My Fit was built today! (Early April delivery to South Florida)
Honda and its dealers can still make money on the Fit since the initial tooling costs have probably been paid off by now. Knowing this, a closer look at the particularities of the NA market warrants closer examination.
One should ask: Why did Honda deem it necessary to sell such a vehicle in NA in the first place? The answers may be a combination of:
1- A reply to any existing or forthcoming competitors that
offer/will be offering relatively inexpensive hatchbacks.
2- A logical repositioning of its model range in response to
changing demographics, long-term gas price projections,
and existing customer base retention.
There might be other reasons that elude me at this time. Honda can use a model which is relatively inexpensive to produce in relation to its other NA model offerings in order to "test the waters". It can initially be priced as a loss leader (let's say...the base model) with the potential of satisfyingly padding their dealers' profits when consumers opt for the Sport model. The spread between a base Fit and a base Civic should not exceed $1500 to $2000 cdn. Anything more could very well turn out to be a catalyst for cannibalizing sales of the Civic vs. the Fit due to the Fit's high level of std content.
One should ask: Why did Honda deem it necessary to sell such a vehicle in NA in the first place? The answers may be a combination of:
1- A reply to any existing or forthcoming competitors that
offer/will be offering relatively inexpensive hatchbacks.
2- A logical repositioning of its model range in response to
changing demographics, long-term gas price projections,
and existing customer base retention.
There might be other reasons that elude me at this time. Honda can use a model which is relatively inexpensive to produce in relation to its other NA model offerings in order to "test the waters". It can initially be priced as a loss leader (let's say...the base model) with the potential of satisfyingly padding their dealers' profits when consumers opt for the Sport model. The spread between a base Fit and a base Civic should not exceed $1500 to $2000 cdn. Anything more could very well turn out to be a catalyst for cannibalizing sales of the Civic vs. the Fit due to the Fit's high level of std content.
On a random note, just went to Cars Direct, and wow! Cool site!
Still gave me a too-high price on an '06 TR WRX though, it said that like $23,160 was a "target price", whereas I know that I could walk into a local dealership and get one for like $22.3k (MSRP is $24k)
Still gave me a too-high price on an '06 TR WRX though, it said that like $23,160 was a "target price", whereas I know that I could walk into a local dealership and get one for like $22.3k (MSRP is $24k)
Thread
Thread Starter
Forum
Replies
Last Post
Winston O'Boogie, MD
Honda Fit Dealer Reviews
1
Sep 28, 2008 12:21 PM




