Discounts on new cars have grown rare in recent months. According to Cox Automotive, incentives made up just 5.6% of the average new vehicle transaction in August. That’s nearly a 10-year low and barely more than half of the same figure from August 2019, the last comparable pre-pandemic month. Cox Automotive is the parent company of Kelley Blue Book.
A Shortage of New Cars = A Shortage of Deals
Discounts are especially rare on trucks and SUVs, which Americans have been buying at a rapid pace this year.
Dealers have little reason to offer discounts. A worldwide shortage of microchips has slowed or paused production of many popular vehicles. That leaves dealers with fewer cars to sell. They need to take as much profit as they can from each sale, knowing they can’t count on heavy sales volume.
We probably wouldn’t report on a $1,000 discount on some trucks and SUVs in an ordinary year. But this year, it’s news.
One Catch
The discount is only for Costco members. But no, you don’t have to buy a dozen trucks to qualify. A Costco membership can cost as little as $60 and also gets you into their tire shop, which is famous for its excellent warranties.
Members are eligible for a $1,000 discount on every 2021 and 2022 Chevy Pickup and SUV. Even those like the Chevy Tahoe full-size SUV and Silverado pickup, which dealers are struggling to keep in stock. Shoppers should use the Costco Auto Program to start the process.
Eligible Vehicles:
Eligible vehicles include 2021 and 2022 versions of the Chevrolet:
Costco points out that the deal is separate from other dealer and manufacturer incentives, so buyers should be able to take advantage of both…if they can find any. The offer is good until January 3, 2022.
