Honda Australia locks in fixed drive-away pricing model

Honda Australia has announced a new fixed drive-away pricing model for new vehicles, regardless of the Honda dealership. This does mean price hikes across the showroom, however.

Honda says that its new “Honda Price Promise” helps to deliver value and certainty for customers, some of which may have been forced to pay more depending on the dealership they visited.

To make the deal even sweeter, Honda is throwing in five years of premium roadside assistance on each new car sold, as well as capped-price servicing of $125 for the first five scheduled services. Honda says this will save new car owners $1250 across the first five services.

The Honda Price Promise program comes into effect on July 1, and is the result of a business restructuring within Honda aimed at delivering equal value for all of its customers. That new business model states that the previous manufacturer’s list price will be replaced by a uniform national drive-away price, which includes on-road costs, statutory charges, and any metallic or pearlescent paint finish chosen by the customer.

New cars sold will be packaged with Honda’s five-year, unlimited kilometre warranty, as well as the aforementioned roadside assist package. Honda Australia’s director, Stephen Collins, said:

“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. 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.”

All models in the showroom receive a price rise as a result of the changes, with most going beyond what the on-road costs would be, between around $300-500 more. The new drive-away price list is as follows: