As predicted by industry experts, Honda's new fixed-price business model has led to hikes for almost every model.
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Almost every Honda new car will be more expensive for Australian buyers when its new fixed-price business model is introduced at the beginning of next month.

The cheapest Honda Civic has risen by more than $6000 – from its most recent low of $24,990 drive-away for three months last year – and the range now starts with a better-equipped model from $31,000 drive-away.

As part of the changes, from July 1, 2021 Honda will move to nationwide fixed pricing.

Price rises on other models in the range vary from $251 for Civic VTi-L hatch and $977 for the HR-V VTi SUV, when calculated using metro Sydney pricing.

However, capped price servicing for routine maintenance is reduced to $125 per visit for the first five years.

As was previously the case, metallic and pearlescent paint is already factored into the drive-away price.

The base model Honda Civic VTi hatch – which was formerly the brand’s cheapest vehicle – has been axed from the line-up, with the Civic range now starting from $31,000. Previously this model limboed to as low as $24,990 drive-away.

The only model in the 18-car line-up to record a price cut is the Accord VTi-LX 2.0-litre Hybrid sedan, trimmed by $106.

Honda is not the only company to offer fixed pricing – Tesla and Hyundai's luxury subsidiary Genesis currently do not negotiate on price in Australia, while Mercedes-Benz is set to introduce a similar business model in January 2022.

As previously reported by CarAdvice, expert analysts have noted a shift to fixed-price business models will likely lead to higher prices.

John Krafcik – a former senior executive at Ford, Hyundai, Google and Waymo – said: “In a one-price environment for direct to consumer, the manufacturer sets the (RRP) and there’s no room for negotiation, so it will result in higher transaction prices.”

For all price comparisons between the current and soon-to-be introduced prices, see the table below.

ModelGradeExisting prices (drive-away, calculated in metro Sydney)New drive-away price
Civic HatchVTi-S$30,735$31,000
AccordVTi-LX (1.5-litre turbo)$57,190$57,400
VTi-LX (2.0-litre Hybrid)$60,506$60,400
OdysseyVi L7$48,381$48,700
Vi LX7$55,626$56,000
VTi 7$39,965$40,300
VTi X$40,892$41,200
VTi L AWD$45,155$45,500
VTi L7$48,326$48,700
VTi LX AWD$52,841$53,200