Honda Incentives

The AIADA newsletter has reported that Honda is high on incentives this year, a unusual Honda decision from its usual, normal conservative approach. While Honda doesn't offer cash rebate to customers, dealer incentives and lease subsidies are like never before. The incentives keep climbing as Honda tries to sell off remaining aging models.

"Everybody thinks Honda has it so easy," says Jeff Conrad, vice president of advertising for US Honda. "But it's competitive for us, too. We do what we have to do to meet sales targets." Conrad insists Honda won't dole out consumer cash - a move that pleases Honda dealers because it protects residual values.

"Honda is smart on how they spend their money on incentives," says Forrest McConnell, president of McConnell Honda-Acura in Montgomery, Alabama. "Honda makes good business decisions. They're protecting the retail value for the customers."