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New Entry in Dealers April 2006
Honda has just announced pricing for their newest entry, the Fit. This five-door hatchback has been offered in international markets for a few years, and joins the U.S. lineup after an introduction at the 2006 North American International Auto Show in Detroit in January 2006.
According to AutoPacific, the Fit competes in the Economy Car segment, populated with several other all new or fresh entries. Fit competition includes the Toyota Yaris (all-new for 2007MY), the Kia Rio and Hyundai Accent (both all-new for 2006MY), the Chevrolet Aveo (gets a major change for 2007MY), and the Scion xA. While these are all basic transportation entries, the segment itself is poised for some growth over the next few years.

Though a $12,000 base price point was expected, Honda launches the Fit with a base price of $13,850. The base price gets you the same engine as at any other price point, a 109HP 1.5L DOHC 16v I4, six standard air bags (driver and front passenger, seat-mounted side airbags, and side curtain airbags), and an anti-lock braking system. The standard car gets a five-speed manual transmission, though another $800 gets you a four-speed automatic. The uplevel model is the Sport ($15,170), and it adds a rear roof spoiler, fog lights, keyless remote entry with security, cruise control, upgraded stereo, aluminum alloy wheels, and an aero body kit. Opting for the automatic in the Sport for the same $800 also gets you steering-wheel-mounted shift paddles.

It will be interesting to see how pricing the Fit at the high end of the segment affects their 60,000-unit annual sales target. Fit slots below the Civic in Honda’s lineup, but in pricing it only $500 below the cheapest Civic, the clear space is not as distinct as it should be. It helps that the Fit is offered in a different bodystyle than Civic and therefore there is no directly comparable model. Civic is offered only in two-door coupe and four-door sedan forms and Fit provides a hatchback, but the Civic offers more standard equipment and a 140HP engine.

Pricing Against the Competition
Honda hopes to carry off the price premium for its quality reputation, but Fit pricing goes above the competition with no clear consumer benefit. At the first glance of AutoPacific and VehicleVoice analysts, Fit’s pricing is above much of the competition, but on closer look it is nearly on top of the Scion xA, likely the most direct competitor. Though Honda gave its five-door a price tag about $500 more than the base xA, that price advantage is counted when you add $650 for side and curtain airbags that are standard on the Fit. The xA also gives you standard power locks and mirrors and an AM/FM CD stereo.

The Fit arrives significantly more expensive than the all-new Toyota Yaris three-door hatchback and four-door sedan, and well above the Chevrolet Aveo sedan or hatchback and Hyundai Accent sedan. Toyota launched the Yaris with a base price of $10,950 for the three-door and $12,550 for the sedan, though without ABS and only two front airbags. Adding these items, at $300 and $650 respectively, still leaves the base Fit at a nearly $2000 price disadvantage over the three-door Yaris. At a Kia dealership, $13,500 gets you into a base Rio hatchback, more expensive than the Rio sedan by about $2000, Kia offers all the airbags, no ABS, and includes sporty cues and bigger wheels and tires than the hatchback Fit. In Honda’s own stores, the base Civic coupe gets the same equipment package as the Fit, but a more powerful engine, and carries a base price only about $500 more than the Fit. All in all, we’ll take the Civic, please.


Pricing sources: Kelley Blue Book and Honda. Prices do not include destination charges, which vary between manufacturers.