Hey guys, I’m interested in leasing (also open to buying) the 2023 Grand Cherokee 4xe (because of the Bonus Depreciation and/ or Section 179 benefits). Basic model with no additions. Visited the dealership and they offered me the following lease deal:
Cash down - $3,000 (10k miles)
39 months, monthly payment - $619
OR
Cash down - $4,000 (10k miles)
39 months, monthly payment - $592
OR
Cash down - $5,000 (10k miles)
39 months, monthly payment - $565
Market Value Selling Price - $ 61,660
Discount - $4,995
Rebate - $9,500
Adjusted Price - $47,165
Other (dealership specific so can’t mention) - $2,995
Total Purchase - $50,160
Taxable Fees (Estimated) - $456.50
Doc Fee - $998
Tax - $694.22
Non Tax Fees - $450
Balance - $52,758.72
Residual - $30,830 (seems really high imo. Basically the car loses 50% value… that doesn’t seem good. Am I incorrect?)
First time leasing so I put all the info. Few questions I have:
Is this car a good choice? It’s just for 2 adults. I liked the inside of it compared to the Grand Cherokee 4x4
Good option for a cheap car for Bonus Depreciation and/or Section 179 car list? I’m not buying a car just for tax deduction, I need it since my current car is giving up on me. So thought the Grand Cherokee would be a good option since it has the tax credit and can save me from the Bonus Depreciation/ Section 179 as well
I’m not a car guy at all so want the best deal where I have to pay the least. I like the Tesla Model 3 lease deal since it’s not a lot of money. If this car can come close or as much as the Tesla Model 3 that’d be great
Is this a reliable car? Does it hold its value after 39 month lease?
What would be a good lease for this car?
Also I’d want 15k miles per year. How to get that at a lower price as well?
I can’t answer all of your questions, but here’s some advice to help make this a better lease for you.
Don’t put all that money down, just do first months payment. This is true for most leases.
Either use Rate Findr here or use Edmunds to find the money factor and residual value for your specific trim that you’re looking for. Then you can determine if the dealership is marking up the money factor.
Negotiate the selling price down. You do not need to be paying MSRP on this, see if you can get a 10% discount from the dealership. Also, make inquiries at many dealerships, not just one. Gives you bargaining power.
For the GC 4xe, I’ve actually found the 24 month lease to work out the best, although that is for my zip code and for 10k miles per year. Compare different lease terms using the calculator on this site.
Go to the Jeep website and fish around for a while, they’re giving out $1000 of coupons from the website. I don’t remember exactly how I got it but I was just browsing through some of the GC 4xe pages.
At the end of the day remember this is a lease, not a purchase. So if you don’t intend to flip the vehicle, don’t worry too much about it holding it’s value as long as you can lease it under terms that work within your budget. It’s always nice if you have equity left in the vehicle at the end of the lease so you can trade/sell it, but if there’s not you simply turn it in. Nobody can predict if it will have equity or not.
With what discount? Even at 12%, I cant make the math work on an overland under about $650. The overland programs are much worse than the base 4xe ones.
I am currently leasing a 22 GC 4xe Base and my overall impression of the GC 4xe, having owned both a gasoline GC and a full EV vehicle, is that it is just okay. Performance-wise, the 4xe is awkward, which I contribute to the harsh transition from EV mode to gas-only. Additionally, I live in Colorado and with the frigid temperatures this past winter, I spent most of my commutes in e-Saver mode, since the battery had to make efficiency decisions between interior climate and power (the 4xe is so darn heavy and takes a lot to move it!) Finally, I would strongly recommend a level-2 charger or easy access to one! In order for me to take full advantage of the EV benefit, I have to charge my GC daily. (I suppose you could coast and stomp break in full regen in e-Saver if all else fails )
Ultimately, I did a lot of research prior to making the move on the 4xe, a lot of which came from this site, but until you actually start to live with the vehicle, perspective is purely yours alone. I think Chrysler was and is gunning for the moon with the GC 4xe and may have even overshot it, trying to join the EV space race, and in my opinion, it shows both in price and in quality. There’s a reason why dealers are still sitting on 22’s.
I am not an accountant so you should ask yours to confirm but I don’t believe Section 179 or Bonus Depreciation is a factor unless you purchase the vehicle (not lease). If you are purchasing, and eligible for the EV tax credit, the base Grand Cherokee 4XE would be a decent option. Remember it’s tied to the amount of driving you do for work and must be 50% or more.
If you lease you can still allocate the same percentage of work usage against your lease payment. I.E. you drive 90% work, lease payment is $500/month and tax rate 30%, (500 X .9 X.32) your actual payment would be about $365.
Ally traditionally has a higher RV than most captives and it is typically offset by a higher MF.
I’m guessing you’ve run the numbers for each trim but would you give up Overland and get a Limited for a higher RV? It may get you closer to your target. Good luck and obv let us know how it works out.
Don’t really care which trim, they’re all fantastic trims in my opinion. But this dealer only has the IDL bonus cash on Overland and higher trims. The RV on the Limited is only 1% higher than the others for a 24 month so not too much different.
Here’s the offer from the dealer thus far using Ally. Gonna work on the discount with them, target it is 11% off MSRP. Also need to see if I can use the Jeep $1k off coupon from the website, I’m guessing not since it’s through Ally. The coupon doesn’t state it has to go through CCAP but we’ll see!
