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2013 and earlier Jeep Grand Cherokee Lease Questions



  • Greetings Jason. According to the latest information that I have seen, Ally's current base lease rate and residual value for a 36-month lease of a 2012 Jeep Grand Cherokee Overland 4WD with 15,000 miles per year are 0.42% and 47%, respectively.

    The numbers for an otherwise identical lease of a Limited 4WD are 0.3% and 48%.

    Chrysler is currently providing a $1,000 cash incentive on leases of this truck.

    If I was in the market for this truck, I personally would try to finalize a deal before the end of the year. Dealers and manufacturers are usually eager to close as many deals as they can before year-end.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hello amric1. Chrysler is not providing lease support on 2011 models any longer.

    Prices Paid: Buying & Leasing Experiences Forum
  • Hi,

    I picked up a new 2012 JGC yesterday at Merrick Dodge. I think I got screwed. This is a 36/ 12k a year lease. The MSRP for the car was $37515. It it a brillant blue 26x package. I received $2,000 in rebates. I also was trading in a car and owed 17, 097 for a 10 day payoff and they gave me $17,500. I negotioted with the salesman for a price of $33,426. I did not want anything out of pocket and I wanted all tax rolled in. The salesman gives me a monthly price of $427 with a residual of $20,680. Anyway I went to three dealers and all prices were comparable. I went back to Merrick and I received a final price of $403 and the only out of pocket expense was $904 which included first months payment and dmv fees, etc. I come home with the lease ticket and all the prices were changed on the agreement.

    The amount agreed upon which is $35,026.00
    Price with taxes- $36971.97

    Now the reason why I think I got screwed is because I asked the salesman 5 times is there a fee at the end if I dont buy the car. He said no and there is-395.00

    And second-the residual value that was used to calculate my payment is different from the purchase option at the end of the lease. They used $20,258.10 to calculate my payment and the purchase option at the end is $20,608.10. Is there anything I can do? I definitely got screwed with the negotiated price of the car but If I am right with my calculations, they owe me about $350.00 or 10 less a month from the $403.01. Is this a fair price? or should I pusue my losses?

    I called to complain today and they bs me.
  • I had a deal with Merrick Dodge of a 2010 x package - I'm glad it fell through - Got a better deal from a better dealership (Westbury).

    Sorry for your troubles -
  • I think the dealer is trying to screw with the money factor & residual on the lease I am trying to work out.

    Here are the numbers I have...

    2012 JGC Laredo X RWD V6

    MSRP $36,960
    Neg Price $32,220
    $1,000 Cust Incentive ($765 drive off costs w/rest going as down pmt)
    $795 Lender Fee
    Adjusted Cap Cost $32,780
    Residual 48%
    Money Factor 0.800% (this is where we think the issue lies)
    36 month / 12k miles
    Tier B credit (681 score)
    Ally Bank

    From what I've read it seems the base Ally money factor is 0.41% for tier A buyers...what should the MF be for tier B?
  • question i live in ny, was trying to figure out what state you are in. i got a deal for a 2012 jeep overland, for 36 mnths with 15,000 miles at 580 a month with 2800 down. im pretty sure im getting gypt by 2grand should be at about 520.

    was wondering if you are from ny what dealer did you go if you dont mind me asking, thanks
  • Yes I am from NY. The dealership is Merrick Dodge of Wantagh.
  • Greetings, would it be possible for you to post the Ally January rates/residuals for an Overland Summit?

    36 months, 15k miles.

    Thank you much!
  • anyone know the MF/residual for a 2012 jeep grand cherokee 4x4 laredo? the last i have is:

    54% residual
    .00018 MF
  • I am new to the forum and to leasing but have tried to do my homework and take advice from this forum.

    Got the dealer to give me this info (exactly as he presented to me). Is this a good lease deal

    I live in CT.

    2012 Jeep Grand Cherokee Laredo 26x package 4x4 - 6cyl True Blue with the NAV system and dual Pane Sunroof - in True Blue

    Msrp: $38,710.00
    Price: $36,493.00
    Rebates: $2,500.00
    Money down: $4,500.00 (all inclusive, title, tax tags reg etc..)
    Cap cost: $31,664.00
    Rate: .25%
    Residual: @ 50% is $19,355.00
    Term is 36 months 15,000 miles per yer
    Payment: $346.75 plus tax of 6.35% = $368.77

    Thanks, the help is very much appreciated.
  • To add more detail, I would qualify as Tier 1 and the breakdown of the 4500 is as follows

    Reg $188.00, first month pay 368.77, tax $395.99, bank fee $870.00, Dealer Proc fee $329.00. = $2151.76

  • Does 2012 Laredo 4x4 with e group for 320 all in sound ok.
    Taxes and bank fee included. Just pay tags

    Sticker is 31,820
  • How are you guys negotiating such low monthly payments for this package? Every time I do the lease calculator, the monthly payment comes above $500 with all of the above numbers entered in. I'm looking to lease a 2012 Laredo 4x2 MSRP 27,999. Currently, in my area, Jeep has a $309/month lease promotion for the base model Laredo. Am I better off just negotiated the purchase price of the car and then telling the dealer I want to lease?

    Thanks for any help. I'm new to leasing. Don't want to get screwed.
  • Hi its2loud,

    Please remember that a lease is based on three variables: Negotiated sales price; Residual Value (RV); and Money Factor (MF). In a monthly lease payment, the RV determines the monthly depreciation component while the MF determines the monthly interest charges. Then, in most states but not all, your tax is assessed on the monthly payment.

    RV is a fixed percentage set by the financial institution who will underwrite the lease. There is a base rate MF that is suggested by the financial institution as well but dealers have the lattitude to mark it up as another source of profit. Both RV and MF are based on your model, lease term, and mileage per year

    My unsolicited advice is,
    - Ask Carman on this forum for the RV and MF for the lease term of interest so you have that in your backpocket and can compare to the numbers the dealer suggests
    - Negotiate your best sales price on the truck
    - Pay $0 down (cap cost reduction) and only pay 1st month's payment and any DMV fees

    My apologies for being pedantic as I'm simply trying to help.

  • Thanks so much for this info. It's all very helpful and appreciated. I would like to get a gauge on what the MF and RV for a lease are so I know what I'm dealing with when I go into the dealer. I just don't want to go in blind because then I know I'll get taken.

  • Car_Man,

    Can you tell me what the RV and MF are for a 2012 Jeep Grand Cherokee 2x4 26E package. 3 year term @ 12,000 mpy? Thanks so much.
  • gotgt3gotgt3 Posts: 85
    Hi Car Man!
    Could you provide the MF and residuals on the jeep grand cherokee laredo X as well as the JGC Limited?
    I'm getting such crazy numbers that what the dealer is saying/calculating does not make ANY sense!
    Many thanks!
  • gotgt3gotgt3 Posts: 85
    Hi Dewarsandsoda,
    Quick question about your post. If the lease is determined base on the negotiated sales price - why is it that the NSP can be 32K but the cap cost is 37k (ie barely below MSRP?
    Shouldnt the significant decrease in negotiated SP make the capitalized amt also lower?
  • Car_Man,

    I am looking for the residual value on a 2012 Jeep Grand Cherokee Laredo 4x4 with 26X package and panoramic sunroof @ 10k miles and 12k miles on a 39 month lease.

    Also looking for the money factor and rebates currently being offered.

    Thanks for your help!
  • Hi gotgt3,

    Hmmm...the dealer is obviously screwing with you as the best way to think of this is to look at the calculations which would be as follows,

    Monthly Depreciation = (Negotiated Sales Price - (RV*MSRP))/Lease Term
    Monthly Interest Charges = (Cap Cost + RV*MSRP)*MF
    Monthly Lease (pre tax) = Monthly Depreciation + Monthly Interest Charges
    *N.B.: Cap Cost assumes Negotiated Sales Price + Acquisition fee only (i.e., no cap cost reduction or $0 down)

    Hence, the Cap Cost should be slightly above the Negotiated Sales Price, assuming that all that is added is the acquisition fee. It definitely isnt' 5K more like your example. The dealer is likely adding other extraneous items, so you should ask for the itemized lease. Do the math with the dealer as then he will know that you are an educated consumer.

    Additionally, make sure to include any incentives as part of your Negotiated Sales Price.

  • chwtomchwtom Posts: 31
    edited January 2012
    I am looking to lease a 2012 Overland Jeep 4x4 for 3 years and 15k miles/year. Can you please provide the residual and money factor?

    The dealer told me the following. The money factor equates to a 4% interest rate, the residual is 45%, and Ally bank charges a $795 acquisition fee. That fee seems crazy--is this real? And is Ally who does the lease support for the Jeeps? The MF seems higher than I'd expect, and the residual a little lower.

    Using those numbers the lease payment comes out about the same as the finance payment. I've never seen that before.

    Please help!!!
  • Hi chwtom,
    Jeep does use Ally financial for leasing. We leased a GC Ltd 4x4 (20's and towing pkg) for 36/15, and the variables were as follows,
    MF=0.00046 (=1.1% interest)
    Acq Fee = $695

    Given your query, everything seems reasonable with the exception of MF. You may want to reconfirm the MF with Carman. Alternatively, you may want to check with your dealer to see if there are ways to reduce the MF like most european brands. For example, one pay option or multiple security deposits. The latter, if available, is quite nice as you can pay deposits which are fully refundable as they are returned to you at the end of the lease term, and you 'buy down' the interest charge.

    Additionally, when we leased, the Overland had a 1 pt reduction in RV. We got such a great deal on the sales price on the in stock Ltd, that we ran with it.

  • gotgt3gotgt3 Posts: 85
    Thanks dewarsandsoda! I'll recalc and ask him for specific #s to see if it jives - likely wont - but heck worth a try.

    Re your suggestion about security deposits to buy down the interest rate...
    1. does it apply to leases?
    2. how should one word it?
    3. what are the increments sec deps are usually done in?
    4. how should said sec deps appear on the lease paperwork (I am preparing myself for them saying yes it's on there...mixed in with XYZ - a ploy to later deny there was a security deposit at all).
    5. any amounts "put down" as "security deps" are fully refundable at the end of the lease term 100% guaranteed? Any caveats or fine print related to this? What if you trade in the vehicle with say 3 or 2 payments left to get into a different make/model atogether? Does the sec dep require the car be left on the lot where you purchased?

    Sorry about all the questions thanks in advance!
  • ms5498ms5498 Posts: 1
    Here are some numbers I got over the weekend after some haggling, before I walked out.

    Laredo X w/ E package

    MSRP - 35,114

    Total price- 33,295
    Acq Fee -795.00
    Tax & Fees - 686.25

    Cash -2102.84
    Rebate - 1500.00

    Net Cap - 31173.41

    Residual .53
    Money Factor .38

    $387.41 per month 10k/yr

    I wasn't happy with it. They called me back after and I got them to 360 a month with tax, but they still want 1500 down. My goal is to get it at 1500 down + first month 12k/year, 350 a month with tax, which brings the cap cost to 3100 with acq fee + taxes.
  • Hi gotgt3,

    Again, I do not know if Jeep/Ally Financial offer Multiple Security Deposits (MSD) as a mechanism to reduce MF. I'm familiar with the approach as its offered by several European manufacturers, and we've used in connection with leasing Mercedes vehicles. As a result, I would simply ask Jeep finance if they offer MSD as they can educate you on the deposit amounts and MF reduction per deposit as I can only relay info on Mercedes MSD program.

  • Hello all- thinking about leasing a GC Overland 4x4 with saddle leather and adaptive cruise control and advanced warning package. 36 month/15k per year. I would love to hear your thoughts. Here is where I am at:

    MSRP: $45,490
    Discount to: $42,050 with $1500 lease cash brings it to $40,550 selling price with a residual of $20,470 at lease end.

    They are going way over bluebook on my trade in which is giving me $6408 to "put down", monthly payments including 9% tax is $459.01. Sounds like a pretty good deal....any thoughts??
  • chwtomchwtom Posts: 31
    That's a good deal. I wouldn't pay much for the cruise control package, as I think you'll have trouble getting anything for it when you re-sell. It's probably a nice feature for people that do a lot of long-distance driving, but there probably aren't a lot of people who do a lot of long-distance driving AND want the off-road capability Jeep has.

    But you are getting a solid price for the truck. Also, a friend who works in new car sales told me that most dealers don't go by bluebook for trades. They go by auction values, which are typically 10% or more lower. They usually only hold used cars for 3 or 4 months, and if they don't sell, they send them to auction. So they usually don't like to pay more than auction value since they don't want to lose money.

    So if you are getting OVER blue book, AND you are getting a good price on the truck, you should take it. The Overlands are getting hard to find, particularly with the saddle interior.
  • chwtomchwtom Posts: 31
    Just noticed you are leasing. It is NEVER a good idea to put a big down payment on a lease.

    If you are putting that much money down, and you are getting that good of a price on the truck and trade, you'd be better off taking the 1.9% financing and just selling it in 3 years. If you wreck your truck with that much of a down payment on a lease you are screwed.
  • Thanks for your thoughts, I agree with you 100%, if it wasnt just equity in our current car I would never put that down, I didnt want to try and sell on my own and they are giving us 1500 over good condition for blue book....the one we wanted didnt come with the advance cruise package, but wanted stone white with saddle brown and thats what they had on the lot, so they essentially just thew that in....I looked all over and couldnt find one simiarly equipped and for that price....Thanks!!!
  • nyccarguynyccarguy Stamford, CTPosts: 11,393
    If you are happy with the "trade-in price" for your current vehicle & still want to lease, have the dealership cut you a check for that $6K & change. Then use that $6K towards making your monthly lease payments. But PLEASE, DO NOT PUT THAT MONEY "down" as a capitalized cost reduction.

    2001 Prelude Type SH, 2011 Pilot EX-L 4WD, 2015 Infiniti G37x Q40 AWD

This discussion has been closed.