48% Price Increase Since 2018

[martoaj]

IMHO, they increased all prices across the board so they get the $7500 EV tax credit and not YOU…

When you lease, Jeep passes 100% of the $7500 tax credit back to you ... and they're not required to, many OEMs pocket it for themselves. The only benefit Jeep is getting from the tax credit is helping lower the end cost to consumers and moving more volume of cars. They aren't making anything off the tax credit directly.

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[martoaj]

Not watching the whole dumb video, but I leased a brand new JL Sport S in 2018, it was pretty loaded (dual top, tech pack, Alpine, towing, cold weather, etc) and had a window sticker of $45,035. I just built the closest equivalent I could on Jeep.com (no 3.6L/8AT combo I could find but whatever) and it was a sticker of $51,510. $51,510 - $45,035 = $6,475 / $45,035 = 14.4%. Not 48% or whatever. Clickbait.

Bingo.

Better yet, total inflation from 2018 to 2023 is nearly 20% ... so really, the similarly equipped Wrangler today is actually cheaper?! ?

 

[S2k Chris]

When you lease, Jeep passes 100% of the $7500 tax credit back to you ... and they're not required to, many OEMs pocket it for themselves. The only benefit Jeep is getting from the tax credit is helping lower the end cost to consumers and moving more volume of cars. They aren't making anything off the tax credit directly.

Plus I think Stellantis more than most needs help hitting CAFE numbers, which moving PHEVs helps achieve, so it’s in their best interest to push hybrids. Someone has to offset all those V8 Chargers and Challengers and Rams and 392 Wranglers.

 

[martoaj]

Plus I think Stellantis more than most needs help hitting CAFE numbers, which moving PHEVs helps achieve, so it’s in their best interest to push hybrids. Someone has to offset all those V8 Chargers and Challengers and Rams and 392 Wranglers.

Certainly. That's a big reason why 4xes have such huge incentives put on them. Jeep's 4xe sales were up 50% year over year, and this last quarter they were 36% of all Wranglers sold.

 

[rickinAZ]

Until this analysis is normalized for changes in standard equipment it's nearly meaningless.

 

[CarbonSteel]

Until this analysis is normalized for changes in standard equipment it's nearly meaningless.

Until this is an actual analysis...it's totally meaningless...and is little more than clickbait.

 

[The Fixer]

When you lease, Jeep passes 100% of the $7500 tax credit back to you ... and they're not required to, many OEMs pocket it for themselves. The only benefit Jeep is getting from the tax credit is helping lower the end cost to consumers and moving more volume of cars. They aren't making anything off the tax credit directly.

The lease "deals" are not "deals" at all, especially compared to what we used to get even just a few years ago. When we leased my wife's JLU Sport S in 2018, we paid $3k down and payments were $339/month for 48 months. I leased a base Sport the following year and paid $3k down and $325/month for 48 months. Around the same time, a guy I knew leased a 4-door Ram truck with the smaller engine and they had some crazy deal at the time, like $249/month with a low down payment.

The latest lease deal on a Willy's 4xe on Jeep's website shows $399/month for 36 months with $4219 down (overall, $689 less than our deal 5 years ago). HOWEVER, the disclaimer below it says the $7500 EV incentive is factored into your lease payment term. That means without the EV credit, your lease payment on a Willys 4xe would be $607.33/month. That's insanity.

Also, the ad that was floating on the side of the forum here was showing a 2-door Sport lease for $425/month with $4k down. That's ludicrous.

 

[martoaj]

The lease "deals" are not "deals" at all, especially compared to what we used to get even just a few years ago. When we leased my wife's JLU Sport S in 2018, we paid $3k down and payments were $339/month for 48 months. I leased a base Sport the following year and paid $3k down and $325/month for 48 months. Around the same time, a guy I knew leased a 4-door Ram truck with the smaller engine and they had some crazy deal at the time, like $249/month with a low down payment.

The latest lease deal on a Willy's 4xe on Jeep's website shows $399/month for 36 months with $4219 down (overall, $689 less than our deal 5 years ago). HOWEVER, the disclaimer below it says the $7500 EV incentive is factored into your lease payment term. That means without the EV credit, your lease payment on a Willys 4xe would be $607.33/month. That's insanity.

Also, the ad that was floating on the side of the forum here was showing a 2-door Sport lease for $425/month with $4k down. That's ludicrous.

I leased my $63,000 sticker Sahara 4xe for $0 down and $535 per month (36 months) with NY taxes and a wheel+tire insurance package included. The deals are very much there, and they're not that hard to find ... you just need a moderately motivated dealership/salesperson. I didn't even have to have this one shipped or do anything special. This was a no-haggle deal through a dealer in MD.

Anyone who is leasing a car nowadays taking the "deal" listed on the manufacturer's website is going to get taken for a ride, and shouldn't be surprised by a large payment. Either do the small amount of work to get the real deal, or don't complain.

Referencing my point above, inflation from 2018 to 2023 is nearly 20%. The fact that you can get a 36-month lease of a highly desirable $60k+ car for around $600/mo is quite incredible. If you think that's expensive you'd keel over dead knowing what people are paying to lease a run-of-the-mill entry-level luxury SUV like a BMW X3 or Mercedes GLC.

 

[73TAWM]

Why on earth are people still leasing? At the end of the lease you're left with nothing...

 

[martoaj]

Why on earth are people still leasing? At the end of the lease you're left with nothing...

Because Jeep is literally giving you $7500 to lease, and giving you $0 to buy. And given its motivation to move 4xes the money factor (aka interest rate) on 4xe leases is nearly 0%. Would your thought be different if Jeep was handing you $208/mo off of your payments for the first 3 years?

You always have the option to buy the car at the end of the lease, at a pre-negotiated price, and now you own the car if you wish. And because Jeep gave you a $7500 down payment ... you immediately have positive equity. Whereas with a purchase, you're nowhere near that point after only 3 years.

The math's pretty simple here. Blows my mind that more people don't run the numbers. Some cars lease better, some finance better, and the situation is different for every person. But it's silly thinking to have a blanket statement that leasing is a bad idea.

It's an incredible rabbit hole, but if you're ready to read and learn, go take a gander at https://forum.leasehackr.com/

 

[NAZJeeper]

Good for them. Every business should endeavor to maximize their profits. I can't imagine anyone thinking that they shouldn't......?

 

[S2k Chris]

Why on earth are people still leasing? At the end of the lease you're left with nothing...

Not true at all. You’re left with something g very valuable, an option.
You can either buy out a leased vehicle for a predetermined price, which if you leased in 2020/2021 before values exploded you can get a smoking deal on a known quantity vehicle. OR, you have the option to turn it in and walk away at no penalty, which if your vehicle was troublesome or you had an accident or the vehicle held its value much worse than expected you don’t have to eat that loss.

I’ve leased twice, the first time was my JL in 2018 when it was brand new and I was new to Jeeps; it was possible that a brand new model from Jeep was going to have problems and I didn’t want it long term as a result, or it was possible that I’d decide I wasn’t a Jeep person, in which case it was a cheap ($400/mo) roll of the dice.

The second was my current 4xe, which was again a very new technology and I was wary of owning such a complicated Jeep product. I’ll probably end up buying it out because I love it; I will have spent ($420 x 36 = $15,120) plus the buyout is ~$38k = $53k total, which on a Jeep that stickered at $60k (minus $7500 incentive) isn’t a bad deal. Had my 4xe been a dumpster fire I’d be glad to have the chance to hand it back in and walk away.

The other reason to lease currently is if you’re getting an EV or hybrid and wouldn’t qualify for the tax credit due to income limits, you can lease and get the full tax credit as a cap cost reduction and then buy out your lease.

 

[Deleted member 59498]

No one is giving anyone 7500 dollars. Especially Jeep.

 

[S2k Chris]

No one is giving anyone 7500 dollars.

If you make over $300k as a family, your choice is purchase at full price, or lease at $7500 off. It is effectively them giving you $7500.

 

[Deleted member 59498]

If you make over $300k as a family, your choice is purchase at full price, or lease at $7500 off. It is effectively them giving you $7500.

Jeep is not giving you 7500 dollars. Read what I wrote. I know there is a tax incentive rebate it is not coming out of Jeep bank account out of the kindness of their hearts are to sell cars.

Plus the increase in price on the 4xe more than kills any rebate. Not worth over 70k dollars in any world I live in.

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