2021 Jeep Grand Cherokee L

Ask the Hackrs
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2021 Jeep Grand Cherokee L Altitude 4x4

Talking with a dealer and just trying to understand why my calculations vs there calculations are about $190 more a month.

MSRP $43,890
Selling Price $42,890
Residual Value 65%
12k / 3yr
MF .002160

They are coming up with $583/month vs me coming up with just under $400/month.

There response is “yea tax is $4,000 alone which is $80-$100 a month and Jeeps site shows you the cheapest Jeep as a reference”
Any help is appreciated, just trying to understand the system =)

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2

Can you post your calculator?

3

And your $10,000 trade-in background…

4

$10k trade allowance with a $10400 trade in should make this essentially $400 in negative trade equity for a net DAS of $3600.

The calculator, based on the values shown, essentially looks like this:

5

Whomever told you this is an idiot and doesn’t understand how taxes are handled on a lease in CA.

The total amount of taxes paid over the life of the lease here is about $1900.

6

Isn’t the net DAS more like $3600? If it was positive equity, then it would be a net of $4400.

7

OP is missing that the 5.18% interest rate equals ~$150 a month in rent charge plus CA sales tax. That’s the ouch in this deal.

The trade is important to see what is being swapped out vs. market value

8

You’re correct… I’ve just gotten so used to positive equity in these weird times, I went the wrong way - edited my calculator above

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The calculator above is within about $10 per month. They’re showing a $600 security deposit on their sheet, which is probably doing something causing the rest of the discrepancy.

10

I just now caught that, not sure how I missed it. Wasn’t aware there was an additional rent charge on top of the lease.

I honestly may not do the trade in. its a 2013 explorer XLT 4WD but I’ll probably sell privately. It’s not worth more than $10.5k

11

All leases have a rent charge.

13

Thanks for all the help everyone. Sorry for missing/misunderstanding the lease charge.
Makes seeing every commercial out there for leasing a vehicle a bit more interesting SMH.

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Advertised lease specials include the rent charge. They don’t include taxes, fees, dealer add ons or mark ups, etc

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Couple takeaways:

  1. Advertisements are usual useless due to all the costs in the fine print that they’ve excluded to get to their advertised price.

  2. When you pick a vehicle as a candidate to do a deep dive on and spend all that time negotiating, you have to be very picky.

Most cars do not lease well. They do not have the programs (RV, MF and incentives) to be good candidates for lease-hacking, regardless of what dealer discount you can negotiate. This is truer now than it has ever been. Which means you cannot start your search with a particular car or cars in mind, and then find a way to make them lease well.

It will be like pushing a boulder uphill while pulling teeth, and you’ll still probably have a bad deal in the end. You need to start your search by filtering only the vehicles that are leasing well right now and offer good value per dollar.

Check out the “Share a Deal” and “Marketplace” sections of LH forums to decide what’s leasing well and pick a vehicle that is already proven to offer good value.

Remember, there are no magic wands that can save a deal from poor programs (RV, MF, and incentives) and/or poor discounts.

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I went to a jeep dealer here in Pompano Beach. I got a deal on a Grand Cherokee L limited 52k truck. If I used US bank which at the moment are running the best leases on these. 10k year. 640 tax in. 42 months. Still the leases to me for these trucks are horrendous.

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All a matter of perspective. When I have looked at the prices being offered on these by some of the brokers here, these look to be one of the better value propositions in the 3 row suv market currently.

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