2013 and earlier Jeep Grand Cherokee Lease Questions

alexv2 · January 2006

Car Man, still would love to get your analysis of my lease situation. thanks in advance.

newjeepma · January 2006

I am inquiring about leasing info for an 05 Grand Cherokee 4WD with leather and a moonroof. Am I correct in assuming that 05's are serving up better deals now that the new year has arrived? Or are 06's comparable? What would I expect to pay in Massachusetts for a montly lease payment for this vehicle and what should I watch out for. I currently have an 00 grand cherokee with 46k, should I trade it or sell it outright, though there seems to be a ton of these on the used market right now.....any help is appreciated...

njdealguy · January 2006

Any word on what the lease deals are now for a left over 05 Jeep Grand Cherokee Limited?

Thanks in advance.

mastercraft1 · January 2006

I am strongly considering leasing a 2006 JGC. I have found all the posts to be very imformative, however, I need a claraification:

To compute the residual value, do you take the % times the MSRP or the final selling price ( before rebates )?

Thanks for your help!

kyfdx · January 2006

Residual percentage is multiplied by the MSRP..

mastercraft1 · January 2006

Thanks for the quick reply, kyfdx.

I can now go into battle armed to the teeth with all the lease facts and figures to make the dealers squeal!

Knowledge is Power!!!!!

mastercraft1 · January 2006

I have been offered a Chrysler Financial lease deal and had some questions. I live near Dayton, Ohio:

Here are the facts:

2006 JGC Limited
MSRP - 36,955.00
Invoice - 34,277.00 ( WITHIN this invoice price is 460.00 worth of " advertising " from the Cincinnati region according to the salesman )
3,500.00 in buyer incentives
700.00 - Acquisition Fee
27 months
59 % residual
15,000 Miles / year
Money factor - .00126
Tax - 6.5 %
Doc / title fee - 42.00
Turn-in fee - 450.00
Monthly Payment - 462.72

Dealer is offering to sell for invoice ( including the so-called " advertising " costs),

I am OK with all of the numbers, except the following:

Acquisition fee of 700.00, the " advertising fee " of 460.00 within the invoice price and the 450.00 turn in fee.
Are these 3 fees " normal" or is the dealer trying to gouge me?

If there is any more info you need to give me some sound advice, let me know.

Thanks!

CarMan@Edmunds · January 2006

Alexv2, are you asking me what I think your lease payment should be like for this truck? Let's say that you were able to lease the 2006 Jeep Laredo 4WD that you are interested in for $500 over invoice. That would mean that its MSRP is $29,135 and its selling price would be $23,745
(invoice of $26,745 minus $3,500 in incentives + $500). Using these numbers, I estimate that your 36 month, 15,000 miles per year, zero down, pre-tax monthly payment for this truck should be around $315.

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CarMan@Edmunds · January 2006

Hello newjeepma. Well, you are sort of correct. Yes, you definitely will be able to negotiate a lower selling price on a 2005 Jeep Grand Cherokee than you will be able to on a 2006 model right now. However, this late in the model year it will actually be more expensive to lease an '05 model than it will be to lease an '06 model. I don't believe that DaimlerChrysler is providing any sort of lease support on '05 Grand Cherokees any longer. If you want to lease one, you would have to do so through an independent bank. The bottom line is, the 2005 model will be the better deal if you want to pay cash or finance and the '06 model will probably be the better deal if you want to lease.

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 work up a sample lease payment on the Grand Cherokee that you are interested in for you if you let me know what these numbers are.

As far as your trade goes, consumers are usually able to get the most money for their used vehicles by selling them on their own. If you don't want to deal with the hassle that is associated with doing so, you can always trade your truck in. Just have the dealer cut you a check for it rather than use the proceeds from your trade as a down payment on your lease.

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CarMan@Edmunds · January 2006

Hi njdealguy. You definitely will be able to negotiate a lower selling price on a 2005 Jeep Grand Cherokee than you will be able to on a 2006 model right now. However, this late in the model year it will actually be more expensive to lease an '05 model than it will be to lease an '06 model. I don't believe that DaimlerChrysler is providing any sort of lease support on '05 Grand Cherokees any longer. If you want to lease one, you would have to do so through an independent bank. The bottom line is, the 2005 model will be the better deal if you want to pay cash or finance and the '06 model will probably be the better deal if you want to lease.

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CarMan@Edmunds · January 2006

Hi mastercraft1. Rather than letting the advertising fee bother you, just think of it as part of your truck's total price. If the total price that you are paying for this truck, including the ad fee, is less than what you would have to pay for one through another local dealer then go for it. Afterall, it doesn't really matter how the price breaks down if it is the overall best deal. As far as the lease acquisition fee goes, Chrysler Financial used to charge a $500-something acquisition fee on leased vehicles. On January 1st, it decided to raise its acquisition fee to $700, but no longer charge consumers security deposits on leases. It used to charge a security deposit equivalent to vehicles' monthly payment rounded up to the nearest $25 increment. The $450 disposition, or termination fee, is also levied by Chrysler Financial. Dealers do not have any authority to waive acquisition or disposition fees.

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marley12435 · February 2006

I was just wondering what i would be looking at paying for a 24/27 month employee plan lease on an 06 LAredo MSRP around $29,500 for a lease with 15,000 miles and doing an easy-pay lump sum payment for the 2 years or I am better off just making the monthly payments?

psdutch · February 2006

Is it acceptable or possible to finance the acquistion fee into the negotiated price of the car/lease? Or, is that something that HAS to be payed in cash when signing?

Will the money factor likely stay at .00126 through the end of the month if you are financing through Chrysler?

Thanks for all of the great and helpful advice.

CarMan@Edmunds · February 2006

Hi marley12435. In order to decide whether you would be better off paying for your entire lease in advance or just leasing conventionally, you need to compare the cost of the two. Find out exactly how much you would have to pay per month to lease this truck normally and then find out what the lump sum payment would be. Once you know what the monthly payment would be for a regular lease, you can multiply it by the number of months the lease is for and arrive at the total cost. Compare that number to the cost of an advance pay lease, making sure to take into account the opportunity cost of not being able to invest your money with the one pay lease, to see which deal is better.

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CarMan@Edmunds · February 2006

Hi psdutch. It is absolutely possible to roll your vehicle's acquisition fee into its capitalized cost when leasing. Many lessees do so. I suspect that it will happen even more frequently now that Chrysler Financial has raised its base acquisition fee to $700 (as a trade off for the increased acq. fee, it no longer charges a security deposit on leases). The disadvantage of doing so is you have to pay interested in it, but the advantage is that you don't risk losing the money that you paid out if your vehicle is stolen and never recovered or totaled in an accident.

DaimlerChrysler's lease program for the Jeep Grand Cherokee is scheduled to run through February 28th.

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ahhdirts · February 2006

I am new to leasing, but I do pretty much understand the calculations and logic.

However, I was wondering how much the situation would be changed considering that I would be getting the Employee Choice program.

Here's this current months numbers:

2006 Laredo
MSRP: $29,830
Emp. Price: $26,655
Lease Term: 27m
Payment: $199

199 presumes 2000 down, 1000m/month, all incentives and lease loyalty included.

I WILL NOT get the lease loyalty.

What tips would you know-it-alls give me?

Will my deal be simple, cut and dry, no hagling? Or do I still need to know a few tricks to save money?

And to play completely dumb, can someone take a best estimated guess at what monthly payments would be when ALL is said and done? Thanks

misterep · February 2006

I have purchased and leased Jeeps from the 'Green Slip' (old term) program before. The transaction went as planned and most if not all the data was available. However, at the end of the day these people are still car dealers so get the data...with a couple lease options like different terms or buy downs and take it home and study it.
The nice folks on this board frequently post current residual values and money rates.

ahhdirts · February 2006

Thanks misterep

ahhdirts · February 2006

I have just one more question. In January, the employee lease deal for the WK was $179/month. Feb, its $199/month. The Commander was $239/month in Jan. Now in Feb, the Commander is $199/month.

Is there any perdictable rhyme or reason to these, and what do you think the price on both will be for March?

I would postulate that things might start to get a little hairy. On March 20th, the Iranian oil bourse opens for business and trading takes place in petroeuros. This could have a TREMENDOUSLY bad effect on the dollar. Interestingly enough, the FED announced that beginning on March 23rd, they'll no longer tell us what the M3 money aggregate is. What this means is that this is a textbook hyperinflationary scenario for the USA.

ljg1 · February 2006

Hello,

Can you tell me if this sounds good or what would be better. I have customer loyalty and with that they say the total rebates will be $4,500

This is in Los Angeles County
No money down
Total Rebates/incentives (returning lease customer) $4,500
X package
36 month lease
Monthly payment with 12k miles/yr $415.95
Monthly payments with 15k miles/yr $434.00
Residual is 50% on 12k miles
Residual is 48% on 15k miles
I have one payment left on my current lease and they will pay that.

Somwhere $16,130 can up and I think that is what I will pay (50% residual)? But I am really not sure.

They told me the invoice is $30,113 and the MSRP is $34,000 so this lease is based on the MSRP (correct?)

How can I negotiated down from the MSRP? Do you negotiate this or the payment? Some keywords to use would be helpful.

A pipe dream would be to get the 8 cyl with Nav and DVD for this price, they quoted $480 on that lease.

I am not aware of what the money factor is or really understand that so I am not sure.

Thank you in advance for your response.

sagra · February 2006

Just making sure we are getting a good deal. 2006 4.7 Limited sticker price $37,500, dealer made offer of $35,000 0% apr. We countered with $32,000 are we off the mark? Help

amg61 · March 2006

Car_man, do you know the current money factor, residual value numbers, and the total incentives for a Jeep Grand Cherokee 4x4 limited edition, 4.7 V8, for a 36 or 39 month lease, with either 12k or 15k miles?? thanks.

CarMan@Edmunds · March 2006

I sure do, amg61. If you were to lease a 2006 Jeep Grand Cherokee Limited 4WD through DaimlerChrysler Financial Services right now for 36 months with 15,000 miles per year, its buy rate lease money factor and residual value should be .00185 and 52%, respectively. The numbers for an otherwise identical 39 month lease are much worse at .00299 and 51%. If you were to lease with only 12,000 miles per year, this truck's residual values would be 2% higher. DaimlerChrysler is providing a total of $3,500 lease cash on this truck right now. Make sure to take it into account when negotiating the capitalized cost of the one that you want.

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mlima112 · March 2006

Car Man, I am looking to lease a '06 JGC 65th edition 4x2 3.7L. I qualify for the DC affiliate rewards program through my employer. I've negotiated back and forth with a few dealers via email.

The best offer I have received so far is for $309+tax for 36 months with 12k miles/yr with $500 out of pocket. Details for the lease are below.

MSRP: $29,180
MONEY FACTOR: .00149
RESIDUAL: 51%

How much lower can I take them? Any suggestions?

I appreciate your feedback.

butchoy · March 2006

Car Man, your help would be appreciated

2006 JGC Limited
MSRP $39,575
Selling Price $31,930
Zero Down
36 Month Lease
12,000 Miles

Dealer offering $485

Your thoughts?

Thanks!

butchoy · March 2006

Hi Car_man, according to the ALG (via Cars.com), the current residual value is 43% of the MSRP for the JGC Limited 36 month lease. Are you using a different basis for the residual calculation. This is affecting my projected lease cost. Thanks

butchoy · March 2006

My final deal:

2006 JGC Limited
MSRP $41,560
$4500 rebates + loyalty
Zero Down and first month paid
36 Month Lease
15,000 Miles

$473 with tax

Good Luck everyone!

kelseyr · March 2006

I have been calling around and going into delaerships looking for a good lease deal on an '06 JGC Laredo 4x4. I have an offer quoted of
MSRP: 30055.00
rebate: 3500.00
Cah down: 2000.00
27 mo/24,000 miles

241.80 + tax

Is this something I should consider... if there anyway to get my payments down to 200 + tax or am I dreaming.

kelseyr · March 2006

sorry about the typing errors.... was trying to get the numbers right.

soccermom21813 · March 2006

A dealership in our area is offering a lease one get one free offer. This will save us $90.00 per month. This has been an overwhelming success for them. He has no EC numbers left. Can anyone out there offer me their EC number?

Thank you so much!

soccermom21813 · March 2006

Can you obtain (2) EC numbers for me?

Our local dealership in Michigan is offering a lease one and lease one free promotion. We can lease two new vehicles for $288.00 per month. We would be ever so greatful to you.

"BUY AMERICAN"

cuppy1 · April 2006

I am about to take delivery of a 06 SRT8 which I will be leasing. Any word on residuals on these vehicles? Also what is a decent lease payment on a 36mo.lease for this vehicle. $40220.MSRP -$37475.negotiated selling price $2000.down payment

jimmyj3 · April 2006

I have been advised by my Jeep dealer that Chrysler Financial do not offer leases on new 2005 models. Is this correct?

Many thanks

ridgecom · April 2006

Hey Car Man do you have the most current money value, residual percents, and total incentives on a 2006 Jeep Grand Cherokee Limited 2wd, 4.7L on a 12,000 mile lease?
Thanks.

jf7227 · April 2006

What would an estimated monthly lease payment be on a JGC Limited (5.7L Hemi), fully loaded for 36 months, 15,000 mile a year, no money down. Any help would be greatly appreciated.

CarMan@Edmunds · April 2006

Hi mlima112. The lease program that you were quoted for this truck looks good to me. While you didn't mention it, the selling price is probably good too if you are getting it through DaimlerChrysler's supplier purchase program. I'd be happy to calculate a lease payment for you and give you additional feedback on this deal if you tell me what this truck's exact selling price is.

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CarMan@Edmunds · April 2006

Hello butchoy. A base 2006 Jeep Grand Cherokee Limited 4WD has a spread of a little over $3,100 between its full MSRP and dealer invoice prices. This truck has $3,500 lease cash available on it right now. This gives us a $6,600 spread to play with. You are being given a whopping $7,600 spread on the truck that you are considering. I would say that this is a very good price.

Let's double check the lease payment that you were quoted using Chrysler Financial's actual lease program. According to my calculations, if you were to lease a 2006 Jeep Grand Cherokee Limited 4WD with an MSRP of $39,575 and a selling price of $31,930 through Chrysler Financial right now for 36 months with 12,000 miles per year, your zero down, pre-tax monthly payment should be around $427. This is a little lower than the payment that you were quoted. Make sure that the dealer is not marking up your truck's money factor to make hidden back-end profit on your deal. This truck's current buy rate lease money factor for this term is .00269.

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CarMan@Edmunds · April 2006

Hey butchoy. ALG is an independent source that publishes what are considered to be very accurate residual values for vehicles. However, most banks do not use ALG's residual values, but instead publish their own which in some instances are quite a bit higher. This could be because they disagree with ALG's assessment of a particular vehicle's future value or more likely they are trying to hide some lease support by inflating its residual values above what it is likely to be worth down the road. Inflated residuals are good because it means that you as a consumer are paying for less depreciation than your vehicle is actually experiencing. Chrysler Financial's current 36 month, 12,000 miles per year residual value for a 2006 Jeep Grand Cherokee Limited 4WD is 55%.

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CarMan@Edmunds · April 2006

The dealer is correct, jimmyj3. The residual values for 2005 models have fallen so far at this point that most manufacturers' captive finance companies, like Chrysler Financial, are no longer leasing them. This late in the model year, most manufacturers replace their incentives on leftover models to straight dealer cash. That's what happened to the 2005 Jeep Grand Cherokee. DaimlerChrysler is currently providing $4,500 dealer cash on '05 Grand Cherokee Laredo and $5,500 on Grand Cherokee Limited models. If you want one, you would be best off financing it through an independent bank or paying cash.

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CarMan@Edmunds · April 2006

Greetings ridgecom. According to the latest information that I have seen, if you were to lease a 2006 Jeep Grand Cherokee Limited 2WD 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 .00228 and 52%, respectively.

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CarMan@Edmunds · April 2006

Hi Ken. Unfortunately, we do not allow community members to post personal information like their e-mail addresses in the forums. If you want someone to e-mail you, make your e-mail address in your user profile public. Thanks.

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CarMan@Edmunds · April 2006

Hi jf7227. 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 car'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 work up a sample lease payment on the Grand Cherokee that you are interested in for you if you let me know what these numbers are.

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cuppy1 · April 2006

You must have discarded the answer to my post #84 when you removed Ken's post. Please re-reply. Thanks

vettezx · April 2006

Sorry about that problem, I wanted to find out what the lease deal you got on the SRT-8, my current Jeep lease is up in about three weeks, and wanted to lease the SRT JGC. Please, if you will, let me know the deal you got, including the payment per month, the down payment, length of time, miles per year. Thanks for all your help. Ken

cuppy1 · April 2006

Will do. It was shipped on Mar 31st. so I should be hearing from the dealer soon and I will give you the numbers as soon as I have them.

vettezx · April 2006

Thanks alot. Have they given you any numbers as of yet? I went down to my dealership today and they wanted 4k over sticker, I laughed and said I would wait. Thanks for any info you have, and btw what part of the country is your dealership located in, maybe I will have to buy from them.

jf7227 · April 2006

Carman

The MSRP of the the vehicle is $42,500. The dealer said he would go down to invoice which is $38,313, minus $3,500 in rebates. The total would then be $34,813. The destination charge would be $695. I would like to lease this truck for 36 months, 15,000 miles a year. With minimum money down. I would greatly appreciate your opinion on what would be a fair monthly lease payment for this truck.

dogsambam · April 2006

I am looking to lease a 06 Grand Cherokee 5.7 Limited on the 27 month deals which Jeep seems to be running. I am in Illinois. The two dealers i have gone to, are all over the board in numbers. I want to lease the car with taxes rolled in and no money down. What are the money factors and residuals on a car with a sticker around $42000. 27 month lease with 12000 miles a year. Also, should the rebates be taken after the discount on the car? Thanks for any help.

cuppy1 · April 2006

The sticker was $40,220. They are selling(leasing)it to me for $37,475.,which I think is a darn good deal since most dealers are, as in your case, asking above sticker. I live in south central PA.

vettezx · April 2006

Well since I am in North NJ, after you deal is done, if you dont mind I will ask you for a contact over there, sounds like an unbelievable deal. Let me know when you get it. Thx Ken

2013 and earlier Jeep Grand Cherokee Lease Questions

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