70 percent of Liberty buyers are new to the Jeep marque.
It is assembled at the Toledo North Assembly factory in Toledo, Ohio.
Three trim levels were offered for the Jeep Liberty: the top end Limited, a more rugged looking Renegade, or the base Sport. All are available with either 2WD or 4WD. In 2007, the Renegade trim level was replaced with the Latitude that appears to focus on a more urban appearance.
The Liberty was the first Jeep to use two new PowerTech engines, the 150 hp 2.4 L I4, dropped in 2006, and the 210 hp 3.7 L V6. A VM Motori 2.8 L I4 common rail turbodiesel became available in CRD branded 2005–2006 Sport and Limited models. The diesel utilized a variable geometry turbocharger and generated 160horsepower (120kW) and 295 pound-feet of torque. The overbuilt nature of the diesel powerplant added nearly 200 pounds to the CRD's curb weight versus the gasoline model. DaimlerChrysler introduced the CRD to gauge the marketability of diesel engines in North America; diesels are already common in Europe. Jeep exceeded their expectations by selling 10,000 Liberty CRD models in the first calendar year of sales.
Only available in 2005 and 2006 for the Sport and Limited models, the 2.8L VM Motori CRD has since been discontinued due to stricter 2007 United States diesel emission standards. Maine, Vermont, Massachusetts, New York, and California had already banned sale of the vehicle due to their rigid state emissions regulations. A 3.0L CRD engine, based on a Mercedes-Benz BlueTec design, is still in production for the Jeep Grand Cherokee.
The Liberty was not the first Jeep vehicle to use an independent front suspension, as the Jeep Wagoneer first used it in the 1960s. The Jeep Wagoneer with the independent front suspension was never put into production, due to how fast the bushings would wear out.
The Liberty is available with either a part time Command-Trac or full time Selec-Trac transfer case. The Command-Trac transfer case has four positions: 2-HI, 4-HI, Neutral, and 4-LO. The lever is placed in 2WD HI for regular driving, this allows the two rear tires to receive power. The second position, 4WD HI, is used for driving on slippery or loose pavement. This position locks both the front and rear drive shafts together splitting engine power equally between all four tires. The third position, Neutral, disengages both drive shafts from the transfer case allowing the car to roll freely; this is used for towing behind another vehicle, for example. The last position, 4WD LO is used for situations in which there is very little traction. This position, like 4WD HI locks both the front and rear drive shafts together, and by using a lower gear ratio, allows for 2.72 times more torque (however, the speed is limited to around 25 MPH max). It should be noted that using 4WD HI or LO on dry pavement is hazardous to vehicle components, through drive line binding and wheel-hop.