Incentives Surge in July for Struggling Honda CR-Z Hybrid

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Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

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, Senior Pricing Analyst - July 7, 2015

Let's be honest- the Honda CR-Z probably hasn't been on your radar if you've been shopping for a green car. It hasn't been a big seller- just 204 of them were sold last month when supply levels stood at 211 days' worth (the industry average was 56 days). For July, Honda is giving the struggling model some serious help with a massive new incentive. However, you won't see the discounts advertised. Here's what you need to know.

Unadvertised incentives

Unlike most mainstream automakers, Honda uses unadvertised incentives referred to as dealer cash to sell at competitive prices. Dealers use their discretion whether or not to pass along the savings or keep as added profit.

The CR-Z is a bit odd because it almost never gets this type of incentive. In a way, this is reasonable given how few of the cars dealers tend to stock relative to big sellers like the Civic or Accord.

Deal overview

The new incentive, which started today and runs through September 7, is worth a massive $2,000 in potential savings. The closest we've seen to this level of discount on something similar was the $2,000 rebate on the Toyota Prius c this past April in Socal. However, that deal ended rather quickly and wasn't renewed.

If you prefer to lease a CR-Z, a new offer was added for July. You can lease one from $199 per month for 36 months with $2,699 due at signing. However, this lease ranked poorly in our analysis due to the large amount due at signing given the car's relatively low MSRP of $21,615.

If you're a lease shopper, the Prius c may be a good alternative. This month's deal in Socal is $179 per month for 36 months with $1,999 due at signing. This represents a $10 cut in payment compared with last month. Given the car's lower effective cost when factoring the payment and amount due at signing, it's a superior deal.

Side-by-Side: Honda CR-Z vs. Toyota Prius c>>

Our take

Reports indicate Honda is working on a major redesign for the CR-Z based on the upcoming Civic platform. However, we won't see it until at least 2017. If you've been waiting for a deal on the current model, now may be a good time to buy.

It's arguable whether or not the CR-Z is actually sportier than similar hybrids at its price point. The Prius c gets 50 mpg overall compared with 35 mpg on the CR-Z and actually has a back seat instead of just a cargo shelf.

The Prius c may be a better small hybrid when it comes to leasing, but shoppers looking to purchase may have a unique opportunity this month on the CR-Z. You'll need to find a dealer willing to pass along the full incentive, so we recommend asking for quotes from multiple dealers to get the best price.

Get a local price on the Honda CR-Z>>

Visit our CarsDirect Pricing Insider page for pricing and deal analyses for over 300 models. Sign up for email alerts to have our analyses delivered straight to your inbox. Browse our Deals Articles for insider info on the latest new car incentives that can save you money.

Incentives listed here are based on a resident in Southern California. Lease offers are based on top-tier credit and exclude tax, license, title, registration, document fees and insurance. State-level incentives can vary, so please check with your CarsDirect Trusted Dealer to confirm all available offers in your region.

, Senior Pricing Analyst

As CarsDirect’s resident pricing analyst, Alex offers must-know analysis of pricing & incentives to those looking to buy or lease a car. His consumer-oriented coverage of the latest trends and breaking news has been featured in publications such as Car and Driver, Motor Trend, Automobile Magazine and Autoblog.

Follow On: Twitter | Website

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