Honda Australia has launched a major restructuring business model, detailing its new ‘Honda Price Promise’ program ahead of its July 1st 2021 launch. As part of Honda Australia’s new business model, which will see the company own all stock locally and its dealer network shrink, non-negotiable drive away pricing will be offered for each model in the range. On top of that, a new five-year capped price servicing arrangement will see buyers pay just $125 for each 10,000km/yearly service for the first five years.
According to Honda Australia Director Stephen Collins, Honda’s new Price Promise program has been driven by the customer’s experience in buying a new car.
“Many businesses outside of automotive have already realised an end-to-end customer experience that is simple, trusted and enjoyable, is the key to future success,” said Mr. Stephen Collins, Director, Honda Australia.
“Brand experience and ‘moments that matter’ are the new competitive battleground, which is why we have shifted our focus from the auto industry norm of chasing volume, to prioritising a quality customer experience and delivering it at the retail level.”
Instead of using the traditional model of dealers buying cars from the manufacturer at ‘cost’ price and then advertising a price not including on-road costs (that typically varied between states thanks to differing taxes), Honda Australia’s new program involves the company owning every car in stock and offering pricing that will be the same across the country. In addition to that, the prices are non-negotiable – traditionally, buyers would negotiate the price of their car with the dealership – which varied the amount of profit made on each vehicle.
As part of the transition to the Honda Price Promise model, all Honda vehicles will be available with metallic paint included in the price, and a five-year capped price servicing scheme where each 10,000km/yearly service will cost buyers just $125. All Hondas will also come with five years of roadside assistance.
After culling the Jazz, NSX and City ranges, as well as the Civic sedan, Honda’s Australian range continues largely as before. The Civic, CR-V, HR-V, Accord and Odyssey ranges are identical to current models, though the base Civic VTi hatchback and Type R have also been shelved in preparation for the next generation car that’s due within a year. This makes the cheapest Honda in Australia – the Civic VTi-S – $31,000 drive away.
The Honda Price Promise program comes into effect on July 21st, 2021.
Honda Australia range pricing (drive away):
Civic Hatch:
Civic VTi-S: $31,000
Civic VTi-L: $34,900
Civic RS: $39,600
Accord:
Accord VTi-LX 1.5T: $57,400
Accord VTi-LX hybrid: $60,400
Odyssey:
Odyssey Vi L7: $48,700
Odyssey Vi LX7: $56,000
HR-V:
HR-V VTi: $31,300
HR-V VTi-S: $35,100
HR-V RS: $38,500
HR-V VTi-LX: $41,000
CR-V:
CR-V Vi: $35,300
CR-V VTi: $38,300
CR-V VTi 7: $40,300
CR-V VTi X: $41,200
CR-V VTi L AWD: $45,500
CR-V VTi L7: $48,700
CR-V VTi-LX: $53,200
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