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Honda raises prices across most models, as fixed-pricing rolls out from July 1

As predicted by industry experts, Honda's new fixed-price business model has led to hikes for almost every model.


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 VTi-S 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 the 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 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.”

ModelGradeExisting prices (drive-away, calculated in metro Sydney)New drive-away price
Civic HatchVTi-S$30,735$31,000
VTi-L$34,649$34,900
RS$39,284$39,600
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
HR-VVTi$30,323$31,300
VTi-S$34,752$35,100
RS$38,151$38,500
VTi-LX$40,676$41,000
CR-VVi$34,855$35,300
VTi$37,842$38,300
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
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William Davis

William Davis has written for Drive since July 2020, covering news and current affairs in the automotive industry. He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy. As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic. Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.

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