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In my region, Jeep is offering a 24 month lease for a 2021 GC Laredo E 4X2 at $189 per month. Based on an MSRP of $36,710 with $2,995 down.

Will dealers honor this pricing?

There do not seem to be many, if any, Laredo E 4X2 with the 2BE package at local dealerships. How much would that $189 per month increase as the MSRP increases? Or is dealer/model specific?
 

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You need the actual terms of the lease to understand what the payment represents....that includes the residual (value of the vehicle at end of lease) and money factor. (effective interest rate) BTW, keep in mind that that 42K down payment is just pre-paying part of your monthly lease cost. It's not saving you any money at all and is at-rise should you total the vehicle early on. One other thing...the "offer" you cite, if you read the fine print, is just a representative calculation and not for a specific vehicle. The actual lease would be calculated on the JGC you pick as your target. The Vehicle price you negotiate is part of that...dealers are independent businesses and can sell at, below or above MSRP. Why is that important? Even though "you" are leasing, someone is buying the vehicle to lease back to you. The price it's sold at is material to your cost.
 

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Discussion Starter · #4 ·
You need the actual terms of the lease to understand what the payment represents....that includes the residual (value of the vehicle at end of lease) and money factor. (effective interest rate) BTW, keep in mind that that 42K down payment is just pre-paying part of your monthly lease cost. It's not saving you any money at all and is at-rise should you total the vehicle early on. One other thing...the "offer" you cite, if you read the fine print, is just a representative calculation and not for a specific vehicle. The actual lease would be calculated on the JGC you pick as your target. The Vehicle price you negotiate is part of that...dealers are independent businesses and can sell at, below or above MSRP. Why is that important? Even though "you" are leasing, someone is buying the vehicle to lease back to you. The price it's sold at is material to your cost.
Thanks for the explainer.

Isn't the find print effectively saying that if a dealership has a Laredo 4X2 with the 2BE package with an MSRP of $36,710 I theoretically could lease it for $189 per month with $2,999 through Chrysler Capital?


I realize that if the aforementioned specifically equipped GC isn't available, then lease pricing would be calculated on whatever model selected subject to residual value, money factor, etc.
 

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Theoretically, but that assumes that the price for the vehicle is static. It's not, especially in the current moment. MSRP is just a number. The S stands for "suggested". In more "normal" times, the price for the vehicle is far lower than that. In the current environment, the price could be MSRP or could be higher. The number you need is the actual selling price of the vehicle you want that you negotiate and agree to...and that's before you even have the lease conversation. If you say "lease" and the conversation turns to monthly payments, you're often going to pay more for the vehicle.
 

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Isn't the find print effectively saying that if a dealership has a Laredo 4X2 with the 2BE package with an MSRP of $36,710 I theoretically could lease it for $189 per month with $2,999 through Chrysler Capital?
Yes and no. As Jim mentions, the fine print is saying that in an imaginary world, where a vehicle sells for MSRP with absolutely no further markups or dealer add-on equipment or fees, your lease payment would be $189/month with $2,999 down through Chrysler Capital.

But your actual lease payment will always be calculated on the actual agreed-upon value of the vehicle (whatever you and the dealer negotiate in the sales department). If the dealer decides that $36,710 vehicle and its dealer-added wheels locks and dealer-added window etching and dealer-added window tinting is worth no less than $48,920, then your lease calculations are based on $48,920.

Since no one's mentioned it yet, I'll also throw in this tip: Chrysler's promoted leases are always low-mileage leases. (That's why the prices are so enticingly low.) If there's any chance you're going to put more than 20,000 miles on this vehicle, you absolutely do not want a low-mileage lease; the overage fees will kill you in short order.
 

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Theoretically, but that assumes that the price for the vehicle is static. It's not, especially in the current moment. MSRP is just a number. The S stands for "suggested". In more "normal" times, the price for the vehicle is far lower than that. In the current environment, the price could be MSRP or could be higher. The number you need is the actual selling price of the vehicle you want that you negotiate and agree to...and that's before you even have the lease conversation. If you say "lease" and the conversation turns to monthly payments, you're often going to pay more for the vehicle.
100% correct. No matter if you are leasing or financing, you need to negotiate price upfront. When I bought my 2018 JGC Overland (loaded) at the end of 2017, the MSRP was $52k, I got it for $45k as they needed sales for info the year. Now that I see what prices are now days, I will certainly be holding onto mine for the foreseeable future.

Best of Luck with your deal.
 

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phx' brings up a good point...you need to also know the allowable mileage per year of the lease you are considering. Many of these have max allowable (before per mile surcharges) as low as 10K miles per year with 12k miles typical. Expected mileage affects the residual value of the vehicle (value at the end of the lease) which affects your payment up front. At lease end, if you return the vehicle, any mileage over the allowable will be charged to you on a per-mile bases. Let's say you're over by "only" 5000 miles from what is allowable and the per mile penalty is $.15. The math says you will owe them $750 for the excess mileage. In cases like that the low monthly payment isn't quite as low as you intended. And again, if you make any kind of down payment on a lease, that's just prepaying some of the capital cost, so the lower monthly payment plus that down payment vs just a monthly payment based on the total capital cost is going to be a numbers that are very close. (minor variance due to money factor calculations)
 

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As Jim alluded to earlier it makes absolutely no sense to put money down on a lease. Most leases I see advertised include a down payment strictly to make the monthly cost more attractive. Yet a down payment on a lease saves you absolutely nothing on your overall cost and you'd be much better served keeping it invested or at least in your pocket for other needs. It's like getting zero interest financing and paying it off early, why on earth would you?
 
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