Honda Division typically isn't known for enticing customers with huge incentives but it apparently has chosen to make an exception for these times. It launched a major leasing and finance campaign that runs March 15 through May 3.
Dubbed the 'The Really Big Thing Sales Event' this program means that all Honda car and truck leases require no money down and no security deposit. Honda is offering 0.9 and 1.9% APR financing on selected cars.
With regards to lease incentive costs, American Honda Finance is offering shoppers'a favorable money factor,' and a capitalized cost reduction payout.
Honda spokesman John Fitzsimmons said that Honda is not subsidizing the residual value of the vehicles, partly because Honda residual values are already strong.
Jesse Toprak, vice president for industry trends and insights for consultancy TrueCar Inc., said that as a result, even when Honda spends more on incentives this month than the same time last year, it won't be considered a 'dramatic increase' from last March.
According to TrueCar, Toyota is spending an estimated $395 million in incentives this month, while Honda is spending about $204 million both significantly less than what Ford and GM are spending.
Toprak explained that Honda isn't actually 'going wild' with giving incentives. The upfront cash spent is minimal. He said that the real cost of special leases has dropped substantially due to the low cost of money, and the improved used car market.