Honda announces national drive-away pricing

Honda buyers will pay more and have access to fewer models under the Honda Price Promise announced today by the Japanese brand as part of the new agency sales model it will adopt in Australia from July 1.

From next week, Honda says customers will pay the same national drive-away price for their new vehicle regardless of which Honda dealer they visit.

The ‘transparent’ nationwide price will include all on-road statutory and delivery charges, a five-year unlimited-kilometre factory warranty (limited to 140,000km for commercial buyers), five-year premium roadside assistance and even metallic or pearlescent paint colours.

The only other extra cost for new-vehicle buyers will be genuine accessories.

In addition, Honda has announced a new five-year service plan capped at $125 for each of the first five standard scheduled services, equating to $625 over the five years or 50,000km of ownership. Honda says that represents an average saving of around $1250 for the customer.

Combined with Premium Roadside Assistance, which was previously only available to customers as part of an extra-cost extended warranty package, Honda claims customers will receive an additional $2000 of additional value.

However, as you can see from the national drive-away price list announced today, the range has been cut to five core models following the axing of the Honda Jazz and the Civic sedan and Type R.

Also as expected, base prices are up across the line-up following the inclusion of on-road costs and the deletion of some base variants.

For example, despite recent price hikes and being in runout ahead of an all-new model due here later this year, the Honda Civic hatch range now comprises just three variants – down from six – with the VTi-S opening the range at $31,000 drive-away.

Previously, the Civic hatch range opened at $23,790 plus on-road costs for the VTi, which is now discontinued, while the VTi-S was previously priced at $26,490 plus ORCs.

The only other variants remaining in the Civic five-door range are the VTi-L for $34,900 drive-away (previously $30,290 plus ORCs) and the RS for $39,600 drive-away (previously $34,790 plus ORCs), following the axing of the base VTi, flagship VTi-LX and the Type R hot hatch.

The 2021 Civic VTi-S will be the cheapest new Honda available from July 1, following the axing of the Jazz and Honda Australia’s decision not to import the new City sedan either.

The brand’s top-selling model, the Honda CR-V, continues to be available in six variants but now starts at $35,300 drive-away for the Vi (previously $30,490 plus ORCs). There are similar price hikes across the five/seven-seat and 2WD/AWD CR-V line-up, including the top-shelf VTi LX AWD – now $53,200 drive-away instead of $47,490 plus ORCs.

Likewise, the smaller Honda HR-V, which will be replaced by a new model in early 2022, remains available in four front-drive variants, but now priced at $31,300 drive-away for the VTi (previously $26,900 plus ORCs).

Two variants of the Honda Odyssey remain available too – at least for the time being before production ends later this year – but the base Vi L7 now costs $48,700 drive-away (previously $44,250 plus ORCs) and the flagship Vi LX7 is now set at $56,000 drive-away (up from $51,150 plus ORCs).

The biggest price increases have been applied to the Honda Accord, which remains on sale in two forms but now priced from $57,400 drive-away for the VTi-LX 1.5L Turbo (previously $47,990 plus ORCs), with the VTi-LX 2.0L Hybrid priced at $60,400 drive-away (previously $50,490 plus ORCs).

Honda Australia director Stephen Collins said the Honda Price Promise is a key pillar of the company’s move to an agency sales model, which Mercedes-Benz will adopt from 2022.

He said it will revolutionise the new-car buying experience in Australia, transform the business from a volume-driven operation to “a leading customer experience brand”, set the brand up for a sustainable future and make way for the next generation of Honda vehicles.

“All our research shows one of the most common pain points associated with the purchase of a new car is the need to negotiate and haggle on price,” said Collins.

“Under our new agency model, this will no longer be necessary to determine the price of a new vehicle, which is a significant change for Australians who have been trained to buy new vehicles by negotiation.

“We know this new way of buying a car won’t be for everybody, but we are confident it will address the needs of the vast majority of new car buyers, while delivering a more relational, less transactional experience.

“Every decision by Honda Australia, in re-engineering the entire business, has been made with the pursuit of an enhanced customer experience in mind.”

How much does the 2021 Honda Civic hatch cost?
VTi-S – $31,000
VTi-L – $34,900
RS – $39,600

How much does the 2021 Honda Accord cost?
VTi-LX 1.5L Turbo – $57,400
VTi-LX 2.0L Hybrid – $60,400

How much does the 2021 Honda Odyssey cost?
Vi L7 – $48,700
Vi LX7 – $56,000

How much does the 2021 Honda HR-V cost?
VTi – $31,300
VTi-S – $35,100
RS – $38,500
VTi-LX – $41,000

How much does the 2021 Honda CR-V cost?
Vi – $35,300
VTi – $38,300
VTi 7 – $40,300
VTi X – $41,200
VTi L AWD – $45,500
VTi L7 – $48,700
VTi LX AWD – $53,200

*All prices are drive-away (including on-road costs)