2005 Jeep Liberty

The Grassy Knoll Institute in search of a new vehicle.

I began with the Sunday paper looking through the car dealerships. I wanted a new Jeep Liberty. I pinpointed one perspective dealer that ran an add for a 2005 Liberty Sport 4X4 with V6 engine, air, auto, power windows, doors, seats, CD, alloy wheels, cruise, and tilt all for a mere $19,995.00. The add also states Zero down payment and under invoice. This seemed to be the place to begin. I prepared by getting the value of my trade-in car, a 2002 Chrysler Sebring LX, which is loaded with every option including premium sound and alloy wheels. The Kelly Blur Book report states that the retail value in my area is just over $13,000.00 and the dealer trade-in value is just over $9000.00.

Arriving at Preston Chrysler Jeep on Route 422 in Warren, I was greeted immediately by a salesman named Shane. After several seconds of chit chat, we got down to business and I took a Liberty for a test drive. Satisfied with the vehicle, the infamous “Lets talk deal” was initiated. The service man took my keys to inspect my vehicle while we went to Shane’s cubicle to talk deals. He had me sign a standard agreement that I was intent on buying a vehicle if the deal was right. Shane had trouble using the phone and left the cubicle several times to confer with his manager.

Minutes later, he came out of the managers office with the apparent deal in his hand. He tells me that my payment will only be $489.00 per month for 48 months with $1850.00 as down payment. And oh yea, this is a lease price, not a purchase price. I ask what happened. Shane states that although my car is in good condition, it is only worth 7 grand. I point out that the car has low mileage and is in excellent condition but he says that the car did not retain it’s value and it’s only worth 7 thousand dollars. Shane said he would have to take a hit on the car and eat it because he couldn’t sell it for much more than the 7 grand. That’s when I ask him about the Kelly blue book value. He calls his manager on the phone and asks him with me hearing and the manager said that is where he got the figures.

I did some quick math to determine what he was selling me. $489.00 per month times 48 months equaled $23,472.00 plus the $1850.00 as down payment for a grand total of $25322.00, or roughly $5500.00 over the asking price of the Liberty. And it’s a lease where after four years I would have to give the car back after paying over 25 grand.

At that point, I knew the deal was over but decided to see how far they would go. I then produced my copy of the Kelly Blue book report of the retail value and dealer trade-in value that stated 13 grand retail and 9 grand for trade-in. I asked Shane to have the manager come over. Surprisingly, he did and tried to double talk me saying that we are in Chevy country with all the special “Pep” cars and that the value of trade-ins are very low. I reminded him that we were in a Chrysler dealership and that Chevy’s, Fords, or Toyota’s were not the topic of discussion. My low ball quote for a trade in was. I then asked about his math and how he came about the payment of $489.00 when the add clearly stated zero percent down and zero percent financing for 60 months plus the bonus cash, rebates, and Preston discounts.

I said even without my car as trade-in, the $19995.00 plus sales tax which is approximately $1200.00 for a total cost of $21,195.00 total. Divide that number by 60 for the months of financing and the number is just over $350.00 per month. And that is purchasing, not leasing. Where did the extra $139.00 per month come from, and when did this deal change to a lease deal?

Needless to say, I didn’t buy the Jeep Liberty Monday night. However, I did learn several things in my quest for a new car. One, Chrysler Sebrings do not maintain value. The sticker was over 22 grand for my car and after only two and a half years, it depreciated almost by 70% of it’s value. The Preston salesman said that was typical of the Chrysler cars. Hmmnnnn. Two, it is a huge waste of time to speak with a car salesman for any question or request, they have to go into the managers office and receive approval. Maybe to cut overhead costs, the manager could just come over and tell the salesman and customer right away what the deal is without all the smoke and mirrors.

 

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