What’s the Best New-Car Deal for August 2021?

If this were a normal year, automakers would be gearing up for a major season of discounts as incoming 2022 models arrive and summer comes to a close. But the current state of the auto industry is far from normal: An ongoing microchip shortage has caused major delays in new-vehicle production, reduced inventory and fewer incentives.

Related: How Long Will the Vehicle Inventory Shortage Last?

According to J.D. Power’s latest forecast, inventory levels are down threefold compared with pre-COVID levels. At the end of July, dealers had 932,000 vehicles available for retail sale, compared with 3.1 million two years ago — and incentives are dwindling. The organization reports July incentives were at a record low of 4.8%, dropping under 5% for the first time since J.D. Power began tracking such data.

Despite the seemingly barren landscape of available vehicles and discounts, shoppers looking to buy a car this month can find a few deals. With Labor Day approaching, we found several generous cash and financing deals for in-demand vehicles, including pickup trucks and compact SUVs.

The key to navigating the vehicle shortage is flexibility. Shoppers who are willing to cross-shop various brands, models and trim levels will have better luck finding a vehicle in stock. It also helps to research vehicles that are still available, compare new and used vehicle prices, and take note of all available deals. We rounded up four of the best new-car deals for August, with savings of up to 15% off list price. Read on for the details.

Chevrolet Equinox

• Factory discount: $3,000, excluding base trim
• Approximate price after savings: $24,500-$43,000
• Approximate factory savings: 6-11%
• Offer ends: Aug. 31

Shoppers looking to save on a compact SUV this summer should consider the 2021 Chevrolet Equinox. With the updated 2022 Equinox popping up at dealerships, the outgoing model year (which still comprises 4 out of 5 new Equinoxes in Cars.com inventory as of this writing) has a cash discount of $3,000 on all trim levels besides the hard-to-find base model, called the L. Chevrolet’s discount includes the LS, LT and range-topping Premium models, which presents savings from 6% to 11% depending on trim and options. Creditworthy shoppers can forgo the cash deal in exchange for 0% financing for 72 months if they finance with parent company GM. Both deals are available through Aug. 31.

Kia Sportage

• Factory discount: $1,500
• Approximate price after savings: $24,000-$35,500
• Approximate factory savings: 4-6%
• Offer ends: Sept. 7

Automakers typically offer the steepest discounts on slow-selling models, but the Kia Sportage is an exception to this rule. The Sportage is the automaker’s bestselling SUV, and it returns for 2022 with no major changes or price hikes. In addition to keeping the starting price ($25,655 with destination) in line with the previous model year, Kia is offering a $1,500 cash back offer on the compact SUV for 2022. The deal is valid across all metro areas we surveyed, and it can be applied to any trim level. Well-qualified shoppers who finance through Kia can get 0% financing for 60 months in lieu of the cash offer. Both expire Sept. 7.

Jeep Grand Cherokee

• Factory discount: $2,250-$4,250, excluding SRT and Trackhawk
• Approximate price after savings: $32,000-$71,500
• Approximate factory savings: 3-12%
• Offer ends: Aug. 31

Bargain hunters searching for an SUV that takes on highways and unpaved roads should explore this month’s available deals on the 2021 Jeep Grand Cherokee. Jeep is offering $2,250 to $4,250 off on the family-friendly SUV, depending on trim level and location, with another $500 to $1,500 in most cases in bonus cash (not reflected in the bullets above) for those who finance at standard rates through the brand’s parent company, Stellantis. Shoppers should note that this deal is not available for the Grand Cherokee’s two performance-minded trim levels, the SRT and Trackhawk; it also excludes the three-row Grand Cherokee L, an all-new SUV related in name only to the two-row Grand Cherokee. Alternately, qualified shoppers who finance at discount rates with Stellantis can get 0% financing for 48 months, with thousands of dollars in additional bonus cash for most areas we surveyed. The cash and financing offers are valid through Aug. 31.

Editor’s Choice: Ram 1500 Classic

• Factory discount: $2,500-$5,000
• Approximate price after savings: $29,500-$61,500
• Approximate factory savings: 4-15%
• Offer ends: Aug. 31

Finding a pickup truck among the inventory shortage is undeniably a challenge, but shoppers willing to forgo the new Ram 1500 in favor of the prior-generation 1500 Classic can drive away with a deal. The 1500 Classic comes in just three trims: Tradesman, Express and Warlock. None of them offer the luxury appointments found on higher trims of the 1500 sans Classic, but Ram has several generous cash offers this month on the workhorse pickup. Shoppers can save up to $5,000 on the base Tradesman model or $2,500 to $4,000 on the other two trims, depending on region and other specifics, with $750 bonus cash (again, not reflected in the bullets) for those who finance at standard rates through Ram parent Stellantis. As an alternative, 0% financing for 48 months with additional bonus cash is available to creditworthy shoppers who finance through Stellantis. Deals expire Aug. 31.

More From Cars.com:

• How to Win the Car Financing Game
• Understanding Factory-to-Dealer Incentives
• Glossary of Car Leasing Terms
• How Does Leasing a Car Work?
• We Bought a 2021 Ford F-150: Here’s How Much We Paid

How We Look for Deals

To help car shoppers find the best deals for August, we researched deals among the top 50 bestselling models in the U.S. for the first two quarters of 2021, based on Automotive News’ sales data. We lead with cash deals 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, while days-to-turn data come from Cars.com inventory. 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.

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.