$4-5,000 off a new 2016 Renegade, even before you start negotiating - Jeep Renegade Forum
 
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post #1 of 10 (permalink) Old 03-18-2017, 11:40 AM Thread Starter
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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.
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post #2 of 10 (permalink) Old 03-19-2017, 11:47 PM
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Originally Posted by Mr LeRoy View Post
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.
I got my Trailhawk mid January at a HUGE discount!! Mine listed for $30,755. I paid $22,500 plus my car, which they were giving me $1000. I was lucky to get that for my 16 year old Benz. Other dealers were offering me $800 and below. The sales manager said to me, at my final signing, that they lost money on my deal, and I got it below their cost..but that they do that from time to time to make a sale and then make it up on other sales where they don't need to move things along as much. I was so thrilled!! Nothing like the feeling of getting a great deal on a brand new Jeep!! Sounds like your deal is even better...that's Great!! Best of Luck!! thanks for all the great pricing info!
Cheers!!!

KIMBERLY

Last edited by Kimberly Renegade Obsses; 03-19-2017 at 11:49 PM.
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post #3 of 10 (permalink) Old 03-20-2017, 08:50 AM
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That's exactly why I purchased my Renegade! I ended up purchasing a 2016 Limited 4x4, 6.5 nav, almost everything, except the MySky, for 20% off MSRP PLUS the qualifying FCA Incentives which equaled about $4500. My car, which MSRP'd at about 29,755, was actually sold to me for just over 19k.
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post #4 of 10 (permalink) Old 03-28-2017, 11:04 AM
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I am in the Northeast and I am looking at a 2016 Renegade Limited 4x4, 6.5 Nav, My Sky, blind spot detection, and the dealer has taken $7000 off the MSRP including rebates. Is this a good deal? The dealer said the rebates end March 31. After March 31, will the deals get better?

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post #5 of 10 (permalink) Old 03-28-2017, 11:15 AM
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Originally Posted by mistahhdj View Post
That's exactly why I purchased my Renegade! I ended up purchasing a 2016 Limited 4x4, 6.5 nav, almost everything, except the MySky, for 20% off MSRP PLUS the qualifying FCA Incentives which equaled about $4500. My car, which MSRP'd at about 29,755, was actually sold to me for just over 19k.
Which dealership did you buy it at?
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post #6 of 10 (permalink) Old 03-28-2017, 12:32 PM
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Which dealership did you buy it at?
I bought mine at Colonial Jeep in Hudson!
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post #7 of 10 (permalink) Old 03-28-2017, 12:40 PM
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I have a caution to offer with incentives.... i learned the hard way that if you have lemon buyback you don't recover the incentive portion. Normally this would be a wash, but if you show negative equity in a trade and use the incentive to fill in the gap to make the deal and then the end up with a lemon buyback you loose the difference.

If you went with 0% interest offer instead, you would loose nothing in a buyback. I lost about $2,000 on a renegade i effectively drove for 3 weeks. This could be very hard to swallow with bigger and bigger incentives.
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post #8 of 10 (permalink) Old 03-28-2017, 02:54 PM
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Originally Posted by muddyrover View Post
I have a caution to offer with incentives.... i learned the hard way that if you have lemon buyback you don't recover the incentive portion. Normally this would be a wash, but if you show negative equity in a trade and use the incentive to fill in the gap to make the deal and then the end up with a lemon buyback you loose the difference.

If you went with 0% interest offer instead, you would loose nothing in a buyback. I lost about $2,000 on a renegade i effectively drove for 3 weeks. This could be very hard to swallow with bigger and bigger incentives.


That's the exact reason I purchased GAP Insurance on my loan, covers up to 150% of the vehicle value should the vehicle be deemed a lemon, or a total loss.
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post #9 of 10 (permalink) Old 03-28-2017, 06:18 PM
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That's the exact reason I purchased GAP Insurance on my loan, covers up to 150% of the vehicle value should the vehicle be deemed a lemon, or a total loss.
Yah... what got me was a percieved negative equity for high mileage on my trade that i was ok with because of the cash back. I threw in a $2000 down payment to cover that and some of the tax

. I don't think gap would have helped me because of the down payment... they buyback covered the loan minus the interest. I have to wait until NY is good and ready to pay me back for the tax.

Live and learn i guess. Buyer beware.
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post #10 of 10 (permalink) Old 03-31-2017, 10:24 AM
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Originally Posted by muddyrover View Post
I have a caution to offer with incentives.... i learned the hard way that if you have lemon buyback you don't recover the incentive portion. Normally this would be a wash, but if you show negative equity in a trade and use the incentive to fill in the gap to make the deal and then the end up with a lemon buyback you loose the difference.

If you went with 0% interest offer instead, you would loose nothing in a buyback. I lost about $2,000 on a renegade i effectively drove for 3 weeks. This could be very hard to swallow with bigger and bigger incentives.
Actually not correct if FCA buys it back with a replacement offer. Here are the terms
1) they give you full msrp for the lemon
2) you must buyanother FCA vehicle for full msrp
3) You laso have the option of a direct replacement of the vehicle with a brand new identical vehicle and do an equity switch out on your loan

2015 Cherokee TH (FCA bought back)gone like the wind
2016 Renegade TH is here
2015 Audi SQ5

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