Budget XJ Cherokee Build: Trail-Ready for Under $2,000

The Jeep Cherokee XJ has always been known as one of the most affordable ways to get into off-roading. With its solid axles, lightweight unibody design, and massive aftermarket support, you don’t need to spend a fortune to build a capable trail rig.

Here’s how to turn a stock XJ into a solid off-road machine for less than $2,000.

1. Budget Lift Kit – $300–$500

A lift is the first step toward fitting bigger tires and gaining clearance. For a budget build, skip the fancy long-arm kits. Instead, go for a simple 2–3 inch lift kit with new coils and leaf springs or even a budget boost (spacers up front, shackles in the rear).

This keeps costs low and still clears 31-inch tires, which is the sweet spot for budget-friendly trail rigs.

2. Used 31-inch All-Terrain or Mud-Terrain Tires – $400–$600

The best mod you can make to any off-road vehicle is better tires. Scour Facebook Marketplace, Craigslist, or local off-road forums for a set of used 31x10.50R15 tires on wheels. They’re common, affordable, and fit the XJ perfectly with a mild lift.

All-terrain tires are a good compromise for daily driving, while mud-terrains shine on the trail.

3. DIY Armor and Rock Sliders – $150–$300

The rocker panels on an XJ are a major weak spot. One hard hit on the trail and the Jeep can be damaged beyond easy repair.

If you’re handy with a welder, you can build your own rock sliders from square tubing for under $200. Even if you buy an entry-level set, you’ll still come in under $300. Skid plates can be added later, but sliders are the most important protection for a budget build.

4. Junkyard Axle Upgrade (Optional but Smart) – $200–$400

Many XJs came with the weak Dana 35 rear axle. If yours has one, keep an eye out for a Chrysler 8.25 (29-spline) axle from a ’97+ Cherokee in a junkyard. It’s a cheap and strong upgrade that bolts right in.

This isn’t mandatory for mild wheeling, but if you’re running 31s and plan to hit the rocks, it’s money well spent.

5. Recovery Points & Basic Gear – $150–$250

Even a budget XJ needs a way to get unstuck. If your Jeep doesn’t already have factory tow hooks, grab a front tow hook kit or aftermarket bumper with recovery points. Add a rear hitch receiver shackle mount for the back.

Then throw in the basics: a recovery strap, a couple shackles, and a hi-lift jack. You can find all of this used and keep it under $250.

6. Cheap Locker or Welded Rear – $250–$350

Lockers make a huge difference, but full selectable units are pricey. For a budget build, consider a lunchbox locker (like a Spartan or Lock-Right) for the rear axle. They’re simple, reliable, and much cheaper than air or electric lockers.

If you’re really on a shoestring budget and the Jeep is trail-only, some people weld the spider gears in the Dana 35/Chrysler 8.25 to create a “Lincoln Locker.” Not the best for street use, but nearly free if you can weld.

7. Miscellaneous DIY Mods – Free to $100

A few cheap or free mods can improve your trail performance:

• Trim the fenders to clear bigger tires with less lift.
• Relocate the air intake snorkel tube higher in the engine bay for water crossings.
• Disconnect the front sway bar for more articulation (free if you just unbolt it, $100 for quick disconnects).
• Cheap LED lights for night runs.

Budget Breakdown

• Lift kit: $300–$500
• Tires/wheels: $400–$600
• Rock sliders: $150–$300
• Axle upgrade: $200–$400 (optional)
• Recovery gear: $150–$250
• Lunchbox locker: $250–$350
• DIY mods: Free–$100

Total: $1,450–$1,900 (or as low as ~$1,200 without axle/locker upgrades)

Final Thoughts

You don’t need to dump $10,000 into an XJ to have fun off-road. With a mild lift, 31s, some basic armor, and recovery gear, you’ll have a Jeep that can handle trails, mud, and rocks without breaking the bank.

The Cherokee XJ was built to be simple and capable — and with a budget build like this, you’ll be able to keep up with rigs that cost five times as much.