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2013 and earlier Jeep Grand Cherokee Lease Questions



  • gotgt3gotgt3 Posts: 85
    Why? I thought that's what's supposed to be done? Use the trade in value to reduce the capitalized cost so that you dont have to put any additional "down". Am I wrong? And what did you mean in the earlier post about the other guy being screwed if something went wrong?
  • nyccarguynyccarguy Stamford, CTPosts: 11,318
    Because of what the poster above said. If your car is stolen or totaled during the lease, that money is GONE.

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

  • gotgt3gotgt3 Posts: 85
    Yeah but it's gone either way (sunk cost). Even if it weren't stolen or totalled - you never get the money you paid "down" back.
  • chwtomchwtom Posts: 31
    Please trust me, you don't want to put money down.

    The dealership doesn't care whether you put the money into the lease or get a check. They are making the same money either way.

    For you, your choices are getting a check for $6000 and having a higher payment, or putting $6000 in and having a lower payment.

    These numbers aren't real, just for illustration. Let's say your options are to put 6 grand down and have 400 dollar payments, or get a check for 6 grand and have 600 dollar payments.

    6 months after you get the car your car is either totalled or stolen. If you kept the check, you'd have 3600 into the car, and you'd get none of it back. But you would still have the check for 6 grand.

    If you had put the 6 grand as a down payment, you'd have put 60 grand PLUS 6 payments of 400 (total of $8,400) into the car, and you'd get NONE of that back.

    When you total a car or it's stolen during a lease, anything you put in is gone forever. So the rule of thumb is you always want to put as little as possible into the lease on the front end. You'll pay the same amount at the end, but you are putting less of your money at risk if you don't put anything down.

    For what it's worth, this isn't just my opinion, this is pretty much a universally accepted truth in leasing.

    You got a good deal, and you'd in no way be jeopardizing it by keeping your equity rather than rolling it in. The dealer shouldn't care, they are getting the same amount of money either way.
  • gotgt3gotgt3 Posts: 85
    ok I ran some numbers and here's what I get...based on diff dealer not the 5k markup one.

    When you said to "include incentives as part of negotiated sales price (NSP) does that mean the NSP should be ###-incentives? It seems like dealers are keeping those rebates separate from the "sales price" and this is likely inflating the monthly payment.

    40.5K MSRP, res % 49, term 36mo, SP 38.3k, acq fee 695
    I get about 516/mo give or take a bit for rounding sake...
    Money factor .0001

    I still feel this is inflated though.
  • I echo chwtom's sentiment as you want to put $0 or as little down as possible when leasing as you should not be deceived by a resulting reduced monthly payment. You would be better served to treat the trade in as a separate transaction and invest the money you receive on the car and/or use it towards paying your monthly lease payments. Please remember that a lease is an 'extended' rental so you have no ownership of the vehicle, and as chwtom notes, if the car is stolen or totaled, your downpayment is gone.

  • Hi gotgt3,
    You are correct. My assumption is that the negotiated sales price includes all the applicable discounts (i.e., what you negotiate + any incentives, dealer cash, etc.)

    A MF of 0.0001 (0.24% interest) is quite good. While you likely can do better on the negotiated sales price, the fundamental problem with the GC is the low RV. And, that's out of your control.

    You may want to consider a 2012 ML350 Bluetech as that is built on the same platform as the GC. While the MSRP maybe higher than the GC, the RV on Bluetech is significantly higher (~15-20%), and you can likely use MSD to reduce the MF. As a result, for a modest increase in monthly payment, you will get a much more expensive SUV. Unfortunately for me, the 2012 ML350 Bluetech wasn't available when we needed an SUV, so we went with the Jeep. We still love the GC, but from a monthly payment standpoint, I will likely consider the Mercedes when my lease expires.

    My two rupees.

  • Carman I am looking for the Feb lease rates and MF for an Overland Summit with 12k and 36 months. I also heard there is $2,500 in dealer cash for leases?
  • I am investigating the $319 advertised deal. If you look on the right margin of this page, the advertisement is probably there. It is for a basic 4x4 laredo $28,995 plus uconnect/bluetooth $495 plus destination $825 = $30,315. (Note 1: destination has increased to $925. Note 2: I live in west central FL.). If you click on the "Legal>" area of the bottom right corner of the advertisement you will note it's a 12k mile/yr lease, and the $2499 down payment includes first month's payment. "Tax, title & license extra". Finally getting to my question - is a $795 "acquisition fee" extra? - included in $2499? - typical? The legalese does not mention acquisition fee at all, although it does say "Dealer's actual terms may vary". I do understand that the residual is 52% and the mf is .00068 (equal to 1.632%). I've done the calculations and it appears that invoice less the $1,500 lease incentive less $2,180 down payment ($2,499 less first month's payment of $319) does get you to about $319/mo. the acquisition fee extra or could it be part of the "dealer contribution" (meaning the sales price is invoice less incentive less acquisition fee)? Not sure if that all makes sense. If anybody out there got the $319 deal - did you pay acquisition fee on top of the $2,499 or no? Thanks for help car_man, kyfdx, or anyone else out there.
  • jg92663jg92663 Posts: 1
    edited February 2012
    hi all.
    so i already signed a lease and am driving my car, but i figured i would post what i paid to see if this was a decent deal...

    i am located in Long Beach, CA.

    first off the vehicle
    4x2 laredo X
    26X package
    E group
    trailer tow group
    power single pane sunroof
    430N media center
    msrp on sticker with destination charge (925) - $37,060

    total agreed sales cost - $34,000
    theft code 3 year replace - $350
    service/theft insurance -$674
    GMAC administrative fee - $795
    - gross capitalized cost -- $35819

    i signed a 3 year 36000 mile lease
    with $3000 cash down and $1500 cash rebate, my monthly payments are $411.54 including tax and the theft/service insurance...this is for 35 payments as my $3000 up front included the 1st months payment.

    my buyout price after the 3 years is $21,400

    does this sound like a good deal?
  • 12chiro1212chiro12 Posts: 2
    edited February 2012
    Carman, thank you for all you do here!
    I live in NE Florida, Can you provide me with the Lease Rate, and Residual (10k, 12k, 15k) for
    2012 Jeep Grand Cherokee Laredo 4 x 2 ; 24X package. 24, and 36 months.
  • Can any one help me with the info I requested on post #867. I have been negotiating the last 2 days and need help to make sure I get a fair deal.
  • Not sure I can help, but I can share some info. as a followup to my previous post. I wasn't able to get the advertised $319 deal. What I do have is this - Laredo 4WD with E pkg and tow pkg. MSRP $32,515. Agreed price is invoice ($30,983) less rebate ($1,500) equals $29,483. At this moment, I don't know exactly what dealer and/or acquisition fees are in my $3,000 down payment, but I do know the 1st payment is in there and I do not have to pay anything over and above the $3,000 (it includes tag transer, etc.). I owe 35 payments of $332 plus 7% tax for $355 total payment. Residual is 52% of MSRP ($16,908). 12k miles/yr. Comment on your deal - $411 including tax with $3k down on a Laredo X doesn't sound too bad to me. I have no comment on the theft code or theft/service insurance costs. Your residual seems high which does produce lower payments, so that is good. Even though most of the lease payment is the depreciation [(agreed price less downpayment minus residual)/#payments], the finance fee [(agreed price plus residual)Xmoneyfactor] can vary a lot between customers and dealers. Note - the "downpayment" amount in the depreciation formula is only the portion of the downpayment that goes to reducing the capitalized cost of the vehicle and would not include any acquisition, gap insurance, dealer, or any other fees. Hope that helps - at least it is a response. Good luck.
  • Hey Car_Man thanks for the help on my Lexus Lease, I am looking at leasing a Jeep 4x2 Laredo X was wondering if you had the money factor and residuals for 3year/15k miles? Thanks again.
  • jaws4jaws4 Posts: 11
    Hi Folks,

    I've been lurking on this great website quite a bit over the years, but never much of a poster. But, got what I think is a great deal and I wanted to make others aware of it in case they want to duplicate. Here it is...2012 JGC White/Black E pkg + Uconnect (brand new 14 miles)

    MSRP $28,315
    Discount $5,500
    Purchase Price $22,815
    All Fees/Taxes $1,000 (so net net discount would be $4500)
    Upfront Payment $802 (1st month pmt plus $500 - We didn't pay the $500 because we used the Realtor rebate available from Chrysler)
    35 remaining payments of $302 (including tax, $283 pre-tax)
    $395 Lease End Fee (buyout or return)
    No security deposit
    MF - .000679
    RV - .51
    Term 36 months/12k per year

    There was no negotiating necessary to get this deal. It is what is advertised on the Dealer's website. The dealer was extremely professional and performed exactly as I had hoped they would. If you are interested, there are probably 6-8 more base JGC available at this price (only white and silver on the lot currently in base model - they have many other better equiped units/colors but lease deals aren't quite as good because the $5500 discount remains the same on all units). This deal will probably change a bit on March 1 with new residuals, etc, but will still be a good deal after that I suspect.

    Dealer Name - Ed Voyles Jeep, Atlanta/Marietta, GA
    Salesman - Jeremy Cloud, Internet Sales

    I recommend these guys.

    * For those of you interested in leasing, watch your back if it's Ally. They charge a huge fee ($2,500) at the end if you elect to buy the vehicle rather than turn it in.

    Thanks and good luck! :)
  • The Jeep web site shows a lease for $419 plus $3500 down on a 12K/yr lease for a Limited. I've asked two different dealers in town and both say they have no idea how to get to those numbers and using the Ally web site, they are coming up with monthly amounts around $560. So do the deals on the website amount to deceptive advertising or do the dealers here not know, or care, what they're doing?


  • jaws4jaws4 Posts: 11
    Hey Lou,

    I don't have the March lease figures, but I did get the figures for a limited in Feb before we did the base model deal above, and if you go with the Ed Voyles guys (if you are anywhere near Atlanta), by my math the $419 plus tax should be a layup. In fact, by my spreadsheet, you should be able to get there for about $1500-$2000 down, not $3500.

    I'm not an expert here except out of necessity, so I would call Jeremy and tell him your interested in the deal Jay got, but on a limited and see what he can do for you. Watch that Ally buyout fee, it bit me in the rear, but Jeremy and Ed Voyles helped resolve this by switching us to US Bank.

    PS - when we did ours a couple of days ago, said $309 or $319 with $2500 down for a stripper + Uconnect. Our deal is $282 with $500 down. The deals are out there, you may just have to travel a bit.

    Good luck.
  • jeepchi1jeepchi1 Posts: 1
    I'm looking for a little help. I'm looking to lease a Jeep GC Laredo X (26X package, 430N navigation, power sunroof, trailer tow) in Illinois and cannot tell if this is a good deal or not. I haven't leased before in Illinois and the taxes seem to be confusing me. I left the dealership with a printout of the figures that they ran.

    MSRP 38,765

    Price 35,500
    Rebate 1,500.00
    Cash 1,500.00

    Residual .54
    Rate: .40
    Acq Fee: 795.00
    Adj Res: 20,933.10

    Trade #1 4,000.02 (4k for the trade on my honda, to payoff the 4k I still owe on it. Yuck)
    Payoff #1 3,940.46

    Tot Cap Red 1946.50 ?
    Tot Init Pmt 3059.56 ?

    Govt Fees 145.00
    Total Taxes: 4,392.86
    Doc Fee: 161.35

    Monthly Payment: $513.06
  • webiconswebicons Posts: 3
    Hello Carman and Forum Members!

    All comments welcome on the following offer I received:
    2012 Jeep GC Laredo
    26X Package
    Laredo E Group
    Dual pane sunroof
    Media Center

    MSRP: 38,810 (includes Destination)
    Negotiated: 36035.00
    15000 miles
    50% residual
    0.0001 MF
    Bank Fee: 695.00 - in Neg price
    Destination: 925.00 - in Neg price

    Drive off: 853.47 (First month, DMV,tax, tire)
    Monthly: 498.97

    They say that this is bottom line. Our corporate accounting dept is saying that this number is too high.

    Any thoughts?
  • i pay 409 for a 2012 larado x- no money down
  • webiconswebicons Posts: 3
    Thanks for the reply.

    Disappointed. The salesman said that they were "at invoice" blah, blah, blah...

    Do you live in the tri-state area? I would love to speak to the dealership that you got your deal from.

    Much appreciated.
  • its2loudits2loud Posts: 8

    How did you get this deal? The lowest I can find in my area for 2012 Laredo X is 488 36yr term 12k mileage. No money down.
  • its2loudits2loud Posts: 8
    Capitalized Cost: 29,563.00 Cap Reduction: 1,509.75
    Bank Fee: 795.00 Doc Fee: 45.00
    Total Cap: 30,358.00 Tax: 132.10
    Cap Reduction 1,509.75 License Fees: 280.00
    Net Cap 28,848.25 Gov. Fees: 8.75
    Residual 51% 15,766.65 Advance Payments: 407.44
    Total Depreciation 13,081.60 Total Drive Off: 2,383.04
    Less Rebate: 1,500.00
    Depreciation: 363.38 Cash Due on Delivery 883.04
    Rent: 11.28
    Subtotal: 374.66 Interest Rate: 0.600
    Tax: 32.78 Term: 36 mos.
    Monthly Payment: 407.44

    This is for a 2012 26e with the Security and Conv. Group and Laredo E Group 36month term, 12K miles.
  • bgcharbgchar Posts: 1
    edited March 2012

    Can you tell me the residual% and MF for a 2012 Jeep Grand Cherokee (4x4) Limited and also for the Laredo X. I was quoted at 49% and 47% respectively but an earlier poster in this thread said he got a 51% residual on a Laredo.

    Also, any incentives I should be aware of?

    Thanks in advance.
  • bgchar,

    I cannot answer the questions you have about leasing but as for incentives you can check the website, and enter your zip code to find out what incentives are being offered nationally and within your area.

    Hope this helps.

    Customer Care
    Chrysler Group LLC
  • webiconswebicons Posts: 3
    Hello its2loud,

    It was pretty strait forward. The standard back and forth. It looks like you can get a better deal but out of the three dealerships in my area it seems to be from 480 - 518 for this configuration at 15,000 miles.
  • its2loudits2loud Posts: 8
    Thanks for the response. I've been bouncing from dealer to dealer trying to get a straight forward offer from any of them and it's not happening. So frustrating. Does anyone know if the $1000 Jeep incentive is given back to the dealer from the manufacturer? If this is the case then there's no way I would ever agree to a purchase price above "invoice".
  • dman123dman123 Posts: 8
    lot of different mf and residuals posted here. anyone know the march mf and residual for a laredo x (4x2) 15k miles? thanks in advance
  • bassmiesternjbassmiesternj Posts: 34
    edited March 2012

    What was the MSRP of that Jeep ?

    $31,072.00 ?
  • its2loudits2loud Posts: 8
    $30,915 MSRP in 90046 zip
This discussion has been closed.