney #money #personalfinance ♬ Relaxed beat 2/long ver.(1425965) – nightbird_bgm
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