As industry analysts predicted, Honda’s new fixed-price business model has resulted in price increases for nearly every model.
Almost every new Honda vehicle will be more expensive for Australian buyers when Honda introduces its new fixed-price business model at the start of next month.
The entry-level Honda Civic has increased by more than $6000 – from a recent low of $24,990 drive-away for three months last year – and the range now starts at $31,000 drive-away with a better-equipped model.
As part of the changes, Honda will implement nationwide fixed pricing on July 1, 2021.
Other models in the range will see price increases ranging from $251 for the Civic VTi-L hatch to $977 for the HR-V VTi SUV, based on metro Sydney pricing.
However, for the first five years, capped price servicing for routine maintenance is reduced to $125 per visit.
Metallic and pearlescent paint are already included in the drive-away price, as was previously the case.
The Honda Civic VTi hatchback, which was previously the brand’s entry-level model, has been dropped from the lineup, with the Civic range now starting at $31,000. Previously, this model was offered at a drive-away price of as low as $24,990.
Only one model in the 18-car lineup has seen a price reduction: the Accord VTi-LX 2.0-litre Hybrid sedan, which has been reduced by $106.
Honda is not the only company to offer fixed pricing in Australia – Tesla and Hyundai’s luxury subsidiary Genesis currently do not negotiate prices in the country, and Mercedes-Benz is set to follow suit in January 2022.
As previously reported by CarAdvice, experts have noted that a move to fixed-price business models will almost certainly result in increased prices.
John Krafcik, a former executive at Ford, Hyundai, Google, and Waymo, stated: “In a one-price environment for direct to consumer, the manufacturer sets the (retail price) and there is no room for negotiation, resulting in higher transaction prices.”
The table below contains all price comparisons between current and soon-to-be-introduced prices.
|Model||Grade||Existing prices (drive-away, calculated in metro Sydney)||New drive-away price|
|Accord||VTi-LX (1.5-litre turbo)||$57,190||$57,400|
|VTi-LX (2.0-litre Hybrid)||$60,506||$60,400|
|VTi L AWD||$45,155||$45,500|
|VTi LX AWD||$52,841||$53,200|