A new Automotive News report focused on a number of Honda dealers throughout the United States who say they’re struggling to move Honda’s new mid-size off lots due to the automaker’s weak lease incentives. Honda lacks competitive offers in markets where others have particularly generous lease deals, one dealer explained, and the Accord is struggling to keep up.
Rick Case, who operates Honda dealerships in Florida and Ohio, told AN the Toyota Camry can be leased for significantly less than the Accord in certain parts of the country, and while the Accord may be a better product, it’s not worth the premium for most consumers.
“Where lease is heavy, like Florida, New York, Ohio and California, that’s where we’re getting hurt,” Case told the publication. “When you get two cars as close as they are, it’s not that much better than the Camry that people are going to pay $50, $60 [or] $80 more a month.”
As of March 1st, Honda had a 104-day supply of Accord inventory on dealer lots in the United States. Some dealers have also turned down more Accords, telling Honda they have more than enough based on the current take rate.
One dealer said Honda is reluctant to discount its Accord to the competitors’ level when it has a superior product. This isn’t always important for customers who lease however, which is resulting in the mid-size sedan piling up on US lots. Mid-size car sales have also been trending downward in recent years, with many consumers opting for small or mid-size crossovers instead, or larger SUVs.
[Source: Automotive News]
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