How do Honda Dealers move cars off the lot with no rebates when they have a lot of stock left.?

Answer 1

Rebates are only a small portion of the marketing activites that are used to increase the sales of new cars. They are the most well known but not necessarily the most effective incentives. Honda has never played the rebate game. That doesn't mean that they don't have marketing programs to move the metal when necessary.

Honda's two main incentive programs are subvented financing and discounted leases. A subvented financing program is where the distributor buys down the interest rate on the life of a loan to make the monthly payments more affordable to the buyer. For example, if the going rate on a 6 year car loan is 6.9%, Honda may buy it down to 2.9% by using marketing money to pay the other 4% interest fees.

Similarly, with discounted leases, Honda may apply marketing monies to the lease costs to make a car that typically leases for $249 per month available for a discounted lease rate of $199 per month.

In either case, the interest rate or the price of the car did not drop; Honda used its marketing funds to make the montly payment more affordable and to make the deal more attractive to the customer.

In additon to these two marketing strategies, Honda often pays incentives to the dealers on a per car sold or aggregate sales amount so that the dealer will reduce the price of the car to the customer to move the product. They also pay money to the sales peope at the dealership as a bonus for specific units sold above and beyond what the dealer pays them. So for example, if the Ridgeline is not selling, then Honda may offer the dealer $2000 per Ridgeline for each Ridgeline that they sell over 10 units as an incentive to increase sales. The smart dealers spread that number over all Ridgelines to reduce the sales price to the customer. They may also offer the salesperson an entry into a cash bonus lottery for each Ridgeline sold that guarantees them a minimum amount per Ridgeline but a chance to win much more in order to get the sales consultants to promote the slower moving models.

Automotive incentives are an industry in and of themselves. These are not the only ways that are used to increase sales but they are the most popular ones used by Honda instead of using rebates.

hope that answers your question

Answer 2

i dont drive hondas myself but my wife does, i think dealers
dont have to give rebates or a free balloon, because hondas are well built cars and are very popular to the young and older persons, mostly women..

Answer 3

They have a huge demand and don't have to offer rebates as incentives.

Answer 4

Usually, they drive them. If the car is sold, then the buyer drives it.

Answer 5

because they are great cars.....