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  #1  
Old 08-04-2014, 02:22 PM
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Question Leasing a WK2 - something I don't understand...

Hi,

I'm comparing the numbers on a lease between a 2014 Limited and Overland (2015 is not available on the website yet - but I guess the ratios will be identical on the MY15s).

I put together a Limited with an MSRP of $44,285 (V6, 4x2, Technology-Group, UConnect 8.4AN and Luxury-Group). A 24-month lease at 12K miles/year with $5K down is listed at $467/month.

So far, so good.

Now, the Overland has an MSRP of $46,185 (V6, 4x2, Technology-Group). Price-Difference between the two: $1,900.

The identical 24-month lease with the same downpayment all of a sudden jumps $100/month to $567/month.

So why is the Overland so much more expensive? It has far less options and the lease-surcharge is even higher than the $1,900 difference in MSRP (24 x $100 = $2,400 more in payments over the lease). I also deleted the Technology-Package on the Overland. Even then, the Overland is $534/month ALTHOUGH its MSRP is now actually LOWER than the one on the Limited.

Does anybody know what's going on?

Thanks for your input!

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  #2  
Old 08-04-2014, 02:39 PM
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Re: Leasing a WK2 - something I don't understand...

Quote:
Originally Posted by GCOverland View Post
Hi,

I'm comparing the numbers on a lease between a 2014 Limited and Overland (2015 is not available on the website yet - but I guess the ratios will be identical on the MY15s).

I put together a Limited with an MSRP of $44,285 (V6, 4x2, Technology-Group, UConnect 8.4AN and Luxury-Group). A 24-month lease at 12K miles/year with $5K down is listed at $467/month.

So far, so good.

Now, the Overland has an MSRP of $46,185 (V6, 4x2, Technology-Group). Price-Difference between the two: $1,900.

The identical 24-month lease with the same downpayment all of a sudden jumps $100/month to $567/month.

So why is the Overland so much more expensive? It has far less options and the lease-surcharge is even higher than the $1,900 difference in MSRP (24 x $100 = $2,400 more in payments over the lease). I also deleted the Technology-Package on the Overland. Even then, the Overland is $534/month ALTHOUGH its MSRP is now actually LOWER than the one on the Limited.

Does anybody know what's going on?

Thanks for your input!
A few things you might find interesting. 1.) Never put any money down on a lease. If you should happen to total your vehicle during the lease your down payment will be a total loss to you. Do a "Sign and Drive" if you can get it. 2). The sweet spot in leasing is at 39 months, so your best leasing deals are there. 3). The difference between the two vehicles you are comparing has to do with residual, the price the leasing company thinks they can sell the vehicle for after you return it when the lease runs out. Obviously, even though the two vehicles are starting out close in price the leasing company thinks the Overland will depreciate less and hold its value better.

If you haven't done so already, check out Chrysler Capital. I found them great to work with on my 2014 Cherokee lease.
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Old 08-04-2014, 02:50 PM
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Re: Leasing a WK2 - something I don't understand...

Are you comparing online or in a dealership?

Things you don't know about are:
Customer lease cash incentives
Risidual values
Lease factor rate (dealers can mark them up to their max allowed rate)
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Old 08-04-2014, 02:57 PM
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Re: Leasing a WK2 - something I don't understand...

Thanks for your input, macfan!

Quote:
Originally Posted by macfan View Post
A few things you might find interesting. 1.) Never put any money down on a lease. If you should happen to total your vehicle during the lease your down payment will be a total loss to you. Do a "Sign and Drive" if you can get it.
In reality, I will be putting a maximum of $1K down - as I usually do (I'm putting down the $1K I'll use as deposit when placing the order). The other $4K are from the difference between MSRP and the price below invoice I'll be paying. The payment-simulator on jeep.com is using MSRP so in order to get a realistic quote, I used "$5K down" in to arrive at the actual net-price.

Quote:
Originally Posted by macfan View Post
2). The sweet spot in leasing is at 39 months, so your best leasing deals are there.
That's true - but since I'm using identical terms on both calculations, that shouldn't matter.

Quote:
Originally Posted by macfan View Post
3). The difference between the two vehicles you are comparing has to do with residual, the price the leasing company thinks they can sell the vehicle for after you return it when the lease runs out. Obviously, even though the two vehicles are starting out close in price the leasing company thinks the Overland will depreciate less and hold its value better.
Unfortunately - and that's what I don't get - the opposite applies.

The simulator thinks the Limited, even at a at a lower MSRP, will have a higher residual and therefore, significantly lower payments - and THAT'S what I don't understand. Usually, even at identical MSRP, the vehicle with the higher base- and lower option-price (when the same model) has the lower lease-price (example: A loaded up BMW 535i will be more expansive to lease than a base 550i at the same MSRP). However, for some reason, this does not seem to apply here.

Quote:
Originally Posted by macfan View Post
If you haven't done so already, check out Chrysler Capital. I found them great to work with on my 2014 Cherokee lease.
The numbers I obtained are from jeep.com - that's why I'm a bit confused..
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Old 08-04-2014, 03:00 PM
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Re: Leasing a WK2 - something I don't understand...

Quote:
Originally Posted by hi2nr View Post
Are you comparing online or in a dealership?

Things you don't know about are:
Customer lease cash incentives
Risidual values
Lease factor rate (dealers can mark them up to their max allowed rate)
I'm comparing directly on jeep.com.

Are there incentives available on the Limited that aren't on the Overland? That would be interesting..
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Old 08-04-2014, 03:39 PM
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Re: Leasing a WK2 - something I don't understand...

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Originally Posted by GCOverland View Post
I'm comparing directly on jeep.com.

Are there incentives available on the Limited that aren't on the Overland? That would be interesting..
Not sure for this month. I don't work for Chrysler anymore so they took me out of their dealerconnect access lol

But to answer your question: most manufacturers will release incentives for their volume trim levels or most popular. In this case they produce more limited models than the summit or overland therefore lease incentives are more likely on limited vs other trims
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Old 08-04-2014, 04:03 PM
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Re: Leasing a WK2 - something I don't understand...

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Originally Posted by hi2nr View Post
But to answer your question: most manufacturers will release incentives for their volume trim levels or most popular. In this case they produce more limited models than the summit or overland therefore lease incentives are more likely on limited vs other trims
Thanks!

It seems that they must have "unofficially" included that in their calculations because I don't think they are advertising any lease-incentives on the Limited that aren't available on the Overland right now.
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Old 08-04-2014, 05:02 PM
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Re: Leasing a WK2 - something I don't understand...

I'm on my 3rd GC Lease. The money factor is probably a large reason for the difference. The money factor is like an interest rate and it varies from model to model. I remember when I was going to lease a limited back in 2011 I was talked out of it by a friend of mine at the dealership and I loaded up a Laredo instead. It was like $150 less a month and had a similar sticker.

BTW those prices with $5,000 down are way too high. I don't know where there from, but I'm leasing a 2014 Limited. Sticker was $43,800 and the dealer installed tow hooks for me that isn't reflected in that and I'm paying about what you quoted for the limited with nothing down and I mean nothing, no tax, no cap, no bs. I agree your better off putting nothing down. If you have $5,000 put it in the bank and use it every month to make your payments. BTW every $1,000 you put down should usually lower your monthly payment around $30 give or take.
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Old 08-04-2014, 05:41 PM
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Re: Leasing a WK2 - something I don't understand...

The real question is, why do you have a Summit as your avatar when you're going between a Limited and an Overland (which is also a part of your name)?

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Old 08-04-2014, 06:02 PM
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Re: Leasing a WK2 - something I don't understand...

The residuals and/or rates are worse. You really can't compare leases based on the MSRP of the vehicle. For example, BMW has cheap leases where you could probably get a vehicle with an MSRP of 10k more for the same price or cheaper.


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Old 08-04-2014, 06:16 PM
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Re: Leasing a WK2 - something I don't understand...

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Originally Posted by s4morris View Post
The residuals and/or rates are worse. You really can't compare leases based on the MSRP of the vehicle. For example, BMW has cheap leases where you could probably get a vehicle with an MSRP of 10k more for the same price or cheaper.
That's true. I'm quite familiar with leasing (my current 2013 MKZ is one as well). I was just surprised to see such a huge difference WITHIN the same vehicle (WK2).

In this case, there simply must be a difference in hidden incentives - because I highly doubt the Limited would have a higher residual than an equally priced Overland.
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Old 08-04-2014, 06:24 PM
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Re: Leasing a WK2 - something I don't understand...

Quote:
Originally Posted by pinetar View Post
The real question is, why do you have a Summit as your avatar when you're going between a Limited and an Overland (which is also a part of your name)?



I was just playing around with the configurations and noticed that a well equipped Limited gets almost as expensive as a basic Overland which virtually has all the Limited-options standard. Based on my experience with previous leases, I THOUGHT I knew that vehicles with many features usually get expensive in a lease and that base models are cheaper - that's why I assumed a base Overland would keep its value better than an equally priced Limited with thousands in options. But that was probably only half of the picture!

I'm still aiming for the Summit - but when I see something that initially doesn't make sense to me, I simply have to ask..
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