What’s the Best New-Car Deal for February 2023?

Despite being the shortest month, February also tends to be the coldest, making it feel like it’s dragging out beyond its allotted 28 (or 29) days. As Punxsutawney Phil predicts six more weeks of winter, car shoppers may empathize more with the critter’s namesake Phil Connors, played by Bill Murray in “Groundhog Day”: In the film, Connors finds himself repeatedly waking up to the same Feb. 2 day only to experience a series of recurring missteps and misfortunes. When it comes to buying a new car, rising prices, reduced incentives and inventory constraints have dragged on for years, leaving some shoppers feeling stuck. Luckily, there are signs the market has finally reached a turning point.

Related: 2023 Cars.com Affordability Report: Best Value New Cars

One indication the metaphorical Groundhog Day of the inventory shortage is coming to an end is that new vehicles are spending more time on dealer lots. According to J.D. Power’s January sales forecast, the average vehicle now stays on a lot for 27 days, up from 19 days a year ago (but still well below the pre-pandemic 70-day average). And as inventory starts to rebound, vehicle markups are also becoming less common, while average incentives are slowly creeping up. J.D. Power estimates 33% of vehicles were sold above MSRP in January, down from a record high of 48% in July 2022. The average new-car incentive for January was estimated at $1,260, a slight improvement over the $1,187 average seen in December.

Unfortunately, several hurdles persist. Average new-car transaction prices continue to increase every month, reaching $46,437 in January — up 4% from a year prior. Meanwhile, auto loan interest rates are also on the rise, averaging 6.8% for January — an increase of 2.64% from the same time a year ago. Finally, shoppers looking to trade in a used car may find that the vehicle’s value has dropped in recent months: J.D. Power estimates the average trade-in value in January was $9,350. While that’s $709 less than the record high seen in June 2022, it’s still more than double the average pre-pandemic level.

Following the lead of Phil Connors at the conclusion of “Groundhog Day,” shoppers can determine their own fate, at least when it comes to saving on a new-car purchase. For example, shopping around for the best trade-in offer can help offset the price of the new vehicle, while choosing one of the four best deals below can also provide some relief from rising prices and interest rates.

2022 Chevrolet Equinox

• Factory discount: $1,000
• Approximate price after savings: $26,500-$44,000
• Approximate factory savings: 2%-4%
• Offer ends: Feb. 28

The Equinox was updated for 2022 with new styling and wireless Apple CarPlay and Android Auto, and although the 2023 Equinox is now available, it’s the 2022 model that brings the savings this month with $1,000 off on all trims in the regions we surveyed. In lieu of the cash offer, qualified shoppers who finance with Chevy parent automaker GM can get 2.99% for 60 months. While 2023 models may be easier to find on dealer lots at this point, 2022s are still out there: Among Cars.com dealers, the 2022 Equinox accounts for approximately 14% of all new variants, with roughly 3,800 units available at the time of this writing. All cash and financing deals are available through Feb. 28.

2023 Ford Escape

• Factory discount: $1,000
• Approximate price after savings: 2-3%
• Approximate factory savings: $28,000-$45,000
• Offer ends: April 3

Like the rival Equinox, the Escape recently got a minor refresh with styling tweaks and tech upgrades that include a new front end and an available 13.2-inch center touchscreen with Ford’s latest Sync 4 multimedia system. The Blue Oval is currently offering $1,000 off on the updated 2023 Escape in half of the regions we surveyed with two notable caveats: The deal applies to all trim levels except the plug-in hybrid, and it’s only valid on retail orders placed through a dealer; shoppers who stumble upon a 2023 model at a dealership are not eligible for the discount. But seeing as only a few hundred examples were available via Cars.com dealers as of this writing, placing an order may be the better bet. The discount runs through April 3.

2023 Jeep Grand Cherokee

• Factory discount: $1,000-$4,000
• Approximate price after savings: $40,000-$75,500
• Approximate factory savings: 1%-8%
• Offer ends: Feb. 28

After a full redesign for 2022, the 2023 Grand Cherokee offers more standard safety and tech features than the previous generation; however, the SUV also brings a price bump over last year’s model. Shoppers who pull the trigger on a 2023 Grand Cherokee in February can help offset the price increase with cash discounts ranging from $1,000 to $4,000, trim depending, in the markets we surveyed. Qualified shoppers who skip the cash-only deals and finance with Jeep parent Stellantis can get a special rate of 7.26% for 60 months with up to $4,000 in bonus cash or 1.9% for 72 months with up to $2,000 in bonus cash. All aforementioned cash and financing deals are available through the end of the month.

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

• Factory discount: $3,000-$6,500
• Approximate price after savings: $36,000-$72,500
• Approximate factory savings: 4%-14%
• Offer ends: Feb.  28

Ram plans to electrify the 1500 pickup truck in the coming years, but shoppers that don’t want to wait for the battery-powered rig can save thousands on the 2022 Ram 1500, which still runs on gas or diesel for now. The 1500’s Big Horn and Texas-specific Lone Star trims come with discounts ranging from $3,000 to $6,500, depending on the region, and even more money off if you go for specific variants equipped with packages. In place of the cash-only offer, shoppers who finance with Ram parent Stellantis can take advantage of region-dependent financing rates of 1.9% for 60 months, 2.9% for 72 months, or 0% for 72 months and up to $7,000 in bonus cash. Finding a 2022 model shouldn’t prove too cumbersome: Approximately 13,500 examples of the Big Horn and Lone Star models were seen among Cars.com dealers at the time of this writing, accounting for 65% of all new models.  All cash and financing offers are available through February.

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:

• Here Are the 10 Cheapest New SUVs You Can Buy Right Now
• Here Are the 10 Cheapest Pickup Trucks You Can Buy Right Now
• Inventory Shortage Update: Should You Wait to Buy a Car?
• 2022 Jeep Grand Cherokee Goes High-Tech, Gets Hybrid
• 2022 Jeep Grand Cherokee 2-Row’s Updates Come at a Cost, But No 4xe Pricing Yet

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