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

The new year often brings the promise of a fresh start and the intent to upgrade our routines. But just like most New Year’s resolutions come February, shoppers looking to upgrade their vehicles in 2022 may find that not much has changed from the prior year. Tight inventory and rising prices are stubbornly dragging on as new vehicles continue to fly off dealership lots.

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

J.D. Power’s December sales forecast found some early signs of improvements but reported the supply of vehicles as still far from meeting shopper demand. The average vehicle was spending only 17 days on a dealer lot, the firm said, and over half of new vehicles are sold in 10 days or less.

As vehicle supply is scarce and demand remains high, shoppers can expect the hangover of elevated vehicle prices to stick around in the new year. The average transaction price for a new vehicle set yet another record high in December, at $45,743, and reduced discounts are partially to blame. The average incentive for December was estimated at just $1,598 — or 3.5% off the average MSRP, J.D. Power noted. That’s a dramatic drop from the same time a year prior, when it stood at $3,889.

Out With the Old: Trade-in Values Surge

Even though inventory constraints are expected to linger into late 2022 or even 2023, shoppers can offset some of the aforementioned price increases if they have a vehicle to trade in. J.D. Power reports that average trade-in equity was estimated at $10,199 for December, a whopping 83% increase from the year previous. It’s also the first time that metric has topped $10,000.

Along with negotiating on the trade-in, staying flexible and being prepared to buy as soon as the right vehicle arrives can make the resolution of a new-vehicle purchase a possibility in 2022. Need a sprinkling of savings to go along with it? Try one from among these four SUVs and a pickup truck, which topped our survey of incentives for January.

2021-22 Ford Escape, Excluding Escape Plug-In Hybrid

• Factory discount: $1,000 to $1,500
• Approximate price after savings: $25,000 to $41,000
• Approximate factory savings: 2%-6%
• Offer ends: Jan. 31

The Ford Escape emerged from its 2020 redesign with a new platform, updated engines and a host of technology and safety features. The 2021 Escape offers a choice of two gas-only engines, plus a hybrid and plug-in hybrid offering, along with available all-wheel drive. Through the end of January, shoppers can get $1,000 to $1,500 off, depending on region, for all but the PHEV variant (that’s plug-in hybrid electric vehicle) in most markets we surveyed. (The bullets above detail the 2021 Escape but exclude the PHEV, as Ford is offering minimum incentives for the plug-in among most regions we surveyed.)

The 2021 model year still makes up the majority of Escape inventory among Cars.com dealers — roughly 72% in December — but Ford is offering similar discounts this month for the 2022 Escape (again, generally excluding the PHEV). Shoppers who finance with Ford can trade the cash offer for a special financing rate of 3.9% for 84 months in most areas, though we observed better offers in some areas — 0% for 60 months, for example, or 1.9% for 60 months plus $1,000 in bonus cash. All financing and cash offers are valid through Jan. 31.

2021 Jeep Gladiator

• Factory discount: $0 to $2,500
• Approximate price after savings: $33,500-$77,000
• Approximate factory savings: 0%-7%
• Offer ends: Jan. 31

Pickup truck shoppers who resolve to take more adventures in 2022 can do so with the help of the 2021 Jeep Gladiator, which comes with a price cut of up to $2,500 in select regions. As Jeep’s first pickup in over two decades, the Gladiator strikes a balance of utility and adventure thanks to its 5-foot cargo bed, standard four-wheel drive, a 7,650-pound towing capacity and serious off-road capability. Unlike its Wrangler sibling, the Gladiator is available only as a four-door crew cab and comes with two engine options: a 3.6-liter V-6 or 3.0-liter diesel, which was introduced for 2021. Although the 2022 Gladiator is on sale now, the 2021 model year still accounted for some 65% of all new Gladiator models among Cars.com dealers in December. Discounts can be found on most trims, from the base Sport to the range-topping High Altitude. Additionally, shoppers who finance at standard rates with Jeep parent automaker Stellantis can get $500 in bonus cash, region depending.

In lieu of those discounts, creditworthy shoppers can get discount financing on most regions and trim levels we found, with rates ranging from 0% to 2.9% on terms up to 60 months — some with as much as $2,500 in bonus cash alongside. All financing and cash deals we saw are available through Jan. 31

2021 Jeep Grand Cherokee

• Factory discount: $1,900 to $2,900, excluding SRT, Trackhawk
• Approximate price after savings: $34,500 to $59,000, excluding SRT, Trackhawk
• Approximate factory savings: 3%-7%, excluding SRT, Trackhawk
• Offer ends: Jan. 31

A regular contestant on our monthly deals round-up, the Jeep Grand Cherokee returns to kick off the new year with savings of up to $2,900 in most regions surveyed. An all-new 2022 Grand Cherokee is now available, but the updates don’t come cheap. Shoppers looking to save on the Grand Cherokee should consider the outgoing 2021 model instead for savings of up to 6% (there’s also a carryover version of it for 2022 in the Grand Cherokee WK). The 2021 model year accounted for nearly all Grand Cherokee inventory at Cars.com dealers in December. It comes with a standard 295-horsepower V-6 engine or an optional V-8, which boosts horsepower to 360. Four-wheel drive is available on higher trims.

The cash discounts include most trims, from the base Laredo to the off-road-oriented Trailhawk, with shoppers who finance at standard rates with parent company Stellantis able to get another $500 to $1,500 atop that, depending on region. Alternately, creditworthy shoppers who finance with Stellantis can swap the cash offer for 0% financing, with bonus cash if you pick shorter terms. All offers are valid through Jan. 31 but exclude the Grand Cherokee’s SRT and Trackhawk performance trims.

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

• Factory discount: $1,000-$4,000
• Approximate price after savings: $36,000-$71,000
• Approximate factory savings: 2%-10%
• Offer ends: Jan. 31

The Ram 1500 clinches Editor’s Choice again this month, offering traditional pickup utility thanks to its large cargo bed, 12,750-pound maximum towing capacity and smooth on-road ride. Its Big Horn and equivalent, Texas-exclusive Lone Star trims carry savings from $1,000 to $4,000 for the markets we surveyed. Updates for the 2022 model year include a standard Uconnect 5 operating system on Big Horn/Lone Star trims with more touchscreen space for Apple CarPlay; several new packages also give shoppers more customization options. The latest models make up the majority of all new Ram 1500 stock, accounting for 85% of inventory among Cars.com dealers as of this writing. Shoppers who finance with Ram parent Stellantis can get 0% for 72 months with up to $2,000 in bonus cash or 0% for 48 months with up to $2,500 cash back. As with the others, all of these offers are valid through Jan. 31.

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?
• Ford Escape: Which Should You Buy, 2020 or 2021?
• 2020 Jeep Gladiator Review: Unique, Expensive and Massively Entertaining
• Car Shoppers Face Shorter Supply, Rising Prices

How We Look for Deals

To help car shoppers find the best deals for January, 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.

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.