Ho Ho Ho! It’s that time of the year! Year-end sales are around and Honda is gracefully preparing for it due to the sudden rise in inventory.
Only in two months, Honda’s car inventory has risen to 38%. It has been the highest ever since the pandemic. There has been an oversupply of both – the latest Honda models and used Honda models, provoking a great deal.
As a result, this year-end Honda sales are about to be huge. We believe Honda models are about to be more negotiable now than ever if you look back to 2023. Our reports show a 47-day supply of new Honda vehicles, including the SUVs have been in progress.
What does it teach us? It offers us a better insight into which Honda models leave us with more room for negotiation and which ones may not.
Read till the end of our article and you will learn which Honda cars (new and old) are most negotiable for you. We will have an insightful look at the best deals for Honda. Let’s make some powerful deals this December.
Peak of the Day
- The hottest picks of the day would be the Honda CRV and Accord. Available in the 2024 model year, this Honda SUV and Sedan are believed to be most negotiable.
- The Annual Percentage Rate (APR) is low for new Hondas. Now is the best time to pick a new Honda instead of the used model to secure a handsome financial deal.
- Since the supply is increasing, now is the best time to buy a Honda. You are likely to receive one with high-interest rates.
It’s the best time for exclusive deals on Honda. We mean, can you believe it? Honda’s inventory rose to 38% in only two months. Such a window for mega sales usually doesn’t come regularly.
Honda Inventory Is the Highest Now
COVID-19 took a high toll on the automobile industry. The supply chain has been in a shortage due to the aftermath of the pandemic. It affected bigger whales of the automotive industry including our beloved Honda and especially other Asian automobile manufacturers like Mitsubishi or Toyota.
It was distressing that the inventory level recorded the lowest after the pandemic. Years passed, and Honda took a few years to get back in shape. Let’s talk about this shift in Honda inventory in the U.S.
This year in October, Honda’s inventory met a new demand in the U.S. It is also the time when Honda just started to compensate itself for the low inventory. It was a comeback time for Honda to climb out of the ladder that had been a curse for 3 years.
Now, on the verge of 2023, Honda is finally meeting some good deeds. The supply is rising, thanks to the holiday shoppers eagerly waiting to consume the mega sale!
New Honda Cars with Peak MDS
If you want to get a BTS on inventory metrics, first you should learn about a specific term called, “Market days supply (MDS).”
MDS can help us have an actual scenario of how industry metrics work and we can understand the legitimacy behind the negotiation of new or used Honda cars.
Market days supply is a parameter and it relates to the existing inventory of new/ used Honda cars with the units sold over the last 45 days. It divides the current available supply by the average regular retail sales rate in a range of the last 45 days.
A high MDS concerns a high volume of existing inventory as a denominator and also an incredibly high supply as a numerator.
MDS offers an oversight on the number of days left to sell all Honda cars in stock at present selling rates. In short, MDS previews the level of demand for any specific model.
**Note: Results are estimated assuming that no new Honda inventory has been in the queue.
A healthy MDS would result in between 45 and 60 days of supply. That’s an ideal number for starters. However, if your MDS stands below 20, it’s bad luck and you have a deep shortage.
A few days ago, within the first 15 days of December, Honda had a healthy 47 days of supply. For an automaker that’s been struggling to put sales together following the post-Covid sales drop, that’s quite impressive.
However, other domestic brands like Ford or Chevrolet meet a higher MDS. For them, 47 days of MDS is below average. For an industrial brand like Honda, that’s quite normal.
It’s impressive how most MDS of Honda models such as the Accord, Civic, CRV, Odyssey, Passport, Pilot, and Ridgeline stand above 45 in December.
In October 2023, this number was below 45 for most of the Honda models. Only the 2024 Honda HRV and 2023 Honda Passport stood out from the challenge with an MDS rating of 47 and 45 respectively.
The latest MDS has affected both the 2023 and 2024 Honda models. However, the Honda Accord and HRV were significantly held back due to seatbelt recall, learn more about it here. Definitely, Honda can’t put the affected HRV and Accords in sales until they fix the issue.
However, the new year is only a few days away. Honda is also working on the issue of installing error-free seatbelts following the rising pressure from the dealers. Dealerships across the world are waiting eagerly to deliver the Accords and HRVs in an offer price for the days left of 2023.
In summary, Honda’s updated car inventory has grown from 34 MDS in October 2023 to 47 MDS, in December 2023, within just two months. It’s a direct rais of 38% in a short time.
A big clearance sale is coming ahead and get ready for it.
Inventory of Honda Used Cars Are High Too!
In December 2023, inventory of the used Honda cars is also rising. We understand the 2023-2024 Honda models have a higher MDP due to the recall. But, what’s the case for used cars?
In the case of used Honda cars, the high interest rate is to blame. By the time we were writing this article, the average car loan rate was somewhere around 14% Annual Percentage Rate (APR).
If you can get a new car on a great year-end deal, why spend extra cash on high interest rates for used car loans?
However, Honda used cars have a high resale value. Other automobiles hold only about 35% of their original manufacturer’s suggested retail price (MSRP) after 5 years of ownership. However, you can get lucky with Honda.
This Japanese automaker significantly retains over 50% of its original value for the same 5 years of usage. It’s ideally a good investment for second-time sellers and buyers too.
Other factors also describe the popularity of Honda’s used cars such as high-reliability ratings, rider satisfaction, long-lasting performance even with a few miles of coverage left, and the quick selling option.
Moreover, new or old, if you use it properly, Honda cars are really low-maintenance vehicles. Particularly, the Civic’s i-VTEC petrol engines have a reputation as one of the most redefined and consistent auto engines on the market. Overall, Honda can be an excellent vehicle for you.
Get Lucky with the Attractive APR Deal of Honda
About 88% of Honda used models are facing a rise in inventory this December. If not sold out, dealers will face a huge loss!
Plus, Honda is offering an irresistible APR offer this December. It is available within 1.9% to 3.9% APR.
Look at it this way! No other automaker will offer you such a low car loan rate now for used cars. It’s better with Honda.
The average APR remains nearly 14%. If a car buyer has an excellent credit score, he/ she can easily be eligible for APR under 7%.
Does this mean you should be buying a used car now? Well, not really!
It’s about budget and flexibility. If you afford a new Honda, we would recommend you to go for the new Honda models, especially the SUVs (ideal for passengers and off-road).
Even after the APR is below 7%, a new car will gradually save you thousands of interest on your loan over the years to come.
Grab Your Year-End Sales Today
Not just Honda, December is the best time to buy a car from any brand. This year, it’s exclusive for Honda due to the inventory rise in two months!
Used cars are also available at a low-interest rate. Both automakers and dealers are in a rush to clear the 2023 Honda inventory from stock. That’s why a big year-end bonus is 100% confirmed anywhere you look.
In short, with Honda’s inventory striking a peak (both for used and new Honda), December is the real month to buy a Honda. Remember we wrote about the best time to buy a Honda car? Here it is!
December is the heavenly month to confirm your Honda today! It can be a new HRV or any pre-owned CRV, this is the right time to bid on your Honda.
The current automobile market is flexible and has more room for negotiation. So, if you understand the industry trend better, you are living in the best time to buy a Honda before 2024 kicks in.
So, what’s going on in your mind? Will you purchase a brand new/ used Honda this December or are you going to miss this opportunity to treat yourself with a value car like Honda? Let us know in the comment section.
Also, share our articles with others. It will help others and in return help us grow too! We will come back soon with another useful article on Honda.