[semper731]

Hi Guys,

I just wanted to get some feedback on what to expect, and perhaps some advice as I'm a first time leaser with my 18 Cherokee Latitude Plus. Has the goodies I wanted like Blind spot detection, heated seats/wheel, 8" screen, cold weather package, 3.2 engine. First some information for you. I got this lease on 12/20/17, and currently am under my miles just at 25k allowed 30k for a 3 years. So far the following issues have surfaced, and been fixed under warranty of course: Rear Diff replacement, Ball joint, and steering knuckle replaced from LF, Replaced Shifter bezel, and wire harness. Anything else so minor not work getting into as the Jeep is well kept, and in great shape.

So some questions, as I'm not sure if this is common or not. Looking at my car lease contract it says that I am making at total of 38 payments. Why would I be making 38 payments when 36 months is 3 years, not 38. I'm not sure if this is normal, and there is a reason on this, but I even made my first payment the day I got my vehicle on 12/20/17.

The Next question I have is beyond the 38 payments my contract shows with the dealership, the bank shows I have to make a total of 40 payments. Now I'm just mind blown, and dont know what to think. I mean they give you 30k miles for 3 years, and both the dealership and bank are asking for payments beyond that... If these extra payments are legit, I almost feel they should be giving some additional miles then.

Anyhow, I'm hoping maybe some others that have experience in this area can give me some advice. My goal is to trade in for a 2021 Trailhawk Cherokee. Looking at two that are still coming in. One is a 80th anniversary edition in Spitfire Orange at another dealer, and the other is a standard trailhawk in velvet Red at the original dealership I did business with.

I'm hoping to try to keep equity in my current lease so I can almost use it as a down payment when trading in, and keeping my payments close to where I was.

Thanks for any help

-Garrett M.

 

[Dave Collins]

I would go back and re-read the lease agreement to see if there was a down payment that was required but they didn't take. That may be why they are adding extra payments on to make up for a down payment. Not sure if you started out with a trade in or paid money down before starting the lease but its something to definitely check into.
As far as equity in your current lease, unless you buy it outright or finance it when the lease is up you have zero equity.

 

[semper731]

I did trade in two vehicles as my down payment. My 06 Grand Cherokee, and a 02 Firebird. Figured that was the down payment. I will have to call and ask

 

[Dave Collins]

I was just exploring your options. Did you refinance the lease at anytime? Or if it started out at say 0% then moved up to 3.99% (just throwing a guess out here) it could have changed your payment length. But then again, you can always possibly lease a new one and if you like it then buy at the end of the lease. Though then it would not be a "new" vehicle and wouldn't qualify for the sometimes special 0% financing they offer from time to time. But on the other hand they do offer return lease's around $1000 discount on newer vehicles that qualify.
Once again I'm just throwing out ideas!

 

[semper731]

Thanks for the feedback, and thoughts Dave. I ended up finally getting a hold of my dealer that I worked with back in 17. I don't know how I didnt realize this during the day I signed it, but apparently they did a 39 month lease as it was cheaper than a 36 month lease. So that would make sense with the payments that remain now. That gives me more time to figure out my finances, and what direction I want to go come the end of it. Apparently I do get extra monthly miles for those extra 3 months as well even though its only listed on the agreement as 10k per year. Just doesn't go into any detail.