Three trim levels were initially offered; the top end Limited, a more rugged looking Renegade and the base Sport.

The 2005, 2006 Renegade and 2005 Rocky Mountain Edition Liberties received an exclusive flat hood and taller grille.

It offered the following standard equipment: a 2.4L "Power-Tech" Inline Four-Cylinder (I4) engine, a five-speed manual transmission, sixteen-inch (16") steel wheels, an AM/FM stereo with cassette player (later, a single-disc CD player), a six-speaker audio system, cloth seating surfaces, dual manually-adjustable front bucket seats, a split-folding rear bench seat, full instrumentation, manual windows and door locks (power windows and door locks became standard equipment starting in 2005), gray front and rear bumpers and body side cladding panels, and a rear-mounted spare tire and wheel.

Based on the base Sport' model, it added the following equipment: a 3.7L "Power-Tech" V6 engine, power windows and door locks with keyless entry, cloth-and-vinyl-trimmed seating surfaces, air conditioning, sixteen-inch (16") color-keyed aluminum-alloy wheels (in Cactus Green, Mineral Gray, or Light Khaki), gray front and rear decorative wheel flares, Anti-Lock Braking System (ABS), front-mounted fog lamps, and an AM/FM stereo with single-disc CD player.

It added the following equipment to the Renegade trim level: a 3.7L "Power-Tech" V6 engine, a four-speed automatic transmission, sixteen-inch (16") aluminum-alloy wheels (later seventeen-inch (17")), color-keyed front and rear bumpers, chrome body side cladding panels, an AM/FM stereo with single-disc CD player, security system, power-adjustable front driver's bucket seat, air conditioning, front-mounted fog lamps, an overhead Electronic Vehicle Information Center (EVIC), and premium cloth seating surfaces with low-back front bucket seats.

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.

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).

The division of power and open center differential allows the Selec-Trac transfer case to be operated at all times in an "All Wheel Drive" mode with no adverse effects.

Since it was introduced in April 2001 as a 2002 Model Year vehicle to the time it was discontinued in 2007, the Liberty KJ also found its way into rental car fleets.

Early-2002 through mid-2003 model year CRDs were equipped with a 2.5lt VM Motori Diesel producing 105 kW (143 PS; 141 hp) and 343 N⋅m (253 lb⋅ft).

In European markets, VAT registered buyers can claim back the tax paid as this qualifies as a Commercial Vehicle.