By KBC Associate 
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Buying a new car used to be all about negotiation, with buyers and sellers locked in a battle of wills, each deploying their arsenal of tricks in an attempt to get the other to wilt or capitulate. To some this was exciting, an added thrill in the process of securing a fresh set of wheels.
Such people tend to be the exception, however. Research by Honda suggested 90 per cent of consumers were happier not needing to negotiate, so in 2021 the company took the initiative by introducing the One Price Promise.
This guarantees buyers will pay the same fixed, drive-away price regardless of the state or territory they live in, eradicating the need to shop around between dealers and eliminating any worry about whether the final result was a good deal or an overpay.
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As part of the One Price Promise, Honda moved to an ‘agency sales’ retail model, taking away the financial liability of owning unsold vehicles from its ‘Honda Centre’ dealers. And while the new arrangement required some acclimatisation, it’s now working to the benefit of both parties – buyers and sellers.
“While we always knew that there would be a core group of customers who love to haggle and for whom this model probably wouldn’t work, the majority of customers – in fact, far more than we anticipated – have told us that the agency model has returned the joy of buying a new car,” Honda Australia’s now-former director Carolyn McMahon told Australian media at the launch of the sixth-generation CR-V.
According to Honda, customers are finding the One Price Promise saves them time, allows them to be better informed ahead of the ultimate decision, and reduces the pressure and anxiety felt by those for whom the negotiation process is a drain, not a game.
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Honda CR-V
But Honda says it’s showing clear advantages for the dealers, too. “Our Honda Centres are loving it,” said Ms McMahon. “They’re quite happy with the fact that they don’t have to hold the inventory and that’s now a Honda responsibility. Our stock inventory management is under constant monitoring… how we can be efficient and effective.”
Because all the available vehicles are held in a central location, there is no need to negotiate between dealers to get the right variant or colour – if it’s in stock, it gets dispatched.
To further streamline the buying process, Honda adjusted its specification levels to be all-inclusive. While there is still the need to pick a paint colour, doing so doesn’t affect the final price. In fact, there are no options, so it’s simply a case of selecting the appropriate trim level for your needs. According to McMahon, eliminating the haggle has instead given salespeople the time to help customers select the right vehicle.
Supporting the One Price Promise is Honda’s Road Ahead Guarantee, which aims to make the post-purchase experience as smooth as the buying process. Once again, it’s all about providing as much transparency as possible. Every new Honda is covered by a five-year, unlimited-kilometre warranty, while hybrid vehicles come with an eight-year battery warranty.
The warranty covers any genuine parts and accessories and is transferable to subsequent owners at no cost. Five years of Premium Roadside Assistance is also included, available 24 hours a day, 365 days a year in the event of unforeseen challenges such as breakdowns, flat tyres, running out of fuel and more, as well as accommodation and car hire to keep you mobile and get you home safe.
As the name suggests, Honda Extend allows customers the opportunity to extend their warranty and roadside assistance coverage from five years to a total of eight years, while the rust and perforation warranty will also extend from six years to eight. In order to qualify, the vehicle must have been serviced at an authorised Honda Service Centre in accordance with its servicing schedule.
Speaking of maintenance, it has long been a minefield of hidden costs. To eliminate the dreaded bill shock, Honda’s first five services are capped at $199 each, for a total of just $995 over the first five visits. Should extra work be required beyond that specified for a scheduled service, the Honda Service Centre will seek approval from the owner before completing the work.
These customer-focused measures were part of a larger shift in company policy to ensure long-term sustainability. Selling as many cars as possible at whatever price makes for impressive numbers, but there are costs – tangible and intangible – associated with that.
Ensuring the right cars are being offered to the right customers at the right price is the goal, leaving how to celebrate your shiny new car as the only negotiation.
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MORE: Everything Honda