I was browsing some new cars that are coming in and I noticed the new Honda Civic 2022 priced at $47200 Driveaway.
I'm blown away. This car is overpriced to the t*ts. And the are only offering one model VTi LX.
I know that Honda's been hit hard by the shortage of chips and also sale figures plummeting. But this isn't going to help them at all.
Maybe I'm just having a sook. Hahaha
That is true but within reason surely? Honda is pricing itself out of the Australian Market. Its really a shame too their new honda civic 2022 sedan SI overseas really looks nice.
Supply and demand.
Surely no one is that desperate to pay $47k for a civic
You can get a civic hatch rs for $40k
$47k
almost 50k. ridiculous.
I understand. But there is no demand for Hondas. So it makes me scratch my head.
Look at their last month sales data. It's sinking like a rock.
And with this car? I seriously doubt their little strat will work. It's a real shame.
Guess this is how it ends for Honda in Australia.
@postform: Luckily you're not living in the USA.
https://preview.redd.it/e0n39wq0iew71.jpg?width=3024&format=…
@DashCam AKA Rolts: Is this not the 2021 Honda Civic Type R Limited Edition? Just seeing the yellow..
@monchee: I think it is, but the Special Market Adjustments is becoming common place in the USA, due to stock shortages.
@postform: The strategy is clearly that they are planning on bailing. This fixed price model, axing dealerships and selling top of the range models only will maximise their margins for the time they stay. Who knows, it may enable them to remain in the market indefinitely and be a success.
Look at their last month sales data. It's sinking like a rock.
Real question is OP why are you buying a brand new overpriced car from to quote you “sinking like a rock” company?
@postform: but it seems like more and more are taking on this fixed price strategy. benz etc. Is this a collusion amongst automakers to screw consumers?
@Thenarrator: It suddenly clicked that spending millions on marketing to attract the customer, then fighting for them amongst the different dealerships, is counter-intuitive.
Some brands already had a quasi monopoly (e.g. Subaru in Australia) where they would use your phone number to track you, and ensure the 2nd dealer you visit wouldn't undercut the first.
Tesla took it one step further and showed the manufacturers that they don't need dealerships at all
Honda's car division in Australia seems to have been completely mismanaged in the past two decades. Their sales have become almost non-existent and I don't see how the switch to this agency model will turn things around.
It's a shame for people who quite like the brand, but all we can do is watch it wilt and get overtaken by new entrants to the market.
I mean fixed price or otherwise, surely they are still wanting to sell cars right?
10 cars at $40k is more profitable that’s 40 of the same cars at $10k
I'll buy 40 at $10k.
There's a sweet spot and it's not at either end of your price braket.
The question is not:
Why is the price so high? rather
When will I get my new car?
But to answer the question….
Shipping costs have increased 7x
The AUD is around 72c
Since they cant get enough cars to satisfy demand they can ask almost any price they like!
i.e The law of supply and demand!
They're clearly looking to exit, because otherwise they wouldn't be putting people off like this. Only the rich and the true die heard fans of a brand will pay whatever is asked. Everyone else will just cross that brand off the list. Recent sales tell me they don't have that many die hard fans.
Speaking of the fixed price model, I wonder if Mercedes-Benz/AMG will also face the decline in sales in 2022. I mean their Australian driveaway prices already include premium of 50-80% compared apples to apples to the North American and some EU markets. Not to mention many AMG models are now 4 cylinders. Incidentally, I haven't done thorough research but in comparison Audi's new car prices seem universal give or take. I could be wrong because I only looked at a few of their models.
Regardless, it's definitely not a good time to purchase any vehicle… new or used.
Doubt it. Merc AMGs are high yield investments.
will have to see, people buying merc generally cashed up. but honda buyer would be mostly the average punter who wants to think they got a good deal.
no suprise. they dont even give better price for fleet cars
has anyone actually confirmed whether this fixed pricing strategy is actually legit or jus a bluff to stop people from haggling?
Welcome to the new norm of new car pricing
Wtf
You may not be Honda's target market anymore.
I don't think there is a target market for this car in Australia.
If they are thinking they can take away from Mazda at this price is laughing. The feature sets that you see for this car is so Little. They even got "half" digital cluster. HAHAHAHAH and the RPM cluster is still analog. Where as in Canada the feature set is amazing, full cluster and everything to go, check it out on youtube versus our sh**ty version selling at base level Euro car or even highest Mazda tier and some change.
Why are you under the misapprehension that an analogue tacho is worse than a shitty digital equivalent?
Yes, the digital dash in my Golf GTI is way better than your dinosaur analogue tacho.
So the target market is people willing to pay $47 for an average car?? WTF dude. For $47k you can get a hybrid RAV4 and have 5k left over for petrol for several years.
5k left over for petrol
5k left over for a kayak
FTFY
As someone who works with a guy who has a Kayak on his roof, I think they are more an X-Trail accessory… Pretty much the same though
Don't forget to budget for the roof rack
Where abouts can I get a hybrid RAV4 for $42k?
..asking for a friend..
I recently (early 2021) got a friend one for 43k including tow bar from the ACT. Need to speak to your dealer. They got a little discount.
Even if it's 47k it is still a better buy buy than this Honda.
check here under 2WD hybrid.
https://www.toyota.com.au/rav4/prices
@Naigrabzo: Bugger, maybe should've looked earlier this year.. can't find one at the 3 dealers I've spoken to for 8 - 12 months!
@sierra-juliet: Hmm I suggest you try. My friend got delivery in 2 months although they were quoted 6 months MINIMUM wait. Dunno about chip issues though.
TBH even the RAV4 is getting a little pricey…. The top tier EDGE is nearly 55k!
I am not convinced by Hybrid that much either. It is still innovative though and changed the market since the initial prius.
@Naigrabzo: Holy moly. I just said 'recently' and it was February 2021. This year has gone by FAST!!!
Otherwise my friend will sell his for $47k ie price match this Honda. Let me know.
@Naigrabzo: Yeah definitely getting up there price wise. I'd be more than happy with a 2-3 year old model but they're only a couple grand cheaper in this market so new it is..
To be honest mostly going Hybrid for resale value! I think the cost v benefit would be about equal in our case considering the km done based on a couple of articles I've read, so if it gets us an extra few grand resale it's worth it.
@sierra-juliet: Yeah I'd say. Toyota resale value is high so far. I sold a 17 year old Corolla with 195k for $5500!!! I bought the sucker for $17k.
The hybrid is only slightly more expensive and it is 'possible' that one could increase the battery capacity/powah and adjust computer to use more battery in the future….. Maybe I dream.
Damn, 47k for a civic…
Maybe they are trying to be the Japanese commodore?
With half the power.
And half the size.
And half the mullet
It's bigger than a 1980 commodore?
Once upon a time they might have been the Japanese BMW…
may as well get a 3yr old type R for that money. be interesting to see the sales figure for this model. it's already dived after the switch let's see how low it can go
These prices is a result of the waterfall effect after Honda switched to an agency model with fixed prices.
It's truely a sad day. Honda is going to die out in Australia :(
Thats what they have been working towards for 2yrs….
There's lots of rumours of Honda aiming to leave the Australian market in the next two years. If that happens, secondhand prices will tank. I wouldn't be buying one at this stage.
Honda is always over priced. But their service aren't as good as they used to be.
Surely this is taking the p*ss though!
Then again one of my relatives bought a Honda civic for $42k or so 20 years ago. For today's money, that would have been $60k ? Lol
I laughed when I saw Australian details of the new civic.
I can see this 11th gen being the last Civic ever offered in Australia.
Apparently there is a hybrid version coming next year, along with the type R… But they are going to have even crazier prices.
Hyrbid might be $67k. Might as well buy the Tesla Model 3 for $59k.
It’s not even EV or PHEV
or fast
or luxurious
or furious
just ludicrous
I'm an old man… when I was younger, Hondas made amazing desirable cars - NSX, DC2Rs plus plenty of other cars that were well priced, well built and fun to drive like EKs and BB6s. Owned about 6 Hondas, then they lost the plot. No one will be surprised when they exit Australia in the next couple of years. Even their "new Integra" is laughable. As an ex Honda fanboi, it's a real shame.
The same could be said about Nissan IMO. Nissan is doing a lot worse though, the only cars that are remotely fun in their portfolio are 12+ y.o cars. The rest are crossovers/suv's.
Nissan's cars from that era are so desirable that some of them have exploded in value (like the r34 where they fetch over 200k)
the only cars that are remotely fun in their portfolio are 12+ y.o cars
R35 GTR? 370z?
Yeah, basically ancient fossils that no one should be buying new nowadays
@Butt Scratcher: Nissan also at least has successfully built and marketed an EV for 10 years (albeit Nissan Australia and local dealerships dragged the chain big time on the Leaf). Either way they have the track record now to move into the EV sector in a competitive way, until the Chinese take over at least. Honda on the other hand… nothing just about
@Butt Scratcher: not even allowed to sell r35 anymore as it doesn't meet side impact protection regulations under new ADRs
@Butt Scratcher: On one hand, they're selling ancient fossils which nobody should buy. On the other, their old cars are so desirable they're fetching 200k. Which is it?
On one hand, they're selling ancient fossils which nobody should buy. On the other, their old cars are so desirable they're fetching 200k. Which is it?
Care to explain what you mean by that? I would've understood what you are getting at if they are still selling cars from the 80's and 90's, but they're not.
Regardless, you are definitely missing the point.
@Butt Scratcher: A twelve year old car is an 'ancient fossil' unworthy of my money, but an even older car from the 90s is so desirable they've exploded in value? Explain.
Funny that, I still have my S15 SpecR (sold an R33 GTR Vspec for peanuts 10 years ago). I also had a deposit for a new Z, but have cancelled it after the total f#ckup sales process at Ringwood nissan.
What happened at Ringwood?
For me the turning point was the new version of the CRV they introduced around 2006ish. Went from a big small car, to a generic SUV, with lower build quality. It seems that the quality drop was similar across the range. Look at how much an Accord Euro circa 2002-06 goes for (Overpriced as HELL right now) compared to anything after this period.
I love Honda, but they just aren't doing much to sell me on their new stuff for the past 15 years.
The rot set in when they start offering gold badging.
OP seems to be the only person surprised by this, or worried by it.
I am pretty surprised actually. It's like they want an excuse to exit the market.
The Honda Civic was last year available for as low as $24,990 drive-away; the revised range starts with a better equipped model priced from $31,000 drive-away.
To be honest, no one other than fleets generally buy the lowest range models.
But this is taking the p*ss haha! Offering only the highest model.
Lol @ Honda… Didn't even need to be shown the door, seems they are making their own way out.
The only people that buy over priced Honda vehicles now are basically boomers. Fixed price vehicles and now a single trim level. That's only going to appeal to a very narrow field of buyers.
I have a 9 year old low km's car and I was just looking not really buying and when I saw that from Honda I was like……. Yeaaaaaaah no thanks and the last two cars I brought were Hondas.
They are reliable. SURE. But this is crazy price dude.
It's a bit of a worry when the price of their "small car" is in the higher range of their more expensive CRV range.
Honda's just failing to innovate and adjust all round. They've been using their reputation to sell for a while whilst failing to provide cars that people want. After a while, reputation doesn't mean much when the product is more expensive and sub-par compared to what their competitors are providing. Who wants to buy an over priced civic with overpriced servicing when you can get the same quality cheaper all round with another Japanese or Korean car maker?
Their latest 2022 SI Honda civic is amazing actually. If they put in that model here and priced it well, I wouldn't be surprised if it sold as well as Mazda.
We get the crap they build in Thailand. Si is basically North American market only. I wish were were a LHD country!
Obligatory cheers OP got 5
?
Obligatory cheers OP got 5
It's ozsarcasm for…
Thanks for highlighting the bargain. I chose to purchase 5 Honda Civic's.
Ohhh.. r/swoosh 🤦♂️
Maybe they have a similar strategy to Ford? Basically get out of hatches and sedans all together and focus on the higher margin crossover/SUV/truck markets? Then (at least in Australia) just offer one model which has high margins: Like the high end sports or luxury version. Fits what you are suggesting.
Except they don't have much on offer. Take away the Civic (which are not selling anyway) there are two outdated SUVs left. Jazz is gone, no trucks and no more Odyssey.
Ford is surviving solely on the Rangers. For Honda, I think they are just on the way out all together.
Had no idea they'd stopped selling the Jazz. Amazing city cars. At one point my wife's extended family owned eight Jazzes between them.
Ford may have culled their passenger car range down to the performance models only but at least they aren't being this stupid with the pricing. A Focus ST is priced fairly competitively against it's main competition (i30 N) and is only about $3k more than this Civic.
The car itself is priced out of the market in all probability.
But I laud them for giving the no-haggle experience to the customers.
Many moons ago this model was the most pleasant car purchase experience I had in the US.
For all you know, this model might be a big hit here and the anchor Honda probably need.
Welcome to buying new cars in 2021
Honda fixed price model