Honda treading in foreign territory: Incentive spending up
When you think about an automaker offering up incentives, Honda normally wouldn't spring to mind. With the ongoing success of the Civic and Honda's inability to keep enough Fits on the lot to keep up with demand, it's obvious that the automaker has been doing well with its core models, but it's some of its outlying offerings that aren't selling like hotcakes.
The SUV and minivan segment has been stagnant as of late, and coupled with an increase in production at Honda's plants, the imbalance is affecting the number of Pilots and Odysseys that are hanging around dealer lots. To combat the lethargic sales, Honda is increasing dealer incentives and lease subsidies on the aforementioned people movers, the Ridgeline and the long-in-the-tooth Accord.
Regardless of the move, Honda isn't throwing money on the hood like other automakers, which makes both corporate bigwigs and Honda owners happy, as residual values won't be hampered by a flood of inexpensive models hitting the market.
[Source: Automotive News – Sub. Req.]
Reader Comments (Page 1 of 1)
bmoredlj 9:11AM (7/17/2007)
They're not offering cash back to my knowledge, but they have unpacked and assembled the poorly-animated "Mr. Opportunity" (who's knockin') for the umpteenth time. I appplaud them for sticking with a slogan, but...why HIM?
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Tyk 9:29AM (7/17/2007)
Arent there incentives on most fairly expensive vehicles weighing 5000lbs, nowadays.
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Jay 9:56AM (7/17/2007)
They have the incentives on the Pilot & Ridgeline at $3500 to the dealers for July. Also on the Accord, s2000 and Element there are some with the new models coming out soon. However there is nothing on Oddysey, Civic, CR-V, Fit. Overall they have one of the lowest incentive expendatures and even a 'big' month at Honda is far less then the domestics spend every month... And Honda still turns a profit on their cars!
It is up to the dealer to discount the car below invoice and pass along the savings to the customer or not.
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Tracy 11:01AM (7/17/2007)
They most certainly do have incentives on Civic and Oddysey. Maybe invisible to most but it is in the form of subvented retail and lease rates.
Jay 11:18AM (7/17/2007)
They are not dealer cash, which is what I specifically was talking about. Your point is correct though.
Aaron 10:03AM (7/17/2007)
Nice apology. How much of domestic incentive spending is fueled by full sized trucks which honda does not sell? lmao..
Pilot, Ridgeline and Accord are rather offside for incentives, and the Pilot sales have been championed by lemmings here as remarkable... small wonder.
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Honda Lover 10:28AM (7/17/2007)
Who has championed Pilot sales as remarkable on here? I know I haven't as they haven't sold well at all, or at least as well as Honda invisioned. Just like the Element which sales have been disappointing (though they finally got it with the SC). But both have their niche. Honda won't always hit home runs. But they consistently hit doubles that keep them in the game. And Honda does offer rebates, just not to the customer. They sneakily offer it to the dealership who has the ability to offer part of the discount as a bargaining tool to customers who aren't aware of the manufacturer to dealer incentives.
Mr. Oak 10:28AM (7/17/2007)
The vehicle that I've seen clogging the roadways of late is the Pacifica. Probably because Chryberus have been letting them go for a song. Too bad about them being discontinued though, because everyone I have spoken to really do like their Pacifica.
Folks say the Highlander and Pilot are segment leaders. However, I see more Pacificas than either one of those. Ratio is about 6:1 Pilot and 8:1 Highlander.
Viv 2:30PM (7/17/2007)
What is so wrong about low resale values? I buy my cars one year old for half the price.
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FermitTheKrog 3:10PM (7/17/2007)
Viv : Word.
Barney 5:10PM (7/17/2007)
Wise move as a car looses it's value quicker then the smell of new. In a year the "bugs" should be out of it and the recalls taken care of (if any). A car looses $1000 as soon as it's been sold.
lawtrainee 5:06PM (7/17/2007)
I checked some deal quotes on a Pilot SUV, it was 5,500 under MSRP!!!
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S K 8:59PM (7/17/2007)
Some Honda dealers in MI are offering $2000 off MSRP on the Civic Si.
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Jeevan 3:37PM (7/21/2007)
I think its been going on for almost a year.
I bought my fully loaded Pilot EX-L with Navi last August for a straight $7000 discount & 4.9% APR.
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