The New Car With The Biggest Price Discount In America

By Douglas A. McIntyre Published Nov 7, 10:52AM EST

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The New Car With The Biggest Price Discount In America — © Courtesy of Jeep

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.

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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.

Click here to read This Is The Fastest-Selling Car In America Right Now

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.