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2013 and earlier Jeep Grand Cherokee Lease Questions

CarMan@Edmunds[email protected] Posts: 38,515
edited February 2014 in Jeep
Hi everyone. Please use the following discussion to post any questions that you have about leasing a Jeep Grand Cherokee. Thanks.

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  • fxsportfxsport Posts: 13
    Can you tell me the curretn lease rates on the Jeep Overland with DVD? The dealer is quoting no money down (inceptions roughly 2k) $41,200 price at $577 month 12k miles 39 months. MF .00214 and residual 55%

  • Local dealer has following offer.

    05 Jeep GC Laredo with MSRP of $29,195. Sales price after rebates of just under $23K I think. I have not negotiated a final price or even talked to the dealer.

    The offer is 39 months for $289/mo. 12K mi/year. 1st month and security deposit due at signing.

    For assumptions sake, let's say I could negotiate so that I paid no security deposit. Is this a good deal?
  • asd302asd302 Posts: 65
    can you tell me if this is a good deal based on the current chrysler financial numbers.
    27mo, 12k/yr
    MSRP: $40160
    NEG Price: $35500
    Rebates : -$ 6500
    NetCapCost:$29000 55% residual ($22088), .00063 MF
    PA State Tax 9% on leases, they are quoting $349/Mo + Tax
    which makes it roughly $377, is this right, it seems to me it should be a bit lower, maybe $300-$320, any help would be appreciated as they only have two left!! Thanks!
  • Here's the information that you are looking for, fxsport. If you were to lease a 2006 Jeep Grand Cherokee Overland 4WD through Chrysler Financial right now for 39 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00206 and 53%, respectively. When negotiating your lease on this truck, make sure to take the $2,000 lease cash and $1,000 bonus cash, $3,000 total, into account.

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  • This is a very good selling price for this truck, chiefbigg. According to my calculations though, a 2006 Jeep Grand Cherokee Laredo with an MSRP of $29,195 and a selling price of $23,000 leased through Chrysler Financial right now for 39 months with 12,000 miles per year should have a zero down, pre-tax monthly payment of around $268.

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  • Hi asd302. I'm not sure where you got the $6,500 in incentives from. According to the information that I have seen, DaimlerChrysler is currently providing $4,500 lease cash plus an additional $1,000 bonus cash, $5,500 total on the 2005 Jeep Grand Cherokee Limited right now. Perhaps you are a returning lessee who is taking advantage of the $1,000 lease loyalty cash. However you arrived at it, $29,000 is a heck of a selling price for a $40,000 truck :surprise: . The money factor that you were quoted is much lower than any I have seen being offered by Chrysler Financial right now. According to my calculations, if you were to lease this truck through CFC for 24 months with 12,000 miles per year, its zero down, pre-tax monthly payment should be around $354. As you can see, the payment that they quoted you is pretty close to the one that I came up with using Chrysler Financial's actual current lease program.

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  • So the dealer has not one, but TWO left! There's no need to hurry; business is almost certainly very slowwww...and the dealer has TWO!!!

    Using your figures and Edmunds' lease calculator I compute a monthly lease payment of $288 + tax. The calculator at yields the same result.

    So why the discrepancy between this figure and the dealer's $349? I suspect the dealer is including assorted fees in the payment, like documentation, registration, license, acquisition, disposal, and heaven knows what else (possibly at inflated prices). The reg and license fees are likely state mandated, but the others are negotiable - or should be. I suggest you ask that they be waived! In my opinion that's a reasonable request on an '05 left-over, particularly in today's slow bus environment. A doc fee of, say, $250 is a rip-off, since it probably costs no more than $10-$20 for a dealership to prepare paperwork on the sale or lease of a vehicle. Refuse to pay it.

    Car_man is correct about the $29,000 reduced cap cost. I estimate that your negotiated lease price of $35,500 before rebates is ~$1100 below Edmunds' invoice. Has the manufacturer discounted the invoice price to your dealer? A 5% (of MSRP) discount wouldn't surprise me and that wouldn't include any holdbacks, either, which the dealer would still get. (In your case, 5% of MSRP = $2000, approximately, which would reduce the invoice cost to about $34,600. So your negotiated price leaves the dealer with about $900 profit, less advertising and assorted incidental costs, but not including holdbacks. That $900 is about 2.5% of the adjusted dealer invoice - a reasonable profit in my opinion).

    Before the days of customer rebates a 5% discount by auto makers was common practice at the end of the model year and may still be, even when manufacturers are offering direct customer incentives. If so, that should tell you how slow business really is.

    My own experience with the purchase of an '05 Laredo at the end of October was similar; my dealer offered to sell me my JGC, before rebates, nearly $700 below Edmunds' invoice (leaving him by my estimate with about 3.7% profit after a 5% invoice discount, not including holdbacks). In fact, I didn't even ask. See my post #282 on the Prices Paid & Buying Experience discussion board in this forum.

    It's my understanding that most auto manufacturers grant Edmunds access to internal company Web sites, not available for public access, where manufacturer-to-dealer incentives and marketing support are listed. Edmunds then consolidates this information and posts it.

    But other incentives that not even Edmunds has access to can also exist.
  • asd302asd302 Posts: 65
    This price of $29000 does include the $1000 lease loyalty, I know that is a great deal cap cost wise, but I too calculated around $290+Tax and am wondering where the extra $60 is coming from! Thats roughly $2000!! They also did say that the new lease is through chrysler financial. Is there a way to find out if Chrysler has given a dealer the 5% invoice discount you talk about, and if so should I keep going for an even better deal? Oh, and they have two in the COLOR I want, about 7 on the lot with the same deal!
  • <<...Is there a way to find out if Chrysler has given a dealer the 5% invoice discount you talk about, and if so should I keep going for an even better deal?>>

    I suggest you ask your salesman, but, beware, he may not know, or may inadvertently give you incorrect information. In fact, getting accurate information from a car dealership is often like pulling TEETH. Asking your salesman's manager may not help, either, although he will know.

    If you feel so inspired and have lots of time and energy to run around town between dealerships, query the sales staff at more than one store. (And not over the phone or by email. No....face to face in a showroom....and be sure the store knows you are a serious buyer.) However, don't be surprised if some dealerships won't offer or negotiate an end-of-model-year discount that exists, particularly in today's world of direct and often confusing customer rebates, which constantly change.

    But that doesn't appear to be the case in your deal, so I think it's moot to ask your dealer about the discount. What your store offered is consistent with my premise of one, based on my own experience (and now yours).

    No, I don't think you will be able to do much better than what's offered, unless there's a discount greater than 5% or the store is willing to work even closer to invoice. Of course, it certainly doesn't hurt to ask (your decision). You won't embarrass yourself if you do!

    Regardless of what you decide, ask (insist!) that the non-mandated lease fees be waived and be prepared to negotiate hard. By that I mean standing your ground and budging only reluctantly if you need to, and only by a small amount.

    During my transaction last week I asked my salesman, "Do auto makers still discount left-over vehicles 5% at the end of a model year?" He said, "Yes." That answer was enough for me and I didn't question him further. Later, however, I phrased the question a little differently to one of the store's finance managers. He said there was no discount to the invoice. If that was the case, then the store dug deep into its holdbacks to close my sale.

    Fat chance of that (or I'm missing something).
  • Hi Car_Man. Can you post the numbers for a 39 month 12k & 15k miles/year lease on a 06 Jeep Grand Cherokee Laredo? Thanks so much! Steve
  • Car_man, In addition to my original inquiry on the JGC lease, do you know if there is any sort of "pull-ahead" type program going on now through Chrysler Financial? My current JGC lease runs through March 2006, but I know at times they have these such programs that "forgive" the last 3 - 4 payments if you lease another vehicle through them. Thanks so much! Steve
  • Car_Man, Are you out there?!?! Would much appreciate the information on the 06 Jeep Grand Cherokee. Steve
  • Hi Car_man, Sorry to bother you again, but I am trying to gather as much infomation as I could before I go to the dreaded dealer.

    Can you please post the money factor and residual for both the 2005 Grand Cherokee Limited with Hemi 12k/39 months and for the 2006 Grand Cherokee Laredo (V6) & Limited? My current lease is drawing near and I'd like to complete this as soon as possible. Thanks in advance, Steve
  • Hello,

    I am very interested in leasing a 2005 Cherokee Limited with a Hemi and the DVD in the rear for the kids. Bottom line loaded. I am seeing sticker prices for such models at about $42,500. I am willing to put about $2500.00 down. The current incentives appear to be $4500.00 plus an additional $1000.00 back. Should I be applying those incentives to the sticker price or the invoice price? Once I do how do I determine a fair and reasonable lease price? My goal is to be in the $500.00 a month range on my payment. Is that reasonable or not? any help will be greatly appreciated.

  • Please read my post #286 in the Prices Paid and Buying Experience message board of this forum.

    I won't comment on lease terms, other than to suggest that a $500 monthly lease payment is grossly out-of-line. You might be able to get a lease payment in the $350 range without putting much money down. Read recent posts on this board.

    To get that kind of a payment you will need to compute a fair and reasonable cap cost (lease price) carefully. I suggest that you do so according to the following formula, which assumes a 5% reduction in the invoice price of leftover 2005 models and a 3% (of invoice) profit to the store:

    adjusted invoice price = Edmunds invoice - 5% of MSRP

    Include the destination charge in the MSRP figure.

    (reduced) cap cost = adjusted invoice price x 1.03 - direct manufacturer-to-customer rebates

    Lets take an example: suppose the MSRP is $42,000 and Edmunds invoice price is $38,000 for your vehicle. (These are my approximate figures; use the manufacturer's window sticker and Edmunds invoice pricing - but NOT Edmunds TMV - to get the actual numbers.) According to Edmunds, the manufacturer-to-customer rebate on '05 JGC Limiteds is $5,500, so

    5% x MSRP = $2,100
    adjusted invoice cost = $38,000 - $2,100 = $35,900
    3% x $35,900 = $1,077 (profit to the store)
    reduced cap cost = $35,900 + $1,077 - $5,500 = $31,477

    The store still gets the usual holdbacks (as well as nearly $1,100 in profit!) and you get all of the direct manufacturer-to-customer rebates. Of course, you may feel that a 3% profit is more than you are willing to spend on a leftover 2005. If so, reduce the 1.03 factor. You won't embarrass yourself in the store if you do.

    Bottom line: by using this approach at your dealership you should be able to get a lease deal with a cap cost at least $10K below MSRP on your vehicle.

    And insist that the store waive its typical documentation fee, which was as high as $250 at stores I visited when I was shopping last month, and some or all of the usual junk lease fees. Be prepared to negotiate hard on this point, i.e., be firm and, if you need to, yield only grudgingly.
  • I just completed a lease deal on an 05 Limited (non-Hemi) on Wednesday. I went back and forth to a few different dealers and played the game. I was able to get mine at invoice minus $200 dollars for those doc fees, etc. I don't think anyone at this point is going 4 or even 5 % under invoice.

    The $5500 incentive gets subtracted at the invoice price (or negotiated price.) As most people will tell you, putting money down is usually not a good idea to simply lower your payment. The reason is, if the car gets totalled or stolen, that money is gone (the ins. company pays off the leasing company and you are out the $2500).

    Having said all that, the important numbers to know are for a 12k mile/yr/39 month lease through Chrysler Financial the residual is 49% and the money factor is .00129 (you can use the edmunds lease calculator to get a close estimate.) I think that you could be in the $500/month range with no money down. (And please don't tell them up front how much you want to pay per month, negotiate the price of the truck first and then work from there.)

    Good luck! I'm picking mine up today here in NY.
  • I am buying a 2006 JGC Ltd. MSRP is 41,400. I am a EP(employee price)buyer. Yes, I am a real employee of Chrysler....

    I am interested in a 36 month lease, 12,000 mi per year.

    Thanks to this board...very informative.

    Regards, Riley
  • Hi Steve. Here's the information that you are looking for. If you were to lease a 2006 Jeep Grand Cherokee Laredo 4WD through Chrysler Financial right now for 39 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00175 and 50%, respectively. Its 12,000 miles per year residual value would be 2% higher.

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  • Hey Steve. The the best of my knowledge, DaimlerChrysler is not currently running any sort of lease pull ahead program on the 2006 Jeep Grand Cherokee. It might now hurt to ask a dealer or two just to make sure though.

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  • Steve, if you were to lease a 2005 Jeep Grand Cherokee Limited 4WD through Chrysler Financial right now for 39 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00129 and 49%, respectively. I already mentioned what the program for the 2006 Laredo 4WD is like in my previous post. The numbers for an otherwise identical lease of a 2006 Grand Cherokee Limited 4WD should be .00195 and 54%.

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  • You're right, njdealguy. DaimlerChrysler is currently providing $4,500 customer cash plus $1,000 bonus cash ($5,500 total) or the Miles of Freedom plan on the 2005 Jeep Grand Cherokee. This cash is good on it regardless of whether you pay cash for it or lease it. The cash incentives are a much better deal than the silly Miles of Freedom plan is. The selling prices of leased vehicles definitely is negotiable, so you should not be applying these incentives to the MSRP of the vehicle that you are interested in, but a more attractive price that you have to negotiate. I don't know if you can get a dealer in your area all the way down to dealer invoice before the deduction of incentives on an '05 Grand Cherokee right now, but I bet than you can come fairly close, say $500 over or so. The monthly payment that you are trying to achieve may be attainable. I can tell you for sure if you provide me with the exact MSRP (including the destination charge) and selling price for the model that you want.

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  • I'm glad that you find this discussion so informative, Riley. I'd be happy to tell you what your lease payment on this truck should be like if you tell me the exact selling price that you are able to get it for through DaimlerChrysler's employee purchase program.

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  • mad55mad55 Posts: 1
    Hi, I just leased a Jeep Grand Cherokee Limited with Hemi today. The MSRP was $40,100. This car is for my son who just graduated from college. My goal was to get the monthly lease payments down to $320. The dealer started out at $395 and then with some resistance on my part came back with a $350. offer. I stood fast on my $320 number and he said it was not possible. That he would have to give the car away. I said I would check other dealers as there are many leftover 2005 Jeeps in my area( upstae NY ). We went outside and were discussing what dealer to try next and the sales person came out and said they were willing to go to $330. I decided that this was very resonable and made the deal. We basically bought a $40,100 vehicle for $30,000. The vehicle invoice was about $37,400 plus the $5500 rebate plus part of the "hold back". So I would try much harder to get a better deal. This deal was with no money down except for State tax and DMV fees. It was a 39 mo. lease with 12,000 miles. I belioeve the lease deal ends 11/30/05
  • Car_man ,

    Thanks....yes. I enjoy the board! The shared experiences have been very informative and useful.
    As per my upcoming purchase....

    MRSP - $ 41,400
    Employee Price(Chrysler - 'Green Slip') 36,811
    The Model is a 2006 JGC Ltd.-most options
    My credit is excellent.
  • Car_man,

    One additional point.

    I am eligible for rebates.

    Thanks in advance....
  • First I would like to thank everyone for posting responses to my first post. So the wife and I are going to a local jeep dealer tomorrow. They have 17 JGC with Hemi's in stock. The sticker / MSRP on the loaded models is 42K to 43K.

    Based on everyones feedback I will push for a lease payment of $350 a month with 15k miles per year with very little down. Any thoughts on how little the little down should be? $0, $250, $500, $1000 ????

    Also please let me know if anyone feels my numbers here are off? I dont want to embarres myself.

    Any help would be greatly appreciated.
  • Good luck tomorrow. I don't think that the $350/month range is likely. The incentives for December aren't as good as they were last month and I'm sure the residuals have gone down further.

    For a 42k - 45k truck, I think you'd easily be in the $450/month range. The little to put down? Usually first month's payment & DMV fees are standard.

    The thing on your side is the fact that they have so many leftovers and we are into December. It all depends on how desperate the dealer is to move them. Unfortuantely, the factory incentives are down to $4500 now, down from $5500 ($6500 if you were a returning leasee) last month.

    Good luck and keep us posted.
  • ok so $450.00 a month plus the first months payment. Along with their Miles deal where I get free gas for two years and free service, I guess its not a bad deal?

    I will let everyone know how I do.
  • Ok so we went to the dealer.

    First off as you know the incentive currently is $4500.00. Additionally if you finance thru Chrysler financial you get another $1000.00 off.

    They ended up offering a lease of $1500 down and $425 a month. Which was in my opinion high. Then I tried to throw my trade in into the mix. They low balled me by $2000.oo on that.

    So they then came back with $575.00. Needless to say we left the dealer

    Maybe they will call me back at the end of the month???

    Guess it depends how many they still have left.

    Anyway I hope this info helps others.
  • 6month6month Posts: 10
    I went to trade my 2002 GC at a local Ford Dealer on a new SUV. The salesman told me I was better off holding on the Jeep until the lease ends in Mar06 since it's diffucult to end a lease on a Jeep early. Is this true. I have some interested in purchasing the SUV what should I do now. Am I stuck with 2 SUV's until March ?
This discussion has been closed.