Join Date: Feb 2017
Location: Southeast Michigan
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$4-5,000 off a new 2016 Renegade, even before you start negotiating
Considering a left-over, brand new 2016 Renegade? This is the time to buy. A long-winded analysis follows but I think Renegade shoppers/buyers will be very interested.
As of yesterday (17 March 2016) FCA added another $1,000 in incentives to clear out new dealer inventory of 2016 Jeep Renegades. That's on top of $3,000 in existing incentives plus $1,000 more if you have a competitive lease. These numbers all apply to dealers in the FCA Great Lakes Business Center, a geographic location encompassing most of the Great Lakes states (Michigan, Ohio, Indiana, Illinois...). Incentives in other parts of the US are similar, but not necessarily identical. And, these incentives apply before the dealer sharpens his pencil to create the best deal possible.
All dealers will be different with respect to their willingness to further incentivize the car. It will depend on their business model, level of competition from other Jeep dealers in the area and, most importantly, how many 2016 Renegades they have in stock and how close they are to reaching their monthly sales targets at the end of the month. You've gotta believe that a dealer with several 2016 Renegades in stock will want to get them moving right now, before the end of March.
Here's why. FCA dealer incentives are predicated on the dealer hitting his monthly sales targets. This is known internally as the Volume Growth Program. Hitting the target means the dealer receives very substantial bonus money -- often up to another $800-1000 -- for every vehicle sold that month. Failure to hit the number means losing the bonus on all the cars sold. It's not quite an all-or-nothing deal, but the incentive for a dealer to reach his goal is huge; frequently a six-figure dollar amount every month. If a dealer is one or two cars short of his goal in the last day or two of the month, many will be willing to lose money on an individual transaction if it means reaching the overall monthly goal.
What does this mean in practice? Here's my example which includes the fact that I qualified for the $1,000 competitive conquest rebate. I'm picking up a new 2016 Renegade Latitude 4WD 75th Anniversary with Navigation/6.5" Uconnect system. The MSRP is $27,615. My price, before tax and the usual fees, is below $18,500. That's 1/3 off of MSRP and much less than the prices I've seen for comparable used Renegades. It's crazy good. The deal includes $5,000 of direct FCA incentives and over $4,000 of discounts by the dealer to clear out the 2016 model.
YMMV, but if you're even considering a new Renegade and are willing to get a 2016 model, it's time to jump on it. You can use various search tools, including the inventory search on Jeep.com, to search dealer inventory by geographic area. If you find what you're looking for, then you'll want to contact a couple of dealers, if possible, to have them compete for your business. IT pays to be a little flexible on color and some options. Remember, dealers will be most interested in selling vehicles from their own inventory, not in doing a dealer trade. Basically, you walk in the door with $4-5,000 in incentives on your side, plus whatever your dealer adds to the pot to sell a car from his stock before the end of March. Once again, the specific incentives used in my example apply to the Great Lakes area. However, FCA has similar incentives in all parts of the US.
Good luck. PM me if you're interested in the specific dealer from whom I'm buying. He has 3-4 more 2016 Renegades that are highly incentivised. I have no financial interest in any of this, apart from achieving the best possible deal on my own new Renegade.