To raise the Discovery's profile, Land Rover is offering a 30-day/1,500-mile money-back guarantee through May.
Discovery sales were off 36.8 percent in January and February from the year-ago period.
Land Rover spokesman Oliver Breary says many potential buyers believe that the Discovery costs as much as the higher-priced Range Rover.
The Discovery's base price is $34,620, including a $625 delivery charge; The Range Rover, including $625 delivery, starts at $36,290.
The Discovery is not the only upscale sport-utility fighting soft sales. Sales of the Lincoln Navigator dropped 22.9 percent in the first two months compared with the same period in 2000. The Mercedes-Benz ML320 dropped 23..9 percent.
Jeff Schuster, director of North American forecasting for J.D. Power and Associates, says the segment is becoming splintered, while the market is not expanding.
J.D. Power research forecasts that luxury sport-utilities will lose 0.4 percent of their share of the sport-utility market this year compared with 2000.
But J.D. Power predicts the high-end sport-utility segment will expand by 2004 as models are introduced in the next three years.
That, Schuster says, could confound efforts by a small-volume player, such as Land Rover, to have its products noticed.