The base 2012 Honda Civic DX, for instance, starts at $14,990 and comes equipped with a standard five-speed automatic transmission, versus $16,990 for the 2010 Civic DX with autobox.
It’s a similar story right down the Civic lineup, including the sporty Si which for 2012 is $890 cheaper than the less powerful, less well-equipped 2010 version.
In fact, Honda Canada officials such as senior product planner Matt Wilson argue that not only are prices down, but content across the board is up to the tune of thousands of dollars in value.
Make no mistake, with the 2012 Civic that is being advertised with some pretty incomprehensible commercial spots, Honda Canada is selling the deal at least as much as the latest engineering and design developments.
That’s shocking. For decades Hondas have pretty much sold themselves on the usual left-brain merits of durability, reliability, safety and resale value. Honda’s sales strategy has been more about finding ways to let people buy the cars as opposed to selling them with discounts, low-interest financing and savvy showroom tactics. No more.
The consequences of starting down the road of a discount brand are many for Honda. First among them is resale value.
The latest research from Canadian Black Book shows that Honda brand vehicles have the fourth-best 48-month residual values in Canada. Four years from now your Honda car should be worth 47.7 per cent of its original price, while on the light truck side the four-year residual value for a Honda is 48.8 per cent.
What will happen to Honda resale values now that the company has started moving metal by cutting prices, offering payment deals and sweetening offers with cash-back incentives. Surely this can only have a negative impact on residuals.
This ninth-generation Civic is as much about the deal as it is about the engineering, design, comfort, reliability, safety and fuel-efficient performance. As I said, a shocker and perhaps also a sign of the times.
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