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Discussion Starter #1
Anyone have a list for the residuals and money factors for this month?

I'm crunching numbers for a 14 Jeep Grand Cherokee Limited.

Thanks.
 

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This is for Limited

36 mo - 57%
39 mo - 55%

At 10k miles, subtract 2% for 12k miles and 3% for 15k miles.

Money factor will depend on the bank. US Bank is much better than Ally.
 

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Discussion Starter #4
This is for Limited

36 mo - 57%
39 mo - 55%

At 10k miles, subtract 2% for 12k miles and 3% for 15k miles.

Money factor will depend on the bank. US Bank is much better than Ally.
Thanks for the residuals. Do you have the money factors for both banks?
 

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I'm getting quoted a residual of 50.7% from a dealership in Long Island on an Overland, 12K miles/year. This seems pretty low. Is this negotiable with the dealer? And has anyone else seen residuals on overlands? Thanks for the help.
 

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The residuals I've seen so far (here and other threads/people) are ridiculously low on the Overland but the Limited model looks really good when it comes to residual.

I just don't understand the logic behind it...
 

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The residuals I've seen so far (here and other threads/people) are ridiculously low on the Overland but the Limited model looks really good when it comes to residual.

I just don't understand the logic behind it...
Not good for me! Thanks though.
 

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The residuals I've seen so far (here and other threads/people) are ridiculously low on the Overland but the Limited model looks really good when it comes to residual.

I just don't understand the logic behind it...
More expensive models typically have worse residuals, as they depreciate more.

As to why it's such a large change now, my guess is that a) the Limited got moved down a trim level and b) they expect Overland buyers to potentially be Grand Wagoneer buyers, and are compensating for future competition, from the GW and other vehicles coming out in the near future?
 

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Its just that the more expensive models depreciate more, hence the lower residuals.
 

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I still don't understand why more expensive models would depreciate more. Isn't it pretty linear?

Why does a $44k Limited have a 56% residual and a $48k Overland have a 51% residual? I guarantee you the Overland will be worth more than the Limited in three years (assuming they have the same amount of miles, etc.).

Can someone explain this?
 

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The Overland will be worth more, but not the same percentage more. Lets say you buy a $5,000 option package on a $30,000 car. Essentially 17% of the cost of the car.

3 years down the line, is that car worth 17% more than a car with the same option package? No. Might be worth $1,500 more. The package depreciated at a much higher rate than the base car.

If you look at used car values and play around with KBB, etc you see that.

Thats why when leasing the smart Jeep to lease is probably an absolutely loaded Limited vs a base Overland. Cost and equipment may be very close, but because the Limited is a Limited the residual is going to be better and the lease will be cheaper. Whereas if you are buying the Overland will probably actually be worth more on resale because "its an Overland".
 

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At the end of 36 months an Overland and a Limited will be a very very similar price point. Go to Craigslist and price out 2-4 year old cars of different trims, you will see the price is pretty much the same, or at least close. 2011 Limiteds versus Overlands in Detroit seem to hover around the exact same price, for example.
 

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The Overland will be worth more, but not the same percentage more. Lets say you buy a $5,000 option package on a $30,000 car. Essentially 17% of the cost of the car.

3 years down the line, is that car worth 17% more than a car with the same option package? No. Might be worth $1,500 more. The package depreciated at a much higher rate than the base car.

If you look at used car values and play around with KBB, etc you see that.

Thats why when leasing the smart Jeep to lease is probably an absolutely loaded Limited vs a base Overland. Cost and equipment may be very close, but because the Limited is a Limited the residual is going to be better and the lease will be cheaper. Whereas if you are buying the Overland will probably actually be worth more on resale because "its an Overland".
He nailed it on all points.

Loaded out Limiteds will sell for less later on down the road because they're "just a Limited". It may have all the packages, but to mr. car salesman and mr. uninformed consumer, it's just a Limited, with some packages they're going to give you very little for.

The key is that the residuals for leases don't include the options into it. So your lease is based off the relatively inexpensive and high residual Limited, and doesn't factor in the higher depreciating options you've picked. Those options are standard on Overland, so they're included.

I bought the Overland instead of a loaded Limited because I could justify the extra expense for the leather dash and door tops, the nicer leather, and all the other interior upgrades. It's up to you to decide if it is worth it for you.
 

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Been deciding whether to purchase a fully loaded 2014 Limited (Lux Grp, Nav Radio, 20" wheels, Trailer Tow) or an Overland. Overland is $1,800 more. Had the dealer look up the current value of a 2011 Limited and Overland. 2011 Overland was $2,300 higher than the limited. So concluded that if you trade every 3 years, you get the extra cost of the Overland back on the trade-in. Also, I like QL and front grill look of the Overland. Al
 

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Absolutely, if you're buying get the Overland, if you are leasing get the loaded Limited.
 
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