When it comes to getting a new vehicle, most people finance it while some others pay in cash. However, many folks don’t even know that there is a third option. Leasing a new vehicle is perfect for anyone who likes to frequently upgrade their vehicle, and the current offers for a Jeep lease are very enticing. In this article, we will cover the best Jeep leasing options for a new model and what you can expect when you choose to lease a Jeep.
What Is a Lease?
A lease for a vehicle is similar to renting an apartment. Essentially, you are renting a brand new car for an extended period of time without having to pay massive monthly payments for a financing plan. It is important to note that you will not own a leased vehicle once your leasing period has expired.
How Does Leasing Work?
So you have found a new car that you absolutely love, but you don’t want to commit to such a large purchase. Your next best option is to lease it from the dealership.
How this works is you will make monthly payments to rent the car from the dealership. After the agreed-upon time frame has concluded, you will return the vehicle to the dealership. Some dealerships may allow you to buy out the vehicle at the end of your leasing terms, but that is something you should discuss with them before you agree to final arrangements.
Are Leases Better Than Financing?
This all depends on you. With financing, you are taking out a car loan and slowly paying it off. The result is that you will eventually own the vehicle. However, it usually takes a lot longer to pay off a vehicle through financing, and the monthly payments are typically much higher than with leasing.
The best part about leasing a vehicle is that you can return it at the end of your lease and lease another new vehicle. This will keep you behind the wheel of the latest model every few years. Leases generally last from two to four years, so you will get to upgrade to a newer model fairly quickly.
Jeep Lease Options
As one of the most iconic and recognizable auto brands in the world, Jeep has a selection of vehicles that a lot of people want to drive. You can always contact your local Jeep dealership to inquire about their current leasing specials. Known for being flexible and budget-friendly, you could be driving a Jeep SUV in no time!
While we can’t give you precisely what you will pay for your new Jeep lease, we can provide you with estimates based on what others have paid for similar models. This will help give you a better idea of what to expect when you get in touch with your local Jeep dealership. It will also help you to prepare financially for taking on a new vehicle lease.
Here’s what we know about new Jeep leases based on 36-month leasing terms:
- Jeep Renegade models with an MSRP of $24,740 can be leased for an average of $291 per month.*
- Jeep Cherokee models with an MSRP of $27,645 can be leased for an average of $359 per month.*
- Jeep Compass models with an MSRP of $29,255 can be leased for an average of $305 per month.*
- Jeep Wrangler models with an MSRP of $33,585 can be leased for an average of $333 per month.*
- Jeep Grand Cherokee models with an MSRP of $36,480 can be leased for an average of $387 per month.*
- Jeep Gladiator models with an MSRP of $40,290 can be leased for an average of $409 per month.*
Can a Jeep Lease Be Negotiated?
Yes! Call around to all of your local Jeep dealerships and ask about the initial payment, taxes, dealership fees, and specials. You may also request an itemized breakdown of the lease offer. Once you have collected all of the information, you can ask dealers to match the best price you find. If they refuse, at least you tried!
Is There a Mileage Limit?
Yes, leasing a vehicle does come with some restrictions. Many leases have mileage limits. This is because the dealership will put the vehicle up for sale once your lease is up, and you’ve returned it.
If you go over your mileage limit, you may be hit with fees. The amount will vary depending on the MSRP of the vehicle. For example, the more expensive vehicles have higher fees for going over the mileage quota. Generally, these fees range from $0.10 per extra mile to $1 per extra mile.
Can a Jeep Lease Be Transferred?
Maybe. Some dealerships may allow lease transfers, but others may not. This is a question that you should ask before you agree to the leasing offer. Most of the time, there are conditions for transferring a lease. Some lenders require the transfer to occur in the same state or within a certain time frame. Others may allow lease transfers due to unforeseen circumstances such as divorce or loss of a job. There is usually a transfer fee that can reach up to $600. Before you sign a Jeep lease, or any lease for that matter, you need to fully understand all of these details.
What Are Open-End and Closed-End Leases?
A closed-end lease is the one you want. It ensures that there will be no hidden costs at the end of your leasing term. Unless you went over the mileage limit or there is significant damage to the vehicle, you will simply return it to the dealership with no extra costs.
An open-end lease doesn’t include the future value of the vehicle. So, when you return it, you may get a refund. However, if the value has plummeted, you may have to pay more.
Do I Need Full Coverage Insurance?
Yes. Since the vehicle is not yours, full coverage insurance is required. You may need additional insurance as well.
There is a special kind of auto insurance that your lender may require you to get when you lease a Jeep. This is known as GAP coverage. GAP is an acronym for Guaranteed Auto Protection, and it will cover the difference of how much you owe on the lease and the value of the vehicle if you have an accident or the vehicle gets stolen.
Can I End the Lease Early?
If you want to terminate your lease early, you may have to pay a fee. When you agreed to the lease initially, you agreed to pay a set amount for a set period of time. Breaking that contract can be inconvenient for the lender, but they often have a way to do so that typically involves a fee on your part.
Should I Buy or Lease?
Ultimately, the decision is up to you. If you want to experience the thrill of having a Jeep for a while without committing to a purchase, a Jeep lease is a great option. It’s also a great idea for growing families since you can lease larger models as your family expands.
*These rates are based on 2020 models with a 36-month lease and a $1,000 down payment at the time of publication. Actual rates change regularly.