Honda raises prices across most models, as fixed-pricing rolls out from July 1
As predicted by industry experts, Honda's new fixed-price business model has led to hikes for almost every model.
Almost every Honda new car will be more expensive for Australian buyers when its new fixed-price business model is introduced at the beginning of next month.
The cheapest Honda Civic has risen by more than $6000 – from its most recent low of $24,990 drive-away for three months last year – and the range now starts with a better-equipped VTi-S model from $31,000 drive-away.
As part of the changes, from July 1, 2021 Honda will move to nationwide fixed pricing.
Price rises on other models in the range vary from $251 for the Civic VTi-L hatch and $977 for the HR-V VTi SUV, when calculated using metro Sydney pricing.
However, capped price servicing for routine maintenance is reduced to $125 per visit for the first five years.
As was previously the case, metallic and pearlescent paint is already factored into the drive-away price.
The base model Honda Civic VTi hatch – which was formerly the brand’s cheapest vehicle – has been axed from the line-up, with the Civic range now starting from $31,000. Previously this model limboed to as low as $24,990 drive-away.
The only model in the 18-car line-up to record a price cut is the Accord VTi-LX 2.0-litre Hybrid sedan, trimmed by $106.
Honda is not the only company to offer fixed pricing – Tesla and Hyundai's luxury subsidiary Genesis currently do not negotiate on price in Australia, while Mercedes-Benz is set to introduce a similar business model in January 2022.
As previously reported expert analysts have noted a shift to fixed-price business models will likely lead to higher prices.
John Krafcik – a former senior executive at Ford, Hyundai, Google and Waymo – said: “In a one-price environment for direct to consumer, the manufacturer sets the (RRP) and there’s no room for negotiation, so it will result in higher transaction prices.”
Model | Grade | Existing prices (drive-away, calculated in metro Sydney) | New drive-away price |
Civic Hatch | VTi-S | $30,735 | $31,000 |
VTi-L | $34,649 | $34,900 | |
RS | $39,284 | $39,600 | |
Accord | VTi-LX (1.5-litre turbo) | $57,190 | $57,400 |
VTi-LX (2.0-litre Hybrid) | $60,506 | $60,400 | |
Odyssey | Vi L7 | $48,381 | $48,700 |
Vi LX7 | $55,626 | $56,000 | |
HR-V | VTi | $30,323 | $31,300 |
VTi-S | $34,752 | $35,100 | |
RS | $38,151 | $38,500 | |
VTi-LX | $40,676 | $41,000 | |
CR-V | Vi | $34,855 | $35,300 |
VTi | $37,842 | $38,300 | |
VTi 7 | $39,965 | $40,300 | |
VTi X | $40,892 | $41,200 | |
VTi L AWD | $45,155 | $45,500 | |
VTi L7 | $48,326 | $48,700 | |
VTi LX AWD | $52,841 | $53,200 |