Honda’s New Purchase Model Takes Effect

Honda begins transition to New Sales Model

For years, customers have had to haggle when buying a new car and several brands see this as a barrier for buyers. Honda is among the first to change to a new model, completely transforming the way the business operates, and the way customers buy cars.

Price:

Pricing is now drive-away for all models. This includes state charges and fees, dealer fees, warranty, roadside-assist, and low price 1^st 5 services $125ea).

Price includes all paint colours, even those previously optional extras, but does not include genuine Honda accessories, such as mats and roofracks.

“No more haggling or shopping around for the best price. With the Honda Price Promise you’ll always pay the same price for your new car no matter which Honda Centre you visit – with all drive away costs included.

You’ll pay just one price, before adding any accessories, wherever you go, with no pressure to buy. We believe it’s a much more transparent and enjoyable way to buy a new car. And it’s our promise to you.”

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ABOVE: New Honda Display concept and New Honda website

Customer Portal:

A new website allows buyers, owners, and browsers to view and configure possible purchases. Test drives can be booked, as well as service appointments and other contacts with Honda.

Honda says this removes stress that comes from sales staff pressures.

The Honda Network:

New cars sales will be handled by 47 business owners. Stock will be held and owned by Honda, and not the dealer. It will be housed in a central location, not at the dealer. Honda will own test drive and loan cars, as well as display stock, and sales staff will act on behalf of Honda Australia.

30 service centres will cover the metro areas, with a further 60 in rural parts of Australia. It allows new car showrooms to be at other locations such as shopping centres.

Accessories:

Honda has bundled accessories in to 3 packs, giving a saving of around 20% over buying the parts individually.

The bundles are: Essentials Pack, Style Pack, Premium Protection Pack

Honda Road Ahead Guarantee:

Hondas now have a five-year unlimited-kilometre warranty and five years of premium roadside assistance as standard, providing peace of mind for customers.

PLUS: a low price for the first five standard scheduled services, whether the service is based on elapsed time or distance travelled. $125 will be the standard price for each of the first five standard scheduled service intervals.

The total is $625 which is a saving of around $1,250^~ for the customer.

When you combine the service interval savings with the value of five years of premium roadside assistance, more than $2,000 of value will be delivered to the customer under the new business model.