Analysis: Why The Wrangler JL Is $1 Cheaper To Lease Than The JK

By

Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

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, Senior Pricing Analyst - February 7, 2018

The all-new Wrangler is finally starting to arrive at dealers after months of anticipation. Interestingly, leasing bulletins sent to dealers indicate the redesigned SUV can actually be cheaper to lease than the outgoing generation.

Here's a look at why you may want to choose the so-called Wrangler JL over the old Wrangler JK, at least if you're going to lease.

New vs. Old

This month, the old JK Wrangler Unlimited Sport is listed at $284 for 36 months with $2,499 due at signing. It comes with an allowance of 12,000 miles per year and is based on an MSRP of $30,390.

Based on our analysis, its effective cost comes out to $353/month.

However, at the same time, the new JL Wrangler Unlimited Sport is listed at $283 for 36 months with $2,499 at signing. That's based on an MSRP of $33,690, with the exact same mileage limit.

The effective cost of the all-new Wrangler? $352/month. That's a $1/month advantage for a completely updated vehicle with an MSRP that's $3,300 higher.

So why is this the case?

Numbers Game

Unlike most other Jeeps, both versions of the Wrangler aren't eligible for any sort of lease cash incentives. Both feature the same money factor of 0.00193, which equates to an interest rate of 4.6% APR.

Based on our analysis, the key difference has to do with the underlying residual values.

The lease for the JK Sport is based on a residual of 71%, an impressive amount for any vehicle. For some perspective, a 2018 Camry SE has a residual value of 55%.

The reason the JL Sport equates to a superior lease is that it's based on a residual of 75%, the highest out of any other JL style.

Not Every JL Is A Great Deal

Unfortunately, not every JL Wrangler equates to a stellar value. Residual values vary by style and heavily favor the 4-door Unlimited models. Here's an example.

At the moment, the two-door JL Sport (MSRP $30,190) is listed at $322 for 36 months with $2,499 at signing, with an effective cost of $391/month. It's based on a residual of 66%.

That means the 2-door is $39/month more to lease than the 4-door even though the 4-door costs an extra $3,500.

So should you lease a JL Wrangler?

Based on what we're seeing, choosing the previous generation may not offer much of an advantage if you're comparing advertised offers. As a result, choosing the latest and greatest could be a smarter choice under some circumstances.

, Senior Pricing Analyst

Alex Bernstein is the Senior Pricing Analyst for CarsDirect.com. Each month he studies immense volumes of pricing and incentives data in search of trends that are useful to car shoppers. In the process, he often breaks industry news stories -- his analyses and insights have been featured on websites such as Automotive News, The Detroit News, Autoblog, The Truth About Cars and The Car Connection.

Follow On: Google+ | Website