Sales in the car industry have exploded. Among the reasons is pent-up demand due to the COVID-19 pandemic. Over the course of this period, many dealers were closed, sometimes for months at a time. However, this demand has been stifled. America faces one of the biggest new car shortages in recent history. The chips to run the electronics and navigation systems are in short supply. This trouble may last into 2022. Several car companies have had to shutter assembly lines. Earnings at publicly held manufacturers have been damaged. And, the overall result of the shortage is that car prices have spiked. Another byproduct is that Americans keep cars longer than at any time in recorded history–about 12 years.
Raging demand paired with limited inventory has driven the number of days a dealer holds a new car to historic lows. Some models are not even available. Dealers have started to charge prices higher than the MSRP. While customers object, they can either pay the higher price or leave dealers empty-handed.
One of the longest-lived practices in the car industry is to offer discounts to bring people into dealers. These usually include low-interest car loans, price reductions, and “cash back” incentives. Manufacturers have avoided these whenever possible because they erode profitability. Strong demand has allowed car companies to eliminate many of these.
Car research website Edmunds reviewed the sharpest discounts on cars, crossovers, pick-ups, and SUVs for November. In the report issued “our experts were able to comb through the latest dealership transaction data to find out which models will save you the most money off MSRP.”
The vehicle with the shaped discount was the Jeep Renegade which carries a price reduction of 10%, or $3,080 from an MSRP of $29,612.
Jeep has eight models of which the Renegade is the least expensive. It is small and has a modest 2.4 liter 4 cylinder engine. It gets 21 MPG in the city, and 29 MPG on the highway.
In general, the Renegade receives poor grades from auto research firms and media. Car and Driver gives it a grade of 6.5 out of 10.