27/03/2008

Move up-market will mean higher used values in 3-years' time

A higher entry price and continued progress in elevating the brand's perception will translate into higher residual values than the old Accord

Honda hopes that its all-new Accord will take the brand another step towards joining the elite trio of BMW, Audi and Mercedes-Benz in the prestige saloon market.

Certainly residual values for the new model will be stronger than its predecessor's. The new Accord has a more premium feel inside and out. The appearance is more aggressive, particularly on the GT-badged models, though the design remains evolutionary rather than revolutionary.

A range of new diesel engines will enhance the car's appeal, and Honda has even set the driver's seat lower in the cabin to suit European customer preference.

Significantly, the price of the entry-level model has increased by £2,000, an indication of Honda's intention to take on the higher-priced marques. The Accord continues Honda's progress in challenging the established sector leaders. With the latest Accord, Honda advances its case to be considered as more than just another mainstream car-maker. It now sits alongside the likes of Lexus, whose brand is more aspirational and whose vehicles are designed to be considered as rivals for the long-standing sector leaders.

We forecast that, despite the price increase, the new Honda Accord will retain a greater proportion of its cost new than the outgoing version, with the 2.2i-DTEC ES GT model predicted to hold on to 43 per cent of its list price after three years and 60,000 miles.
       
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