Photo: Honda
Last week, Honda confirmed that 2018 Accord production at the Marysville, Ohio-based plant would be idled for 11 days over the next four months. The reason? “Sluggish U.S. sales and swollen inventories,” as well as a higher starting price in comparison to the 2018 Toyota Camry. But better late than never, the automaker decided to put things in motion by slashing the lease price by up to 1,100 dollars.
According to Cars Direct, “an APR of 3%” is a lot better than last month’s 5.5 percent. Payments, according to the cited publication, “have improved by up to $20/month while due at signing amounts have plummeted up to $1,100.” What that means for the 1.5-liter LX trim level is $249 for 36 months and $2,399 at signing.
The 1.5-liter EX benefits from the larger cut of $1,100, with this configuration now starting at $289 for 36 months with $2,699 at signing. A considerable price cut has been announced for the 2.0T Sport trim level too, but at the end of the day, the Accord still can’t cut the mustard when compared to the Camry.
Here’s how the cookie crumbles: ”With an effective cost of $316, the Accord LX is a whopping $61/month more expensive to lease than a 2018 Toyota Camry SE ($255) in places like San Francisco.” At the same effective cost of $255, there are two alternatives in the mid-size sedan segment that are worth highlighting. These are the 2018 Ford Fusion SE 1.5-liter Tech Package and the 2017.5 Mazda6 Sport.
The bottom line is, Honda is keeping prices high because the Accord is still relatively new. But Toyota doesn't do that even though the latest Camry went official for the 2018 model year. In other words, Honda sure likes to rake in that profit with both hands, regardless of drawbacks. And in the long run, that’s not sustainable.
You see, the falling demand for sedans will get worse in the years to come. By default, automakers that wish to remain relevant in the segment have to adapt or pull these products out to make room for crossovers and SUVs. A prime example of this set of circumstances is the 2020 overhaul of the Fusion, which Ford has reportedly canceled.
The 1.5-liter EX benefits from the larger cut of $1,100, with this configuration now starting at $289 for 36 months with $2,699 at signing. A considerable price cut has been announced for the 2.0T Sport trim level too, but at the end of the day, the Accord still can’t cut the mustard when compared to the Camry.
Here’s how the cookie crumbles: ”With an effective cost of $316, the Accord LX is a whopping $61/month more expensive to lease than a 2018 Toyota Camry SE ($255) in places like San Francisco.” At the same effective cost of $255, there are two alternatives in the mid-size sedan segment that are worth highlighting. These are the 2018 Ford Fusion SE 1.5-liter Tech Package and the 2017.5 Mazda6 Sport.
The bottom line is, Honda is keeping prices high because the Accord is still relatively new. But Toyota doesn't do that even though the latest Camry went official for the 2018 model year. In other words, Honda sure likes to rake in that profit with both hands, regardless of drawbacks. And in the long run, that’s not sustainable.
You see, the falling demand for sedans will get worse in the years to come. By default, automakers that wish to remain relevant in the segment have to adapt or pull these products out to make room for crossovers and SUVs. A prime example of this set of circumstances is the 2020 overhaul of the Fusion, which Ford has reportedly canceled.
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