In the process of returning my leased 2019 Cherokee as a lemon. 
Before I get myself into something else, I’m just curious if I got a good deal back in May when I got it.
What’s the MSRP on your Cherokee?
+1. And who paid the $1000 in cash at signing - you or the dealer?
TBH, it really doesn’t matter if you got a good deal back in May, as RV/MF/incentives have likely changed since then. You can’t base a current deal off of one that far back.
I paid the $1000.
I know the deals are most likely different. I’m just trying to gauge my previous deal, as I (stupidly) didn’t do much homework ahead of time.
At least he can learn how to interpret and double check the lease contract before he signs this go-round.
Check out the gross cap cost and cap cost reduction. Maybe I’ve had too much coffee this afternoon but neither one makes any sense to me based on the other things in the contract. Section 11 is at best not filled out correctly and at worst there are shenanigans in the calculations.
OP, what state are you in? What is MSRP?
edit: Rule #1: NEVER PUT MONEY DOWN. You just discovered why 
That $1k is gone forever.
Agree. That said, didn’t want him to just toss this lease sheet in front of someone and say match it either.
It would have been around 40,025?
I’m in Mass.
And yes, lesson learned on the $1000, I have also learned about MSDs, which I’ve never heard of before, so two things in one day! lol
Don’t forget that you have excise tax in MA too. Some companies roll it into the lease price, so always check.
I’m originally from the Berkshires. I ask because the rebates and cash down are taxable up front at your state tax rate (6.25%). So the $2500 rebate ‘costs’ $156.25 and the $1000 down ‘costs’ $62.50; these taxes get added to the gross gap cost unless you pay them up front.
Here’s a test: Tell me how they got a gross capitalized cost of $39,457.76 and a cap cost reduction of $3,037.78. I don’t understand these values. I haven’t leased a car in MA so I’m not sure how they handle the excise tax, but I’d assume they’d throw it in the sales/use tax (however $23.51 seems way too low to have the excise included).
FYI, MSD’s are not available on all brands/financial institutions.
The excise tax has been paid directly from Ally, and according to them I can pay it whenever I’d like before lease return.
I haven’t paid yet, as I’ve had so many problems with this stupid car.
I’m curious to see how this is going to shake out though when I get Chrysler to buy the thing back.
This is where I’m getting confused also, the numbers don’t really add up. I can’t figure out if I just got lucky or ripped off.
I reside in Michigan and got a 2019 Jeep Cherokee Limited last November. I know the numbers are different and our tax is lower here (6%), but as a reference here was my deal:
MSRP: $37,8xx
DAS: $3,000
Monthly: $250 (including tax)
36 months/10k per year.
When dealers pull shady sh*t in the customer’s favor, the numbers add up but are in odd places. These numbers just don’t make sense and seem to have come from nowhere. So I’m leaning the latter.
Gross cap cost should be agreed upon value (selling price) + all taxes on cap reduction (rebates/cash) + state fees + acq fee + prior credit (trade-in) + OTHER. The OTHER is where the dealer adds in BS.
Section 11 itemizes the gross cap cost. $37,608.76 + 595 + $170 = $38,373.76. Okay, they forgot to add in 6.25% sales tax on $3500 of rebates and cash…but that’s only $218.75. Still almost a grand away from what your gross cap cost is showing as.
Always make sure Section 11 itemization matches Section 7-a gross cap cost.
edit: cap cost reduction makes sense and is correct, didn’t see that the $1000 went towards first month payment and tax. Sorry too much coffee today.
That’s why I thought maybe they were somehow burying the excise tax in both places. Next time, don’t be afraid to make the F&I guy go through these numbers line by line sloooooowly and hand calculate them all in front of you until you understand them 100%.
edit: out of curiosity, did you payment shop? i.e. did you tell them your budget was $400/mo?
They had started somewhere crazy like $450.
Said no, started to walk out the door and they chased me down at $399, which I was okay with so there we have it.
I did do a trade with them, they bought my mazda 3 for what I owed, also from Ally.
I thought it was weird that it’s nowhere on the paperwork, but I chalked it up to something to do with the same lender.
Yeah you got hosed, and it’s very strange that they made the Mazda3 just disappear. Good thing you bought an FCA product - high probability of lemon law buy back . Just learn more about leasing then post the details here next time BEFORE you sign. Never walk into a dealer before you have a deal worked out…
How’s the buy back coming? Is it actually approved by FCA?
I would need to see the complete itemization of the gross cap (line 11). There is $1084 that I can’t accurately account for… also, your lease rate is 1.59% which may have been marked-up.
Damnit. lol.
I actually like the jeep, but the main problem with it is actually the dealers. There’s water trapped in the tail lights, which when the lights are on, heats up the water and causes them to fill with condensation. The dealers/chrysler refuse to admit that this is anything other than normal.
Between me harassing them over this and the other issues it’s had, I’m over the number of repair attempts/days required in Mass.
It’s not yet approved though, based on the timeline they have until this coming Tuesday for the Chrysler rep to fix it.
So, dropping it off at the dealer tomorrow, and they’re making me rent a car (because of course they are).