Jeep Garage  - Jeep Forum banner

Lease offers on '17 GC

13K views 94 replies 25 participants last post by  AZGhostrider 
#1 ·
For those that have chosen to lease their MY17 GC, What are the terms that you were able to negotiate?

1) Length of lease
2) amount
3) miles allowed
4) trim level of Jeep
4) additional packages
5) down payment

etc etc etc
 
#6 ·
Edit to my numbers....it's 10k miles/year, not 12k, sorry. Still though, a good deal. This is my 3rd Jeep at this dealership (a good one I might add, including a great service dept), and I always return my leased Jeeps 8k below (on average) what is allowable under the lease (equity). So they definitely take that into account when returning to them to lease again. Also, I always go towards the end of the month which seems to be advantageous to the buyer, as dealerships are looking to meet/go beyond their sales quota for the month.
 
#8 ·
The December numbers for a Limited 4x4 in NC; 36 months, 15k miles FCA is offering:

53% residual
.0007 money factor.

These are about the numbers I've seen around this time of year every year since I've been paying attention. As with all leases, negotiate like you're paying cash and make sure you don't get distracted by low monthly payments.

Contrast the FCA numbers with Ally's numbers. While Ally has a $5k rebate for leases going and the payment may be cheaper, it's a far worse deal. Why? Because the residual is higher meaning more of your payment is going to interest. Ally's interest rate is 5x higher than FCAs.

What does that mean in the end for you? Whether you decide to sell at the end or buy it out, you're going to be out a couple thousand $. That interest rate is eating so much of your equity and you're already not getting much equity in a lease. But if you did decide to sell because the residual is lower than fair market value or you have gone over your mileage and don't want to pay overages, you could sell for $28k and come out even (not much of a stretch if your Jeep is in good shape at lease end) or sell for $28k and have to chip in another $3k to walk away.

Or, if you're like me and like the Jeep enough to want to keep it after the lease, the buy out is $3k cheaper from FCA than Ally even if you were paying pretty close to the same amount monthly.

You might ask, why did I lease in the first place if I was pretty sure I'd keep the truck? The money factor translates into 1.2% interest. That's a dirt cheap loan and far better than I would have gotten on a new car loan at the time (there were no 0% offers at the time I was looking; 2% was the best I could find).

So, I get 3 years at 1.2%, get to make sure there are no gremlins I'm getting in the truck and getting a free out if I want at the end of the lease. Or I could keep it if it's as good as I hoped. Win/win.
 
#9 · (Edited)
For those that have chosen to lease their MY17 GC, What are the terms that you were able to negotiate?

1) Length of lease
2) amount
3) miles allowed
4) trim level of Jeep
4) additional packages
5) down payment

etc etc etc
My 2017 SRT is being leased in Canada so it's not going to be a direct comparison:

1) 48 months @ 0% interest
2) $843/month
3) 18,000 km/yr (11,184 miles/yr)
4) SRT
5) Upgraded audio package, high performance brakes, trailer tow IV, carbon black wheels.
6) First month payment + security deposit (approx. $1600); you get security deposit back @ the end of the lease.

MSRP for my vehicle, as optioned, was something like $79,850 (don't have my paperwork with me). I got employee discount and holiday bonus cash ($500?). Along with tax savings from my trade-in, the Jeep's out-the-door price is $72,000.

I'll pay $40,464 over my 4 year lease, buy-out is $32,000. I don't plan on keeping it, as I never keep ANY of my cars for very long. I always want to drive something new so leasing seemed to be a good fit (and I couldn't say no to 0% interest).

Just for fun, if anyone is curious; $72,000 Canadian dollars is approx. $53,700 USD.
 
#11 ·
What I also like about Chrysler Capital is that it's easy to get out of the lease once you have equity (some banks always require the payment of the remaining payments plus the contractual residual - like Ford Financial does).

In addition, I can pay my monthly lease with my credit card which gives me another 1.5% off.:D
 
#13 ·
What I also like about Chrysler Capital is that it's easy to get out of the lease once you have equity (some banks always require the payment of the remaining payments plus the contractual residual - like Ford Financial does).



In addition, I can pay my monthly lease with my credit card which gives me another 1.5% off.:D


You pay the lease with a credit card? Do they charge you a fee?
 
#12 ·
Really thinking of leasing a '18 as I know what's the new platform comes out in 2019 I will be jealous AF. By the time my lease is up on the 18 the new platform will be going on it's 3rd generation.

Going to look at some F-Paces this weekend though, really liking what I am seeing.
 
#16 ·
Yes Chrysler capital was good with that.

Paid my whole finance contract of my 2015 with my Amex.


Went with them again to pay off the Hellcat although I only financed 12k after trade in of the WK2 just for the points.


You allow me to do that, I will abuse the system to get my points damnit! :lol:
 
#24 ·
A lease is actually remarkably easy to understand if rthey dealer gives you the numbers you need to figure out if you're getting a good deal or getting screwed. Knowing the money factor and residual are key. Here's a quick explainer:

Sticker price
Selling price/cap cost
Money factor
Residual
Lease term. We'll use 36 months here.

To roughly get how much you should be paying, you need all those numbers.

So - calculate the residual value by multiplying the sticker price by the residual. In this case, for simplicity, let's use 55% and a sticker price of 50k.

So the residual value is 27.5k

Now we need to figure out the selling price and cap cost. Negotiate the lease like you would a cash deal. This is VERY important. So, say you're a good negotiator and you get the selling price to be $42k. To get cap cost, add any fees like documentation, tags, payoff for previous loan. Let's say you've got $1k total in those fees. So cap cost is $43k

Money factor is essentially your interest rate. In fact, you can use the money factor to decide if leasing for a few years even if you plan on buying the car is a good idea (that's my case). Right now, in NC, Chrysler Capital is offering .00007 as the money factor. To figure out what that interest rate is, multiply the MF by 2400. That MF is 0.17% interest. That's right. Nearly zero.

With a lease, you pay the difference between the cap cost and the residual value over the x months of your lease term. In our example, your pay a total of 15.5k at .17% interest divided by 36.

That means your lease payment should be roughly $450/month.

Now, why would the residual and MF be important for you to know? Because if you go with a different bank you might have a higher residual value and higher MF.

You would get nearly the same monthly payment if your residual were at 64% and the MF at .002. That might not matter to you. But if you need to buy out the car or would like to, you're going to get hosed. Or say you want to trade it in - your equity will be far lower.

Dealers can negotiate on selling price, obviously. But they also will often pad the MF. That's why they are reluctant to show you the numbers and it's hard to get a straight answer from them about these things.

Dealers know that if you lease, you might want to lease again. You might want to get out of your lease early in which case the residual value is super important.

Don't get screwed.
 
#28 · (Edited)
I leased my 2017 Jeep Grand Cherokee Limited on December 16, 2016.

Billet Silver, Black and Light Frost Beige Leather, Hemi V8, Luxury Package, Technology Package, Tow Package, Safety Package, Navigation, 4x4, Power Skyscape Roof, extended warranty to 39mos/50K miles. As loaded as a Limited comes (I custom ordered it from the factory, took four weeks to deliver). This is the 7th vehicle I have leased. You can find all my Jeep photos in the Jeep Garage.

MSRP: $52,220

Dealer Discount: $4,000

Military Discount: $500

FCA Cash: $750

Cap Reduction: $2,500 (from 2010 GMC Acadia trade)

All fees, tax, title, doc, license rolled into lease ($1,700 which includes $500 Acquisition)

39 Months

15,000 miles/year

Residual: 54%

Money Factor: .0005 (1.2 percent)

Security Deposit waived

Monthly Payment: $594
 

Attachments

#29 ·
I leased my 2017 Jeep Grand Cherokee Limited on December 16, 2016.

Billet Silver, Black and Light Frost Beige Leather, Hemi V8, Luxury Package, Technology Package, Tow Package, Safety Package, Navigation, 4x4, Power Skyscape Roof, extended warranty to 39mos/50K miles. As loaded as a Limited comes (I custom ordered it from the factory, took four weeks to deliver). This is the 7th vehicle I have leased. You can find all my Jeep photos in the Jeep Garage.

MSRP: $52,220

Dealer Discount: $4,000

Military Discount: $500

FCA Cash: $1,000

Cap Reduction: $2,500 (from 2010 GMC Acadia trade)

All fees, tax, tile, doc, lisence rolled into lease

39 Months

15,000 miles/year

Residual: 52%

Money Factor: .0005

Monthly Payment: $594
If this is a Chrysler Captial lease, your money factor is way too high. It was .00006 on the limiteds last month.
 
#32 ·
Yes, always negotiate the price first. If you have a trade, negotiate that at the end of the transaction as a separate item and never tell the dealer what the payoff is. Only negotiate one vehicle at a time to avoid confusion on the actual deal you are getting.

Once you decide what vehicle you want such as a Jeep Grand Cherokee Limited, go online to the Jeep website and build it the way you want it. At the end you will see a summary and financing options to purchase or lease are generally spelled out showing any rebates and the best available rate for good credit. Now you know where you stand. The second step is to go to a website like Truecar or other similar and build the vehicle again just like you did for Jeep. You will see what the invoice price is, the MSRP, and the range of what others have paid. You want to put yourself in the lowest 25% range of buyers or below to make sure you are getting a fair deal. Websites like Truecar will actually show you the dealer discounts in your area as well as any rebates that may be available. You can either print out a "Truecar Certificate" or similar from a similar website and take it to a Truecar approved dealer where they must honor that price. The downside is you will be getting calls and emails from the other dealers in the area and this can be annoying. What I like to do is print out a copy of the Truecar pricing page and then take it to my favorite trusted dealer and say take it or leave it. They'll take it and you can skip all the dealer pestering you for a month.

You can find the residual value and the money factor at an online leasing website that tracks these. However, the money factor on the Jeep website is the best rate you can get and the residual (based upon months term and annual mileage) cannot be tinkered with since it is fixed, so for that just ask the dealer (I like to work with the fleet or the internet department and avoid the salesman middleman). After that is just becomes math as far as fees and how much money you want to put down. Make sure you get a lease worksheet and disclosure that you can review prior to signing. If you see anything that looks suspicious - ask before you sign.

Typical fees include an Acquisition fee (Usually around $500), a doc fee (around $300 to $600), plus the usual Title, Registration, and License fees.

Remember on a lease you only pay tax on your monthly payment. So if your base monthly payment is $500 and the sales tax rate is 8%, your total monthly payment is $540. If you purchased the vehicle instead of leasing, you have to pay the sales tax up front, which on a $50,000 vehicle is $4,000. I hope this helps. You can see my example a few posts back as a guide. The good news is that the January 2017 money factor is down to .00006 now and if this were in effect when I leased my Jeep I would have saved another $30 a month. As they say timing is everything! Get the best deal you can at the time. Best of Luck.
 
#73 ·
Yes, always negotiate the price first. If you have a trade, negotiate that at the end of the transaction as a separate item and never tell the dealer what the payoff is. Only negotiate one vehicle at a time to avoid confusion on the actual deal you are getting.
The only problem with going this route when you intend to lease is the fact that sometimes there are factory incentives that only apply to purchases. You may negotiate a purchase price only to find out that your $1000 rebate from Chrysler goes away when it turns into a lease deal.
 
#35 ·
I'm not putting any cash down.......no trade........

What are the requirements of a lease as far as maintenance and then what is the process like when you go to return or buy.....I hear horror stories of being nickel and dimed on a return.

If you decide to keep, is their any hassle or is it all done online/mail/email? If you keep, is it still inspected?

Reasons I'm considering the lease: Allows me to get a brand new car at a price I can afford right now with the options I want(trail package+4x4+towing). I would think there is peace of mind also since if you get a bad one with a lot of issues, they are either resolved via the bumper to bumper warranty or you don't deal with it since its returned prior to the end of the 36k warranty.
 
#37 ·
You should not lease a vehicle unless you are the type that takes real good care of your vehicle and keeps it cleaned and well maintained according to factory recommendations for oil changes, etc. In seven leased vehicles, I have yet to be nickled and dimed but when I turn my car back it in I usually get the comment that it looks and smells brand new. You know yourself better than anyone so take that into consideration when buying versus leasing. Buying a vehicle at the end of lease is fairly simple and mostly online - you don't need the inspection if you are buying the vehicle at lease end, only if you turn it in. I recommend using the FCA finance since they are less likely to nickel and dime than an independent lending institution (if you turn it back in).
 
#38 ·
A few other things - When you return the vehicle, the tires must all match and have decent tread life remaining, the windshield cannot have any cracks (most chips are OK) and generally anything smaller than dollar bill (scratches, small dents) are considered normal wear and tear. Same for the interior although large fabric tears/stains can be a problem.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top