Honda is trying to find new ways to clear old stock after making the controversial switch to non-negotiable fixed prices.
The 2023 Honda CR-V is expected to be replaced by an all-new model in the second half of this year, or next year.
Now the Japanese car maker has been obliged to come up with a new way to clear remaining stock of the old model after it switched to non-negotiable fixed prices mid 2021.
To clear remaining inventory of the runout model, Honda CR-Vs delivered before 31 March 2023 come with an extended unlimited-kilometre warranty of up to seven years (up from five), seven years of ‘premium’ roadside assistance, and five ‘low-price’ services.
Normally, car companies introduce sharp drive-away deals to clear showroom stock in the months leading up to a new model.
But Honda has backed itself into a corner by insisting its prices are not negotiable – after changing its contracts with dealers to make them selling agents with access to a pool of vehicles owned by Honda, rather than independent operators who own showroom stock.
Under the old Honda showroom arrangements, dealers were free to negotiate to get customers to sign on the dotted line. But the new ‘take-it-or-leave-it’ fixed-price business structure removes the ability for dealers to negotiate.
German car giant Mercedes-Benz also made the switch to non-negotiable fixed prices in Australia at the start of 2022.
Because all vehicle inventory is now owned by Honda Australia and sold at a fixed price – with a commission paid to dealers upon sale – there is no longer an urgency to sell old stock, and customers aren’t offered financial incentives to buy an ageing model.
Dealerships also often have multiple car brands under the one roof, meaning a salesperson could have more of an incentive to sell a rival model to a customer than a Honda.
MORE: Honda HR-V, CR-V and Accord prices rise by up to $2000
But instead of discounting its fixed prices, Honda is currently offering an extended warranty, roadside assistance, and cheaper service pricing.
The medium SUV is priced from $35,900 before on-road costs for the CR-V Vi with the 2.0-litre non-turbo petrol engine sending 113kW the front wheels, and up to $53,600 plus on-road costs for the all-wheel-drive CR-V VTi-LX with a 1.5-litre producing 140kW.
The next-generation Honda CR-V was revealed in July 2022, and is expected to arrive in local showrooms in the second half of 2023, or in 2024.
For now, Honda Australia is yet to announce launch timing for the new model.
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