| BlackDeuceCoupe |
12-16-2001 11:08 PM |
Beginning Of The End???
Quote:
Aftermarket Fans Snub Redesigned Honda Civic
Honda Civic coupes could suffer a decline in residual values because it lacks popularity with people who soup up cars with aftermarket products, according to one analyst. CNW Marketing Research is placing the Civic on a Residual Watch for the first time in the vehicle’s history.
This means the company expects the Civic to be two or three points off its ALG projected value on two-, three- and four-year leases. "It’s starting to lose its luster with its key used-car buyers," said Art Spinella, CNW’s president. The Civic is one of the best-selling small cars in America. According to CNW, there were 311,722 used Civics sold in 2000.
[img]http://hondanews.com/forms/honda/civic/*PV_1528[/img]
The car has had a loyal following among people who like to soup up vehicles, a group Spinella calls "tuners." "This is the first year tuners said they didn’t like the Civic," he said. This is a group that had been die-hard fans of the Civic. “The Honda Civic is by far the most popular vehicle among sport compact en-thusiasts,” said a release from the Specialty Equipment Market Association. Aftermarket products for the Civic include everything from cold air and short ram induction systems that create more horsepower to a wide-body kit that includes the front bumper, rear bumper, side skirts, rear fender covers, front fender covers and the gas door filler cap.
[img]http://hondanews.com/forms/honda/civic/*PV_1602[/img]
The Civic was redesigned for 2001 and Spinella said the vehicle has become too mainstream. “It’s more Accord-like,” he said. The new Civic was a Five-Star winner in federal government crash tests but that kind of performance doesn’t appeal to the youthful tuner crowd. “When you look at the people who buy used Civics, almost 30 percent of them are under 30,” Spinella said. The tuner crowd is now turning to vehicles such as the Mazda Protege instead, Spinella said.
Not everyone agrees. Ricky Beggs, editor of value guide Black Book, doubts the new Civic will suffer from its design. “Traditionally, the car has held its value,” he said. “We don’t anticipate a change.” Kelly Blue Book said the vehicle retains almost 100 percent of its value, leading in its class.
According to the Manheim Online Market Report, however, the drop off in value has started. A 2001 Civic wholesales for $8,276 and retails for $9,439, compared to the 2000 version, which wholesales for $10,308 and retails for $11,632. Honda remarketers are unconcerned about the drop off in tuner sales. There has been some loss in that segment but the new Civic was intended to appeal to a more general audience, said Dan Crowe, manager, automobile remarketing, American Honda Motor Co.
The company has run a few repossessed Civics through auction, said David Langley, manager of lease-end remarketing, American Honda Finance Co. The cars that have gone through the lanes have done well, he said.
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