What’s the Best New-Car Deal for February 2022?

As we turned — or, rather, swiped — our calendars to February, Punxsutawney Phil has predicted we’re in for six more weeks of winter. But as many areas of the country see falling snow and temps, the soothsaying rodent has failed to predict when vehicle prices will follow suit. The ongoing inventory shortage has caused average new-vehicle prices to remain elevated while average incentives continue to drop. Vehicle inventory will likely be constrained through 2022 and into 2023, leaving shoppers with a tough decision: Wait to buy a car or bite the bullet and head to the dealership?

Related: Inventory Shortage Leaves Little Room for Haggling; Here Are 5 Other Ways to Save on Your Car Purchase

According to J.D. Power’s January sales forecast, inventory is at historic lows while average transaction prices remain near record highs. With demand for vehicles still outpacing production, approximately 53% of vehicles were sold within just 10 days of arriving at a dealership last month, the firm reports. Meanwhile, average new-car transaction prices were expected to reach a record high of $44,905 in January, while manufacturer incentives shrunk to an average of $1,319, down $2,163 from a year ago. The average new-car incentive as a percentage of MSRP was 2.9%, falling below 3% for the first time in the consulting firm’s records.

Despite the discouraging news from both groundhog and J.D. Power, there’s some good news that could warm the hearts of SUV and pickup truck shoppers. We found substantial savings on several popular vehicles this month, but it helps to be flexible on factors like the trim level and model year (some 2021 models offer larger discounts, with some still in relative supply). Below is our roundup of the best incentives for February.

2021 Jeep Gladiator

• Factory discount: $0 to $2,500
• Approximate price after savings: $35,000-$77,000
• Approximate factory savings: 0%-6%
• Offer ends: Feb. 21 or Feb. 28, depending on specifics

The 2022 Jeep Gladiator is on sale now, but the 2021 model brings the savings this month. Choosing the 2021 Gladiator can help shoppers skip the price increase of the 2022 model and also get a generous cash discount on select trims in most areas we surveyed. Not much has changed for the 2022 Gladiator outside of minor tech upgrades, so hunting down the previous model year may be worth the effort. Through the end of February, shoppers can save up to $2,500 on Jeep’s mid-size, off-road-ready pickup.

Finding a 2021 Gladiator may be a challenge, but it’s not impossible. The 2021 model year made up approximately 37% of new Gladiator inventory among Cars.com dealers in January. Qualified shoppers who finance with Jeep parent company Stellantis can trade the cash discount for a special financing rate — 0% for 36 months with up to $2,000 in bonus cash or 2.9% for 60 months with up to $1,000, region depending. Most financing and cash offers we observed extend through Feb. 28, but some end Feb. 21; be sure to check Jeep’s website for specifics to your area.

2021 Jeep Grand Cherokee

• Factory discount: $1,900 to $2,900, excluding SRT
• Approximate price after savings: $34,500 to $59,000, excluding SRT
• Approximate factory savings: 3%-7%, excluding SRT, Trackhawk
• Offer ends: Feb. 28

Grand Cherokee shoppers have options. There’s the outgoing 2021 model, which offers the deals outlined above, as well as the redesigned 2022 Grand Cherokee, which arrives with a tech overhaul, new styling and increased occupant space. There’s also a new stand-alone model related to the redesigned Grand Cherokee: the Grand Cherokee L, which adds a third row to the mix. Finally, there’s a 2022 Grand Cherokee WK, a carryover of the outgoing two-row SUV.

Budget-conscious shoppers would be best served to find a non-L 2021 Grand Cherokee, a model year that still comprised more than half of all new non-L inventory at Cars.com dealers in January. The outgoing Grand Cherokee offers cash-back savings between $1,900 and $2,900 on most models, from the base Laredo to the off-road Trailhawk, depending on region (deals exclude the SRT). Shoppers who finance with Stellantis can forgo the cash discounts to take advantage of special financing rates: 0% for 72 months or 0% for 48 months, the latter with as much as $3,650 in bonus cash (again, excluding the SRT). Both the financing and cash offers are valid through Feb. 28.

2022 Kia Sportage

• Factory discount: $750
• Approximate price after savings: $24,500-$38,000
• Approximate factory savings: 2%-3%
• Offer ends: Feb. 28

The popular Sportage was the Kia’s bestselling SUV in 2021, even inching out the Telluride to take the top spot. The compact Sportage gets redesigned for 2023 with more space inside and a new hybrid powertrain, and it’s expected to go on sale soon. Shoppers who don’t want to wait for that can choose from one of the 2022 model’s four trim levels and two engine options, including a 240-horsepower, turbocharged four-cylinder. Going with the 2022 Sportage also means getting a cash-back offer of $750 in all regions we surveyed, enough for a savings of 2% to 3% depending on specifics. It ain’t much, but such is the shopping environment.

With the 2023 Sportage not yet available, 2022 models account for 96% of inventory among Cars.com dealers. Creditworthy shoppers who finance with Kia can get a special rate of 0.9% for 60 months in lieu of the cash offer; both deals are valid through Feb. 28.

Editor’s Choice: 2022 Ram 1500 Big Horn/Lone Star

• Factory discount: $1,250-$4,000
• Approximate price after savings: $38,000-$71,000
• Approximate factory savings: 2%-10%
• Offer ends: Feb. 21 or Feb. 28, depending on specifics

The 2022 Ram 1500 again takes the gold as Editor’s Choice this month, with up to 10% off in savings for the popular Big Horn and equivalent, Texas-exclusive Lone Star trim levels. The Big Horn gets a new BackCounty Package with exclusive styling and off-road upgrades for 2022, along with Ram’s latest Uconnect 5 system as standard equipment. In the regions we surveyed, Ram posted savings between $1,250 and $4,000 on the Big Horn or Lone Star through the end of the month.

The truck’s mainstream trims, the Big Horn and Lone Star make up 55% of Cars.com dealer inventory for the 2022 Ram 1500. Qualified shoppers who finance with Ram parent Stellantis can trade the above cash offers for special financing of 0% for 48 months with up to $2,500 in bonus cash or 2.9% financing for 72 months with up to $3,000 bonus cash in select regions. All offers are valid through Feb. 28.

How We Look for Deals

To help car shoppers find the best deals for February, we lead with cash offers available to shoppers at large, not those that require financing with the automaker or having certain qualifications (e.g., military or college-graduate discounts, loyalty or conquest bonuses, etc.). In calculating the overall percentage discount and pricing after incentives, we focus on the vehicle’s price range from the cheapest incentives-eligible trim level with no factory options to the priciest eligible trim with all factory options. We include the destination charge in such pricing, but we exclude a few other items: taxes and fees, which vary considerably by region, and dealer accessories, which vary considerably by automaker.

Because these are factory discounts, they should be available to all participating dealers. As such, use them as the starting point for negotiations, not a reason to skip haggling altogether.

Incentives data come from automakers’ websites. Remember, our numbers are current as of publication for the markets we survey (generally Atlanta, Chicago, Denver, Houston, Los Angeles and New York). They reflect advertised customer discounts, not unadvertised factory-to-dealer cash. Discount financing typically requires qualifying credit, too, and incentives may vary by region and trim level; automakers may also change them later in the month. In sum: Your discounts may vary, so check with your local dealer for specifics.

More From Cars.com:

• J.D. Power 2021 Initial Quality Study: Ram on Top, Wireless Phone Connectivity Spells Trouble
• Jeep Grand Cherokee: Which Should You Buy, 2020 or 2021?
• Up Close With the 2023 Kia Sportage: Bigger Really Is Better
• 2020 Jeep Gladiator Review: Unique, Expensive and Massively Entertaining
• Car Shoppers Face Shorter Supply, Rising Prices

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Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.