'03 EPs even cheaper now

[bobdobbs]

If you're shopping for an EP3, Honda increased their factory-to-dealer incentive, from $750 to $1000 and they still have the 1.9% financing. Looks like they're clearing them out before the '04s get here. carsdirect.com is listing the price as $16,221, which you should be able to get any dealer to match. Hooray for deflation!

[spydur]

The end of year price reductions on Si's is not an example of deflation, it is simply the only way a dealer can sell his remaining vehicles. The fact that HONDA has increased the marketing allowance along with the fact that Si's are selling for approximately $3,000 below MSRP confirms that HONDA missed the proper price point. In a free economy, demand for a product is the stongest influence factor on price. If demand is low then the price falls until price and demand are in balance. (FWIW: Deflation is a reduction in available currancy and credit that causes a decrease in the general price level.)

HONDA MARKETING's misunderstanding of what the market wants in a performance sub-compact is not an economic issue, it is a marketing @#%&-up. At a MSRP of $19,400 the Si is overpriced. We all know that a US version of the CTR for that price would work.

Unfortunately, the announced improvements to the 2004 Si (16" wheels, improved steering feel, lower side panels, along with revised head and tail lights)will only partially address what the market wants. Until HONDA sees fit to increase its engine performance, the Si will continue to languish.

[bobdobbs]

It was a joke, son.

[Zero Three Si]

16,000......I wouldn't even pay that...


I've seen them in the Chicagoland area avertised in the Chicago Tribune for 15,000....one dealer even had it listed at 14,995

I paid 16 for mine back in April.

[Kirei]

Originally posted by spydur
The fact that HONDA has increased the marketing allowance along with the fact that Si's are selling for approximately $3,000 below MSRP confirms that HONDA missed the proper price point. .

Honda is selling them way the shit below MSRP has absolutely nothing to do with a "improper price point". Marketing allowance? hahaha now thats funny. The only thing honda has done is give the dealership a small incentive to help push these cars off the lot.

Improper price point hahahahah. Just think for a second. If Sis were meant to be around $16k, honda can kiss their entire 2dr civic line goodbye.

If indeed the CTR did come out in the states which it wont, it wont be that far off from a Type S.

[spydur]

FWIW (from the info that I have), a Dealer's current net cost in an Si from HONDA is $16,252, after deducting the dealer holdback and marketing allowance. Therefore Si's sold below that amount result in a loss to the Dealer. This analysis does not include the Dealer's financing cost and overhead allocable to each unit sold.

Also, I believe the principle reason the Si's doesn't sell well here is the fact that the American market prefers a fastback coupe design over a hatch (style over practicality). Whereas the hatch is appealing in Europe and Japan due to the different market dynamics (practicality over style).

This tread started out with a referance to the economic term deflation. Although, the originator may have made that statement in jest, I thought it might be appropriate and even possibly educational to take an economic approach to the issue.

[Papa Bear]

Thanks Spyder. You are right on the money. Honda did price this car higher than the consumer was willing to pay. That is why they have been discounted ever since they hit the market. I think that there are still '02 "demos" floating around here still. You never saw 1.9% financing and a $3000.00 discount on the '00 civic SI coupe. They wouldn't even let me test drive one and you had to pay full list. Deflation is definately not the reason the price is lower. Thanks again for your input.

[spydur]

Thanks for your support, Papa Bear.

Taking your comments a little further:

If HONDA had made the Coupe into an an Si rather than the Hatch, the Si would have been much more successful in the US. But, then AMERICAN HONDA would have had a conflict with the base RSX. I believe that they tried to take a Euro product (Civic S) and modify it for the US market.

Personally, I prefer the Hatch. But, I have always been interested in the efficiency of foreign cars - not american styling and heavy steel.

[bobdobbs]

Originally posted by Papa Bear
Deflation is definately not the reason the price is lower.

What's it like going through life so literal-minded, Papa?

By the way, it's "definitely".

[SinisterCivicSi]

i am sensing a lil tension......you two need to go to your corners for a time out??

[craig]

last november they were selling 02 Si's for $15,542.00 when the 03 were comming out.




N.

[Kirei]

Originally posted by spydur
FWIW (from the info that I have), a Dealer's current net cost in an Si from HONDA is $16,252, after deducting the dealer holdback and marketing allowance. Therefore Si's sold below that amount result in a loss to the Dealer.


There is a reason for dealer holdback that people do not understand. Its not "secret money" that they try to hide from the consumers, its what honda does to pay back the dealerships for the interest that they charge on the cars that sits on the lot. Every single car that sits on the lot is not paid for at all. Every month that the car sits, honda charges the dealership a sum until the day the car is sold. This way, the manufacturers puts pressure on the dealerships to sell cars instead of letting them sit as long as they like. The reasoning of the holdback is not for gaining purposes, but rather reimburstment. So technically, dealer cost on the Si is $17,821

[natesi]

There are multiple factors for the price that an Si is selling for--it doesn't boil down to just one thing. However, by in large, Spydur is correct. Anyone who has taken an econ class (or two, or three) knows how it works.