When considering a new lease, savvy car shoppers often pay close attention to residual values, especially for popular models with strong resale histories. Residual values are the estimated worth of a vehicle at the end of a lease term, and they can greatly impact lease payments and the final buyout price. Honda Canada recently set a surprisingly low 42% residual value for a 60-month lease on the 2025 CR-V, a figure that has turned heads given the CR-V’s reputation for excellent resale value. To put this into context, let’s examine how this compares to residuals for the 2025 Hyundai Palisade, Mazda CX-50, Audi Q3, and Hyundai IONIQ 5, all of which are top choices in CarCostCanada’s Market Value Reports.
The 2025 Honda CR-V – Conservative Strategy for a Proven Model?
The 2025 Honda CR-V is a staple in the Canadian SUV market, known for its dependability, family-friendly features, and excellent resale value. With that in mind, a 42% residual over 60 months seems surprisingly conservative. This low residual could be a hedging strategy by Honda Canada, perhaps as a buffer against the rapidly evolving SUV market and potential shifts toward EVs. A lower residual also brings a lower-than-fair market lease-end buyout price, potentially making it more attractive for lessees to keep their CR-Vs when the lease expires.
This could be a calculated move by Honda to retain loyal customers longer, ensuring the CR-V’s solid resale value while protecting against future market risks. That said, isn’t it counterintuitive to the leasing mandate to retain the client and put them into a new lease? Perhaps Honda is a little cagier than other OEMs hoping that the lessee will lease a new CR-V and hand the CR-V down to a family member and keep the parts, service and maintenance business for their dealer network.
Interestingly, this lower residual is still effective at keeping Honda CR-V leases with competitive monthly payments, appealing to a broad market. It also means that drivers who do decide to purchase their CR-V at the end of the lease may get a good deal, as the buyout price could be well below the actual market value.
2025 Hyundai Palisade – A Confident 63% Residual
For a stark contrast, Hyundai Canada has set an impressive 63% residual on a 60-month lease for the 2025 Hyundai Palisade. This high residual indicates Hyundai’s confidence in the Palisade’s value retention, durability, and ongoing appeal in the highly competitive three-row SUV segment. It also suggests Hyundai’s eagerness to make leasing attractive for Palisade buyers by offering lower monthly payments due to the higher residual. Hyundai is betting that the Palisade’s spaciousness, high-end features and strong brand reputation will continue to draw demand, maintaining its value even after five years on the market.
2025 Mazda CX-50 – A Balanced Approach at 46%
Mazda’s approach with the 2025 CX-50 is more balanced, with a 46% residual over 60 months. Mazda likely sees the CX-50 as a stylish yet niche crossover, and this residual reflects a practical outlook that keeps monthly lease payments competitive without banking too heavily on resale value. Mazda may be cautious due to the influx of other crossovers in this space and a market that has the potential to start leaning more toward EVs. This balanced residual helps Mazda appeal to consumers who appreciate the CX-50’s upscale design and driving experience, but it also keeps Mazda’s risk in check if demand shifts.
2025 Audi Q3 – Luxurious and Cautious at 44%
Audi’s 44% residual for the 2025 Q3 over 60 months underscores the luxury brand’s caution in the face of a rapidly evolving premium SUV market. Luxury models often experience more dramatic depreciation, and Audi seems to be playing it safe with the Q3. A higher residual may encourage lessees to return the vehicle and upgrade more frequently, which aligns with Audi’s goal of maintaining a fresh luxury fleet. This approach is typical in the premium segment, in which automakers aim to provide competitive leases while managing the steeper depreciation associated with tech-heavy luxury vehicles.
2025 Hyundai IONIQ 5 – Moderate Confidence in the EV at 49%
Lastly, the 2025 Hyundai IONIQ 5’s 49% residual reflects both Hyundai’s optimism and caution in the rapidly expanding EV market. Electric vehicles face unique depreciation risks due to advancing battery technology, which can quickly make older models seem outdated. With a 49% residual, Hyundai is likely hedging its bets, balancing attractive lease payments for early EV adopters with the uncertainties of long-term EV resale values. This residual allows Hyundai to remain competitive in the EV leasing landscape while giving them flexibility as the market matures.
Conclusion: Market Strategies in Action
The variation in these residuals across the 2025 CR-V, Palisade, CX-50, Q3 and IONIQ 5 reflects distinct strategies tailored to each brand’s position in the Canadian market. Honda’s 42% residual for the CR-V may be lower than expected, but it’s likely a calculated move to stay competitive while having to navigate the potential of more than expected end-of-lease buyouts. Meanwhile, Hyundai’s high Palisade residual makes it clear they see it as a standout in its segment, whereas Mazda, Audi, and Hyundai (for the IONIQ) take a more cautious approach.
For Canadian consumers, these residuals offer insights into each brand’s expectations for their vehicles’ long-term desirability, helping them choose the lease that aligns best with their budget, driving needs and long-term plans. With Honda’s CR-V and the Hyundai Palisade leading the pack, it’s clear that the battle for market value is as fierce as ever, making 2025 a fascinating year for SUV and crossover enthusiasts.
James Matthews is the President, General Manager and Co-Founder of LeaseBusters. James launched LeaseBusters in 1990 and is considered one of Canada’s leading experts on new vehicle leases, lease-take-overs and vehicle lease (re)marketing. James can be reached directly at jmatthews at leasebusters.com
