Jeep Liberty Lease Questions

CarMan@Edmunds

Hi everyone. Please use the following discussion to post any questions that you have about leasing a Jeep Liberty. Thanks.

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jacknyc

Car_Man:

Still shopping for the right small sport ute as I way waiting for the new RAV 4 in 2006.

What's the money factor and residual on the 2006 Jeep Liberty Limited 4x4? I'm in NY, need 24, 30, and 36 months and 10/12,000 miles.

Thanks,

Jack

jr32

I am thinking about leasing a 06 Liberty Renegade 4x4. The lease price I got from the dealer is $300 per month for either 27 or 39 months (same price either way).

- $3500 down (trade-in)
- $300 per month, includes all taxes, title, plates..... everything.
- 12k per year. Plus all maint (oil.....)
- sticker price for the Liberty is 27,705.
- they figured in the $2500 incent, no security.

Does this sound like a good deal?

CarMan@Edmunds

Hi Jack. If you were to lease a 2006 Jeep Liberty Limited 4WD through Chrysler Financial right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00212 and 61%, respectively. The numbers for an otherwise identical 30 month lease should be .00289 and 57%. The numbers for an otherwise identical 36 month lease should be .00289 and 54%. When negotiating your lease on this truck, don't forget to take the $1,500 lease cash and $1,000 bonus cash, $2,500 total into account.

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CarMan@Edmunds

Greetings jr32. You never mentioned the selling price or MSRP of the truck that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are.

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reel31

Hi,

Is it reasonable to expect a $350/month or less lease payment on the following:

2006 Liberty Limited
28G package
Heated Seats
Sunroof
36 month, 12,000 mile lease

With the current incentives of $2000 lease cash and $1000 loyalty (I have a jeep now)

Right now, I have a 2003 Jeep Liberty Limted whose 39 month 15,000miles/year lease is expiring in January. I'm under mileage and the car is in excellent condition. The residual of my current car is about $12,500. I figure that the dealer could sell it used for 16-17K if they figured something where they bought out my car etc.

Taking all this in to account, I figure that a $350/month or less new lease payment is realistic.

Can anyone set me straight?

aaron_t

Liberty has $2000 rebate + $1500 CFC Bonus + $1000 lease loyalty. Say you can get $1500 off MSRP, I think <$300mo is easy to get for 24mo/12k mile lease, maybe $250. I have seen Renegade (base X package + automatic) advertised for $1899 one time payment (plus taxes/lease fees). That includes an extra $1000 employee bonus cash + employee price which is about a 10% discount from MSRP.

thomasw

I am negotiating a lease on a Liberty CRD, which will have to be ordered from the factory. If we reach a deal, the dealer told me that the lease money factor they are giving is only an estimate because Chrysler Credit won't lock in until delivery.

Is this true, or should I be concerned that the dealer is going to try to force me into a higher money factor when I go to take delivery?

THANKS!

dmjjpy

Car_man, could I please get the residual and money factor for a Liberty CRD 4X4 for a $0 down/24 month/12k miles lease?

Thanks!!!

CarMan@Edmunds

Hi thomasw. what your salesperson told you probably is true. While some banks, like BMW Financial Services, will lock in lease programs on ordered vehicles, it is very possible that Chrysler Financial (now known as DaimlerChrysler Financial Services) will not. If you are concerned that the dealer that you are working with is going to try to mark your truck's money factor up, stop back and ask me what it is at some point during the month that you expect to take delivery of it. I will be happy to let you know what its lease program is like. You can confront your dealer with this information if they try to pull anything.

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CarMan@Edmunds

Hey dmjjpy. If you were to lease a 2006 Jeep Liberty Sport Diesel 4WD through DamilerChrysler Financial right now for 24 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00242 and 53%, respectively.

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beth6

hey car_man
What can I expect the money factor and residual for a 2006 liberty CRD 4x4 0 down 36 months 12k miles Thanks

CarMan@Edmunds

I see that you're considering a diesel, beth6. That's probably a good call. If I was in the market for a new vehicle, I would strongly consider getting one as well. If you were to lease a 2006 Jeep Liberty Sport Diesel 4WD (the numbers for the Limited version are different) through Chrysler Financial right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00242 and 55%, respectively.

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thomasw

Thanks Car_man!

One other question, what is the current (lease) acquisition fee from DCFS?

In advance, thanks again!

CarMan@Edmunds

You're very welcome, thomasw. Unfortunately, a few months ago DaimlerChrysler Financial Services raised its base lease acquisition fee to $700 on all models. At least it no longer requires a security deposit on leases.

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ball_breakr

Hi!

Car_man (and others),

Can you get me the current money factor and residuals on a 2006 4x4 Automatic Liberty Sport? For both a 27 and 36 month lease, with 12k miles/year? Jeep seems to be pushing the 27 month leases, and I'm trying to figure out which is better for me.

Thanks,
Pat

CarMan@Edmunds

Here you go, Pat. According to the latest information that I have seen, if you were to lease a 2006 Jeep Liberty Sport 4WD through Chrysler Financial right now for 36 months with 12,000 miles per year, its buy rate lease money factor and residual value should be .00191 and 51%, respectively. I haven't seen any info on 27 month leases of this truck lately.

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tmcameron

Hello Car man,

Have you seen any current money factors and residuals on a 2006 Jeep Liberty 4WD Sport or Limited for a 27 month lease, 15,000 miles/year? If you don't have any info on 27 month, do you have info on current 36 month leases?

Thanks!

wickdwallflowr

A dealer is offering me the following deal.

2006 liberty sport
2k down
12k miles/yr
27 months

total monthly payment is $200.

I need to know if this is fair?

Thanks!

CarMan@Edmunds

I certainly have, tmcameron. If you were to lease a 2006 Jeep Liberty Sport 4WD through Chrysler Financial right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00167 and 48%, respectively. The numbers for an otherwise identical lease of an '06 Liberty Limited 4WD are .00179 and 47%. When negotiating your lease on this truck, keep in mind that DaimlerChrysler is currently providing $2,500 lease cash on it. This cash will help you to negotiate an attractive capitalized cost.

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CarMan@Edmunds

Hello wickdwallflowr. You never mentioned the selling price or MSRP of the truck that you are interested in leasing. These are important numbers for you as a consumer to know for two reasons. First, the selling prices of leased vehicles can be negotiated, just as if you were paying cash for them. Without knowing this truck's selling price in relation to its MSRP you don't know how much of a discount you are getting on it. The second reason is that one needs the selling price and MSRP, including the destination charge, of a vehicle to calculate its lease payment. I would be more than happy to give you my opinion on this deal if you let me know what these numbers are.

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wickdwallflowr

the msrp on the sticker is 24750.
the cap ost is 19605.

I'm supposed to close the deal today!!!!

HELP!

rajinder75

I am going to cross the limit of 36000 miles on my leased Jeep liberty 2004. What should i do to avoid 25cents per mile for extra miles.

libbmann

Stop driving.

CarMan@Edmunds

Hi rajinder75. I am sorry to hear that you are going to exceed your leased vehicle's mileage allowance. While libbmann's curt answer to your question, "stop driving", was funny, it really is the only way for you to avoid having to pay an excess mileage charge. The only other way is for you to purchased your leased Liberty at the end of its term. Consumers who purchased their leased vehicles do not have to pay any sort of penalty for excess mileage or excess wear and tear.

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mbartels11

Hey Car_man,

I'm looking at a Jeep Liberty Limited 4dr SUV 4WD with package 29G and GWA. What is the money factor and residual for 36 month lease and 12,000 miles/year? Also, does the $2K in customer cash apply here as well?

I was thinking I could negotiate to invoice and get the $2K in cash to reduce the cap cost. Does that sound realistic?
Thanks!

CarMan@Edmunds

Hey mbartels11. Chrysler Financial's current buy rate lease money factor and residual value for a 36 month lease of a 2006 Jeep Liberty Limited 4WD with 12,000 miles per year are .00179 and 45%, respectively. DCX is providing $2,000 lease cash on this truck right now. Make sure that the dealer you are working with is subtracting this incentive from your truck's employee purchase price to arrive at the capitalized cost for your lease.

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cnote2

looking for liberty 4x4 limited or base 4x4 money factors and residuals, also what kind of lease cash is there on these? Thanks

cnote2

sorry forgot important info, 24/36 month 12k a year.

CarMan@Edmunds

Hi cnote2. Chrysler Financial's current buy rate lease money factor and residual value for a 24 month lease of a 2006 Jeep Liberty Sport 4WD with 12,000 miles per year are .00097 and 50%. The numbers for an otherwise identical 36 month lease of this truck are .00229 and 45%. Its current buy rate lease money factor and residual value for a 24 month lease of a 2006 Jeep Liberty Limited 4WD with 12,000 miles per year are .00091and 49%. The 36 month numbers for this truck are .00223 and 44%. DaimlerChrysler is currently providing $3,000 lease cash plus $2,000 Chrysler Financial bonus cash, $5,000 total, on this truck. If you get a model that has been in dealer inventory since April 1st or earlier, there is an extra $1,000 on it.

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bardototal

I understand that off the $26,050 retail price for this model tehre is presently a $3000 rebate to clear the 2006 off the lot, you get a $1000 for leasing through Chrysler, and another $1,000 incentive. I was quoted a $250 per month lease for 12000 miles. Should this include the taxes too? Apparently there is a AAA discount as well but I am not sure how much that is worth. I thought I could get this down closer to $200 a month with all included, no deposit and just the first month's payment and license fee. Is that unrealistic?

All these rebates come off the cap cost but should I negotiate anything else - what is negotiable. Thanks Car Man.

phillybilly

Just wondering if anyone got back to you about your inquiry about the lease amount. My son and I are trying to negotiate almost the exact same deal and our numbers for the monthly cost are much higher than what you have. We are in the suburban phila. area. Where are you? Can someone please respond to barbototal's numbers. We go back on Monday and I want to be well versed with knowledge. Thanks.

CarMan@Edmunds

Hi bardototal. In addition to all of the cash incentives that are available on this truck, it was recently switched to $5,000 dealer cash for the month of December, you should be able to negotiate a dealer discount on it as well. Always remember that the selling prices of leased vehicles are negotiable, just as if you were paying cash for or financing them. Good luck in your negotiations and let me know if you have any other questions.

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jakpenn

Car man
can you tell me what the cuurent lease buy rate is on a 2006 Jeep liberty? I think I have the other components figured out, but the buy rate they are quoting me seems high for tier one credit...thanks!

CarMan@Edmunds

Hi jakpenn. Unfortunately, DaimlerChrysler is no longer providing lease support on 2006 models. You can still lease one through Chrysler Financial, but you will have to use its standard lease money factor. Its money factors vary depending upon how long you lease for. For now I will assume that you are interested in a 36 month lease. Let me know if you want something different. Chrysler Financial's current 36 month standard buy rate lease money factor is .00332 for consumers who qualify for its top credit tier. When negotiating your lease on the 2006 Jeep Liberty that you are interested in, make sure to take the $5,000 dealer cash that is currently available on it into account. this incentive will help you negotiate an attractive capitalized cost for your lease.

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fletcher3

Hi my fiance just signed a lease for a 2007 jeep liberty sport 4x4 and I was hoping to get some feedback. She put 1279 down which included the first month's payment and her monthy payments are 279 a month for 15k miles per year. The buyout at the end of the 39 month lease was 10688. I don't have the contract in front of me so I don't know what the money factor was but I know she recieved 4.5k in rebates( 1k lease loyalty, 3k liberty promotion, 500 dealer Pres special=4.5k) Additionaly the MSRP was apx 25,500 and the agreed apon value was apx. 23,600. She is charged .15 cents a mile if she goes over.

First was this a good deal in todays market?

Second is the buyout at the end a fair price?

Thanks for your responses,

Dave

fletcher3

Here are some more specific numbers from the contract:

38 monthly payments of 279.00
total monthly payments of 10881
Other Charges: 425 (vehicle turn in fee if I don't purchase)
16806 total payments

5492.51 due at lease signing
4500.00 total rebates and non-cash credits
1279.01 cash due at signing

Gross Capitalized cost:
23156.92 (agreed upon cost of vehicle)
25401.89 (any items payed over lease term)

adjusted capitalized cost 19909.38
residual value 10649.10

depriciation and amortized amounts: 9260.28
rent charge 1620.72
total of base monthly payments: 10881.00

lease payments: 39 (one paid in down payment)

total monthly payment= 279

Excessive wear and use: .15 per mile over 48750

Estimated official fees and taxes: 2158.77

NJ DISCLOSURE:
MSRP= 25355.00
Total cost of lease if you do not defualt and exercise the puchase offer at the end of the lease term 27455.11

Well sorry If I put in a lot of data you didn't neeed but I have never leased a vehicle before and I was curious to if we got a good deal and if not I want to know what to look for if I choose to lease in the future.

Thank you all for your time and consideration.

fletcher3

I just notice a mistake I made in the above the figures:

5492.51 due at lease signing
should be
5779.01 total due at lease signing
(5492.51 +279 1st month + 7.50 misc.)

Here is a mistake I believe the dealership made on the contract:

I noticed that if I added up
box 1 5779.01 due at lease signing
box 2 10881.00 monthly payments over life of lease
box 3 turn in fee not applicable unless turned in

box 4 total payments is 16806.01
but shouldn't it be 16660 by adding box 1 & 2????

does the 146 dollar discrepency mean anything?

I pulled the paperwork from her old lease and box 1 & 2 added up to equal box 4.

Anyways just wanted to know if it was a clerical mistake or if I am missing something.

Thanks Again,
Dave

fletcher3

Hi, I am new to the forum and I mistakenly started my own thread under jakpenn's thread about lease to buy ratio. If anyone could please give me some info on the lease I talked about above I would greatly appriciate it.

(if a moderator could move my questions into this thread it would be great too!!)

Thanks,
Dave

fletcher3

Alright, I could have m ade a mistake but given the formula I found on the web I think I calculated the money factor on the deal above to be .001359 (if I take that and multiply it by 2400 I get equivelant 3.2% interest rate) Right now they are giving out a 3.9 60 month interest rate on the Liberty so. . . it I think I did alright???

Anyways, if anyone can check my math and my numbers please let me know how we did on this lease.

It appears that my residual is low but I still don't know how to factor it. Do you go off the agreed purchase price, the MSRP or do you take the Gross Cap Cost minus the incentives you didn't pay for?

Thanks Again,
Dave

fletcher3

here are the formulas I used:

Monthly Finance Fee = Lease Charge ÷ Term

Finance Fee = ( Net Cap Cost + Residual ) × Money Factor

Depreciation Fee = ( Net Cap Cost &#150; Residual ) ÷ Term

$ fac = Lease Charge ÷ ( (Net Cap Cost + Residual) x Term )

Interest Rate = Money Factor x 2400

Total Monthly Payment = Depreciation Fee + Finance Fee

fletcher3

Ok last post till I get a response (just kidding) After doing some reading it appears I should use the MSRP in computing the residual so:

I came up with 42% on a 39 month 15k a year lease ( I think)
seems low but .. .

I guess that is the least of all evils becuase from what I understand if you have equity at the end you can re-coup it with a trade-in or buyout/sell at the end of your lease.

Give me your thougts:
Dave

fletcher3

man is anyone out there with some info?

I should mention the liberty was leased in nothern new jersey (nj)

CarMan@Edmunds

Hi Dave. The selling price that she was able to negotiate looks good to me. The truck's lease-end purchase option price is set by the bank that she leased it through, which is most likely Chrysler Financial. Individual dealers do not have the authority to alter vehicles' lease-end purchase prices. In fact, the higher your truck's end of term purchase option price is, the better it is for you as a lessee. That is because the higher a vehicle's purchase option price is, the less depreciation you have to pay for over the life of your lease and the lower your monthly payment will be. As long as the dealer used Chrysler Financial's current buy rate lease money factor to calculate her monthly payment, and they probably did because Jeep dealers seem to rarely mark up money factors, this looks like a good deal to me.

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CarMan@Edmunds

Hey Dave. Chrysler Financial's current 39 month buy rate lease money factor and residual value for a 2007 Jeep Liberty Sport 4WD with 15,000 miles per year are .00136 and 42%, respectively. Vehicles' residual values are based upon a percentage of their full MSRPs, including the destination charge and the MSRPs of any options that can be residualized.

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fletcher3

So, in your opinion based on the numbers I provided I got a good deal correct?

4jeeps

Car man, Do you also have the current 39 lease money factor and residual value for an 07 Liberty Limited 4x4 with 12k miles? Thank you very much!

mr_n

Hey everyone,
I'm new in this forum and I don't know much about leasing. I'm really interested in leasing a Jeep Liberty. It could be up to 3 years old (2004 to 07). I would like your advice before I go to the dealership and make mistakes. I've been reading your postings and you suggest to don't give any down payment.Can you explain that please?
Please help me out here and give me advice about how to get a good deal. Also, can you pease explain what is the "lease money factor and residual value?"
Thanks for your help

CarMan@Edmunds

Hello 4jeeps. Here is the information that you're looking for. Chrysler Financial's current buy rate lease money factor and residual value for a 39 month lease of a 2007 Jeep Grand Cherokee Limited 4WD with 12,000 miles per year are .00211 and 48%, respectively. When negotiating your lease on this truck, make sure to take the $3,500 lease cash and $1,000 bonus cash that are available on it right now into account. They will help you to negotiate an attractive capitalized cost for your lease.

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CarMan@Edmunds

Welcome mr_n. Since you are new to the world of leasing, you definitely should check out the following informative articles that are available here at Edmunds.com prior to visiting any dealers: 10 Steps to Leasing a New Car and Calculate Your Own Lease Payment.

I personally always advise consumers against making down payments on leased vehicles. Those who make them risk losing them if their vehicle is totaled in an accident or stolen and never recovered.

Check out the aforementioned articles and I would be happy to answer any specific questions that you have after reading them.

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lindamarie3023

Hi - my name is Linda and I just have a quick question. I have a car that has "negative equity" - quite alot as I bought it thru JD Byrider (I will NEVER do that again). Anyway, I was looking to trade it in, but my credit isn't strong at all (550) and I called a car dealer and she said that I owe too much and since my credit isn't that strong, it wouldn't work. She said that I could possibly lease a car and that the Jeep Liberty has a big rebate to absorb some of the costs. I know nothing about leasing..can anyone help me or offer any suggestions? Thank you so much