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2013 and earlier Jeep Grand Cherokee Lease Questions

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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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%
Thanks!
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?
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!
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Using your figures and Edmunds' lease calculator I compute a monthly lease payment of $288 + tax. The calculator at LeaseGuide.com 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.
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).
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
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.
Thanks
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.
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 interested in a 36 month lease, 12,000 mi per year.
Thanks to this board...very informative.
Regards, Riley
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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.
One additional point.
I am eligible for rebates.
Thanks in advance....
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.
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.
I will let everyone know how I do.
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.
Also note, that you usually cannot combine this type of program with the usual $1000 lease loyalty that is typically offered. (My 4 remaining payments easily exceeded $1000 so I really lucked out on the deal.)
If you want to pay off the lease early and then turn around and sell it, that is also an option. But, you will probably have to pay the remaining 4 months plus the buy-out unless, you can make a deal with Chrysler financial (assuming this is your leasing company. If Chrylser financial is not, than all bets are off for the "pull-ahead" program too).
I am enjoying my 05 JGC Limited now (although some minor issues aside.) Thanks to Car_Man's information, I was able to negotiate an awesome deal on a left-over and get out of my 03 early without penalty especially since I would've been without the warranty for the last 4 remaining months (39 month lease, 36 month warranty.)
Good luck.
MSRP: $33555
Invoice: $30427
Rebate $3500
Residual: 52% 17448
Money Factor: .00175
Lease:$384/mo.
Term: 39 months
12,000 year.
Good? How willing would they be to eat the 249 doc fee and 179 VIN etch fee. By the way, in state of CT
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Thank you very much! My price did not include the incentives so I will factor that in. My rough math tells me that $3,500 of incentives applied to the selling price should reduce the monthly (36 month) lease payment by about $100.
BTW -- Chrysler employees get about 11 - 11.7% off Jeep MRSP depending on option levels. You tell them your 'green slip' number (old term) and the dealer shows you the EP price and off you go. Easy and a decent deal. You also are eligible for all incentives
Car_Man - you run a nice board here. I appreciate your work and willingness to help us Jeepiphiles!
Regards, Riley
Riley
Thanks for help
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This lease program is only scheduled to run through January 3rd though. I should have an idea of what its new January lease program is like later on this week. Please feel free to check back with me than and I will tell you want the new program is like.
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